Here are five key things investors need to know to start the trading day:
1. Friday frights
Stock futures fell on Friday as traders awaited the latest reading of the Federal Reserve’s favorite inflation gauge: the personal consumption expenditures price index. Nasdaq 100 futures dropped 267.75 points, or 1.25%, while S&P 500 futures slid 0.75% and futures tied to the Dow Jones Industrial Average dropped 0.55%. Follow live market updates.
2. Shutdown still looms
U.S. Speaker of the House Mike Johnson (R-LA) speaks to reporters outside of the House Chambers in the U.S. Capitol on December 19, 2024 in Washington, DC.
Kevin Dietsch | Getty Images
A House Republican deal for a three-month federal funding plan endorsed by President-elect Donald Trump failed Thursday night, as a partial shutdown is set to begin late Friday night. The plan would have suspended the U.S. debt ceiling for two years, but a total of 38 Republicans voted against the bill created by their own party’s leaders. That suspension was a surprising last-minute addition to the proposal, as increasing the debt ceiling typically requires months of negotiations. Trump and Tesla CEO Elon Musk harshly criticized a prior funding proposal Wednesday, sending Republicans scrambling on Thursday for a replacement plan.
3. Primetime strike
Amazon workers walk the picket line outside an Amazon facility in the City of Industry, California on December 19, 2024.
Frederic J. Brown | AFP | Getty Images
Amazon workers across seven facilities in New York, Georgia, California and Illinois went on strike Thursday, to pressure Amazon to the negotiating table and avoid disruptions during the peak of the holiday shopping season. The strike was organized by members of the Teamsters to fight for better benefits, higher wages and safer working conditions. The union said Thursday’s campaign is the largest strike against Amazon in American history. But in a statement to CNBC, an Amazon spokesperson claimed the protesters at the sites are “almost entirely outsiders.” The Teamsters website says that nearly 10,000 Amazon workers have joined the organization, which represents less than 1% of the company’s workforce as of Dec. 31, 2023.
4. Goodbye discounts
The Puerto Venecia shopping center is packed with people during the Black Friday sales week, Zaragoza, Spain.
Vw Pics | Universal Images Group | Getty Images
Nike on Thursday reported quarterly earnings that beat Wall Street expectations, while revenue and profit were down year over year. New CEO Elliott Hill blamed deep discounting for declining revenue, which fell to $12.35 billion, about 8% down from $13.39 billion a year earlier. Hill and finance chief Matt Friend said the retailer plans to return its online business to a full-price model but will need to first aggressively liquidate old inventory through “less profitable channels.” The company expects gross margins to be down between 3 and 3.5 percentage points during the holiday quarter.
5. Deck the food halls
Neon sign of The Cheesecake Factory restaurant glowing at dusk, Westfield Mall, San Jose, California, December 2, 2023.
Smith Collection | Gado | Archive Photos | Getty Images
Restaurants and bars are taking up more square footage in malls in the hopes that diners will shop after eating. Yelp found that 17 of the 25 most popular mall brands, based on consumer interest, were restaurants, according to a report published in October. The Cheesecake Factory found itself at the top of the list, along with other familiar names including Panera Bread and Olive Garden. But many malls also offer a much wider selection of eateries and refreshments than before, from regional restaurants to local chefs and emerging bubble tea chains. Specialty options, including the Italian chain Eataly, have spearheaded malls’ transition away from food courts and into a more upscale alternative, food halls.
— CNBC’s Sean Conlon, Christina Wilkie, Ashley Capoot, Gabrielle Fonrouge and Amelia Lucas contributed to this report.
