Here are the most important news, trends and analysis that investors need to start their trading day:
1. Dow and S&P 500 futures are flat ahead of key inflation data
A trader works on the trading floor at the New York Stock Exchange (NYSE) in New York, August 5, 2021.
Andrew Kelly | Reuters
Futures contracts tied to the Dow Jones Industrial Average and S&P 500 hovered around the flatline Wednesday morning, as traders awaited the release of key inflation data. Dow futures gained just 24 points, or 0.1%, while S&P 500 futures lost 0.1%. Nasdaq 100 futures, meanwhile, slid nearly 0.4%.
The Labor Department’s consumer price index for July is slated for release at 8:30 a.m ET. Economists polled by Dow Jones expect the index to have risen 0.5% last month, or 5.3% on a year-over-year basis. If consumer prices rose more than expected, it could put pressure on stocks and send Treasury yields higher.
2. Senate passes framework of $3.5 trillion budget plan
Senate Majority Leader Charles Schumer, D-N.Y., right, and Sen. Bernie Sanders, I-Vt., are seen in the U.S. Capitol on Monday, August 9, 2021.
Tom Williams | CQ-Roll Call, Inc. | Getty Images
The Senate on Wednesday morning approved a budget resolution, marking the first step taken by Democrats toward passing a $3.5 trillion spending plan. The resolution was passed with a 50-49 vote along party lines. Republican have united against the proposal as well as the tax hikes Democrats plan to use to pay for it. The measure — which directs Senate committees to craft a bill that includes spending on climate initiatives, paid leave and other items in the Democratic agenda — comes a day after the Senate passed a $1 trillion bipartisan infrastructure bill.
3. Coinbase posts big earnings beat, shares rise
Coinbase Founder and CEO Brian Armstrong attends Consensus 2019 at the Hilton Midtown on May 15, 2019 in New York City.
Steven Ferdman | Getty Images
Cryptocurrency exchange Coinbase posted much better-than-expected results for the second quarter. Coinbase reported Tuesday afternoon an adjusted profit of $3.45 per share on revenue of $2.23 billion. Analysts polled by Refinitiv expected earnings per share of $2.33 on revenue of $1.78 billion. Shares of Coinbase climbed more than 2% in premarket trading. The company said monthly transactions grew by 44% to 8.8 million on a quarter-over-quarter basis, while trading volume jumped by 38% to $462 billion from the previous quarter.
4. White House to call on OPEC and allies to hike oil production
U.S. President Joe Biden discusses the U.S. Senate’s passage of the $1 trillion bipartisan infrastructure bill, during a meeting in the State Dining Room at the White House in Washington, August 10, 2021.
Evelyn Hockstein | Reuters
The Biden administration will call on OPEC and its oil-producing allies to increase crude production in order to combat rising gas prices, according to a letter obtained by CNBC. The White House also said the group’s agreement last month to boost production by 400,000 barrels per day starting in August is “simply not enough” during a “critical moment in the global recovery.” According to AAA, U.S. gas prices are up on average by just $1 per gallon over the past year. In May, the national average topped $3 per gallon for the first time since 2014.
5. More than $600 million stolen in massive crypto theft
cyano66 | iStock | Getty Images
More than $600 million in digital currency was recently stolen, potentially marking one of the biggest cryptocurrency thefts ever. The heist was carried out after hackers exploited a vulnerability in Poly Network, a platform that connects different blockchains so they can work together. The attack was disclosed Tuesday by Poly Network on Twitter. “Law enforcement in any country will regard this as a major economic crime ant you will be pursued,” Poly Network said in a tweeted statement.