Here are the key news highlights that investors should be aware of as they kick off their trading day:

1. A Blend of Economic Data

Investors are watching Thursday’s Inflation announcement. All eyes are on the Producer Price Index for August after the latest Consumer Price Index report exceeded expectations. Market reaction to the CPI report was mixed; While the Dow index fell by 0.20%, this was led by the 5.7% decline in 3M shares.

By comparison, the S&P 500 gained 0.12% and the Nasdaq Composite gained 0.29%. Analysts surveyed by Dow Jones expect the August PPI, released on Thursday, to show a 0.4% increase in prices.

2. What causes inflation?

Consumers face increasing fuel and housing costs. The U.S. Labor Department’s August Consumer Price Index (CPI) report on Wednesday showed inflation was the highest monthly rate this year. The CPI, which measures the price of various goods and services, rose 0.6% for the month and 3.7% annually on a seasonally adjusted basis, according to the Labor Department.

The core consumer price index, which excludes food and energy costs and is tracked by Fed officials, was up 0.3% for the month and 4.3% from previous years. The data exceeded the expectations of analysts, who expected the CPI to rise significantly by 0.2% on the month and 4.3% annually. Economists state that although natural gas prices have increased, they expect this to be temporary.

3. Trading now

One of the most anticipated initial public offerings of the year is finally here. Arm will list on Nasdaq this Thursday. The chipmaker priced its initial public offering at $51 per share; this was at the upper end of the expected price of $47 to $51 per share. This measure brings Arm’s fully diluted market value (represented by restricted common stock) to more than $54 billion.

Arms is known for providing designs to technology companies including Apple, Google, Nvidia, Samsung, AMD, Intel and TSMC, and many of these companies have expressed interest in purchasing the offering.

4. Citi-regroup

On Wednesday, Citigroup CEO Jane Fraser announced plans to restructure the big bank. Fraser announced that Citigroup would be reorganized into five major businesses, all of which would report directly to him. He explained that this proposal aims to simplify the management level and speed up the decision-making process.

More versions are expected to be released as part of these changes, but the exact number has not yet been determined. Although Citigroup is the third-largest bank in the United States by assets, it faces problems recovering from losses from the 2008 financial crisis and dealing with a decline in stock prices.

5. Hot Hiring

Google, is reducing the number of people in its recruiting office as part of a broader effort to restart its hiring process in the coming months. The decision comes after Alphabet’s Google announced in January that it would cut 12,000 jobs, equivalent to 6% of its full-time workforce. Brian Ong, Google’s vice president of recruiting, shared the news with employees during a video conference on Wednesday.

Ong said the election was not easy and they did not want to debate it again this year. However, all of this is considered a necessary step for recruitment in the next three months.

Summary

Investors faced the main topics: analysis of Thursday’s inflation announcement, expectations for Arm’s $51-per-share IPO and major developments at Citigroup. Inflation continued to rise, Consumer prices increased by 0.6% and core CPI increased by 0.3% in August. Google is also reducing hiring as part of a broader hiring plan.

The post 5 Key Points to Be Aware of Ahead of Thursday’s Stock Market Opening first appeared on Business d'Or.