1. Losing week
Stock futures were slightly lower Friday morning as Wall Street heads for a losing week. Going into the day’s session, the Dow Jones Industrial Average and S&P 500 were down nearly 1% and 1.4%, respectively, for the week. The Nasdaq Composite has lost 2% in that time. Investors are concerned about the potential of more rate hikes from the Federal Reserve. Although the vast majority of Fed watchers expect rates to stay the same at the coming September meeting, they’re now placing roughly 1-to-2 odds that policymakers opt for a hike in November. Follow live market updates.
2. Sour Apple
Apple shares fell for a second day after several reports suggested that Chinese government workers could be banned from using iPhones. The stock closed more than 3% lower Thursday after a 4% drop on Wednesday. The Chinese government has not verified the Wall Street Journal and Bloomberg reports, but investors are concerned that Apple’s products could be part of the growing tensions between China and the United States. Greater China, including Hong Kong and Taiwan, is Apple’s third-largest market. It accounts for 18% of total revenue and is where the vast majority of Apple products are assembled.
3. Deal or no deal?
General Motors on Thursday proposed a new contract for employees represented by the United Auto Workers that would offer 10% wage increases for the majority of workers. Newer employees would be eligible for up to a 56% wage increase over the four years of the deal. The contract would be the largest four-year wage increase in decades. However, UAW President Shawn Fain said the offer was “insulting.” The proposal comes a week after the UAW filed unfair labor practice charges against GM and Stellantis, alleging the companies did not bargain in good faith or a timely manner. Detroit automakers hope to avoid a potentially costly strike before the union workers’ contracts expire on Sept. 14.
4. Back in court
Former FTX executive Ryan Salame pleaded guilty Thursday in New York federal court to campaign finance and money-transmitting crimes. He also agreed to forfeit more than $1.5 billion — which will be paid to the U.S. government — and pay $5 million to debtors of FTX. Salame admitted that he made political contributions totaling tens of millions of dollars in his own name using money that came from Alameda Research, FTX’s hedge fund arm. He said he did so, over the course of about a year, at the behest of then-FTX CEO Sam Bankman-Fried. Salame was released on bond and faces a maximum sentence of 10 years in prison.
5. Walmart wages
Walmart cut the starting pay for employees who stock shelves and pack online orders. The beginning wage is now about a dollar per hour less than it used to be. The retailer said it did not cut pay for current employees in those roles and some more experienced employees actually got raises. The company said it made the change to make starting pay consistent, whether an employee is a cashier or stocker. Walmart had raised pay for personal shoppers and stockers in March 2021, when e-commerce sales were soaring. Walmart is the biggest private employer in the U.S., which means economists and industry leaders look to it as a barometer for signs of inflation and a cooler labor market.
