- Inflation slowed to its lowest annual rate in more than three years in May, according to a key indicator closely watched by the Federal Reserve.
- Home prices may finally be starting to stabilize.
- President Joe Biden and former President Donald Trump faced off in the first debate of the 2024 presidential campaign.
Here are five important things investors should know before starting the trading day.
The S&P 500 was little changed on Thursday, closing up 0.09% as investors awaited the latest inflation data. Meanwhile, the Nasdaq Composite Index rose 0.30%, while the Dow Jones Industrial Average only gained 36.26 points, or 0.09%. Major semiconductor stocks fell, with Micron shares down more than 7% and market benchmark Nvidia down 1.9%. Follow our live market updates:
A shopper carries an H&M bag in the Georgetown neighborhood of Washington, DC, USA, Thursday, May 30, 2024.
Al Drago | Bloomberg | Getty Images
A key economic indicator from the Federal Reserve released Friday morning showed inflation slowing to its slowest rate in more than three years in May. The Commerce Department reported that the core personal consumption expenditures price index, which excludes volatile food and energy items, rose just 0.1% seasonally adjusted and 2.6% from a year ago. The year-over-year rate was down 0.2% from April, both in line with Dow Jones forecasts.
A “Sale Pending” sign appears in front of a home for sale in Larkspur, California, on November 30, 2023.
Justin Sullivan | Getty Images
It’s the height of summer, but home prices may finally be starting to ease. Reports suggest price increases are shrinking and home sellers are starting to price a little lower. In the four weeks ending June 23, a typical home sold for just below asking price (0.3%) for the first time since the COVID-19 pandemic began, according to real estate brokerage Redfin. Supply is also starting to pick up, with active listings now 35% higher than the same period a year ago, after a significant decline in inventory. But home prices are still 47% higher than at the start of 2020, and the median sales price is five times the median household income.
The Walgreens logo appears on a truck semi-trailer in the Florida Keys, USA, May 7, 2024.
Jakub Polzycki | Nurphoto | Getty Images
Walgreens shares plunged 22% on Thursday after the company reported weaker-than-expected profits and sharply cut its full-year adjusted profit outlook. The retail pharmacy giant said it faces a “challenging” environment. “We had assumed there would be some consumer recovery in the second half of the year, and that hasn’t been the case,” CEO Tim Wentworth told CNBC. The results come as Walgreens continues efforts to simplify its U.S. health care portfolio and cut costs, including by closing underperforming U.S. stores.
A composite photo of Democratic presidential candidate US President Joe Biden and Republican presidential candidate former US President Donald Trump speaking during a presidential debate in Atlanta, Georgia, USA, on June 27, 2024.
Brian Snyder | Reuters
President Joe Biden and former President Donald Trump faced off in their first debate for the 2024 presidential election on Thursday. The two argued for 90 minutes, touching on a range of topics including the economy, age concerns and abortion. The debate took place as Trump faces two criminal charges for allegedly trying to overturn his loss to Biden in the 2020 election. However, after the debate ended, Biden’s campaign faced tough questioning, and worried Democratic campaign donors and fundraisers began voicing concerns about his disappointing performance less than 20 minutes into the debate.
—CNBC’s Hakyung Kim, Jeff Cox, Diana Orrick, Annika Kim Constantino, Dan Mangan, Kevin Brueninger, Christina Wilkie, Brian Schwartz, Rebecca Picciotto and Josephine Rozelle contributed to this report.
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