Pre-Market Stock News: August 10, 2023

charismaenigma
Aug 10, 2023
4 min read

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Stock Market News: What You Need to Know

The stock market is always changing and evolving, and it can be hard to keep up with all the news and events that affect your investments. That’s why I’ve compiled some of the most important and relevant stories from the past week, so you can stay informed and make smart decisions.

U.S. Stocks Fall Ahead of Inflation Report

The U.S. stock market ended lower on Wednesday, Aug. 9, 2023, as tech stocks led the decline ahead of a key consumer inflation report due on Thursday. The Dow Jones Industrial Average fell 0.5%, the S&P 500 dropped 0.7%, and the Nasdaq Composite slid 1.2%. The tech sector was the worst performer, as investors worried that higher inflation could hurt the growth prospects of high-flying companies 1.

The market is closely watching the July Consumer Price Index (CPI) report, which is expected to show a 0.5% increase in headline inflation and a 0.4% rise in core inflation, excluding food and energy prices 2. The CPI data will provide clues on whether inflation is transitory or persistent, and how the Federal Reserve might react to it. The Fed has maintained that inflation is largely temporary and that it will keep its easy monetary policy until the economy achieves its goals of full employment and stable prices 3.

However, some investors are concerned that inflation could prove to be more durable and force the Fed to taper its bond-buying program and raise interest rates sooner than expected. Higher interest rates could weigh on the valuations of growth stocks, which tend to benefit from low borrowing costs and future earnings potential 4.

European Stocks Rally on Positive Sentiment

European stocks closed higher on Monday, Aug. 7, 2023, as investors shrugged off worries about the delta variant of Covid-19 and focused on positive economic data and earnings reports. The Stoxx Europe 600 index gained 0.7%, reaching a new record high 5.

The market sentiment was boosted by a survey that showed that investor confidence in the eurozone rose to its highest level since February 2018, despite the surge in coronavirus cases and lockdown measures in some countries 6. The Sentix index, which measures expectations and current conditions, jumped to 29.8 in August from 29.5 in July, beating analysts’ forecasts of 28.5.

The survey also indicated that investors were optimistic about the global economic recovery, as the world index climbed to 32.9 from 31.1 in July. The survey results suggested that investors were not too worried about the impact of the delta variant on growth, as vaccination rates increased and fiscal and monetary stimulus supported demand.

WeWork Raises Doubts About Its Future

WeWork, the troubled office-sharing company that went public via a merger with a special purpose acquisition company (SPAC) in March 2023, reported its second-quarter results on Wednesday, Aug. 9, 2023, and raised doubts about its ability to continue as a going concern.

The company said that it had a net loss of $682 million in the second quarter, compared with a net loss of $1.06 billion in the same period last year. Its revenue fell 20% year-over-year to $593 million, as occupancy rates declined due to the pandemic. The company also said that it had $2.6 billion of cash and cash equivalents at the end of June, down from $4 billion at the end of March.

WeWork also warned that it faced “significant challenges” and “substantial doubt” about its future viability, citing uncertainties related to Covid-19, its ability to achieve profitability, its debt obligations, and potential litigation. The company said that it was working on improving its cost structure, increasing its membership base, and enhancing its product offerings.

WeWork’s shares fell more than 10% on Wednesday after the earnings release. The company’s valuation has plummeted from $47 billion in January 2019 to $9 billion in March 2023 when it merged with BowX Acquisition Corp., a SPAC backed by venture capitalist Chamath Palihapatiya. The company’s IPO plans were scrapped in September 2019 after revelations of governance issues, financial losses, and questionable business practices.

Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday: This article lists some of the stocks that are experiencing significant price changes before the market opens, based on earnings reports, analyst ratings, news events, and other factors. Some of the top gainers include 180 Life Sciences (ATNF), Ebet (EBET), and Tilray (TLRY), while some of the top losers include Coinbase (COIN), Bumble (BMBL), and FuboTV (FUBO).
Why Is 180 Life Sciences (ATNF) Stock Up 38% Today?: This article explains why ATNF stock is soaring on Wednesday, as the company announced positive results from a phase 2b/3 clinical trial of its lead drug candidate for treating fibrosis and inflammation. The company said that the drug met its primary endpoint of reducing skin thickening in patients with systemic sclerosis, a rare autoimmune disease.
Why Is Ebet (EBET) Stock Up 45% Today?: This article discusses why EBET stock is surging on Wednesday, despite the lack of any company-specific news. The article suggests that the stock is benefiting from the hype around online gambling and gaming stocks, as well as the recent legalization of sports betting in Canada.