5 things to know before the stock market opens Thursday
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Here are the most important news items that investors need to start their trading day:
1. The pause is here
The Federal Reserve on Wednesday held its benchmark rate steady after more than a year of increases, but the central bank suggested more hikes could come this year. The next Fed meeting is in six weeks, and Chairman Jerome Powell said the next rate decision is still up in the air. Markets were mixed afterward, as the Dow fell while the S&P 500 and the Nasdaq hit their highest levels since April of last year. It was also the S&P 500's fifth consecutive positive trading day, its longest such streak since November 2021. Follow live market updates.
2. An IPO on the menu
A person departs a Cava restaurant chain location in Pasadena, California, Feb. 6, 2023. Mario Tama | Getty Images News | Getty Images
Cava , the Mediterranean fast-casual restaurant chain that's been compared to Chipotle , is set to make its debut on public markets Thursday. The company said Wednesday night it had priced its offering at $22 a share, up from the already-increased range of $19 to $20 that Cava projected Monday. The pricing values Cava at about $2.45 billion. The stock will trade under the symbol CAVA. A successful debut for Cava could be a good sign for a moribund market for initial public offerings that has taken a hit over the past year-plus amid higher inflation and rate hikes.
3. China's economic muddle
Employees work on the assembly line of the J7 truck at a factory under FAW Group on June 14, 2023, in Changchun, Jilin province. China News Service | China News Service | Getty Images
The economic signs coming out of China aren't great, as its post-"zero Covid" recovery stalls out. On Thursday, the country released a wave of lackluster data, including that the unemployment rate for workers aged 16 to 24 rose to a record 20.8% in May. Retail sales, industrial production and fixed asset investment all grew at slower rates than expected. While China's statistics bureau said the data represented continued momentum for the recovery, it also acknowledged that certain international challenges could pressure the economy, but didn't elaborate beyond that. China's central bank, meanwhile, is in rate-cutting mode as it looks to juice growth.
4. In the rough
PGA Tour Commissioner Jay Monahan speaks during a press conference prior to the TOUR Championship at East Lake Golf Club on August 24, 2022 in Atlanta, Georgia. Cliff Hawkins | Getty Images
It was just last week that the PGA Tour and its Saudi-funded rival, LIV Golf, announced a deal that rocked the sports world. Since then, there have been plenty of twists and turns, including the sudden leave of absence taken by PGA Tour Commissioner Jay Monahan over an unspecified health matter. Senators have opened probes while urging the Justice Department to look into the agreement, which has yet to fully take shape. CNBC's David Faber, meanwhile, reported that PGA Tour players who had previously missed out on big LIV paydays may be looking to hire a bank to advise them on compensation if the deal closes. PGA Tour players, meanwhile, are in Los Angeles for the U.S. Open, which begins Thursday.
5. Putin's mercenary problem
Russian President Vladimir Putin makes a statement after the meeting with participants of the Eurasian Intergovernmental Council and the Council of CIS Heads of Government meeting, in Sochi, Russia June 9, 2023. Ramil Sitdikov | Reuters
Source: CNBC
