5 things to know before the stock market opens on Friday 12 August

Traders on the floor of the NYSE, August 11, 2022.

Source: NYSE

Here are the key news that investors need to start their trading day:

1. Markets are looking up

US stock futures pointed to a rally on Friday morning, a day after the three major indexes posted mixed results. On Thursday, the Dow ended slightly positive, while the S&P 500 and technology-heavy Nasdaq fell after yet another round of inflation data showed that price increases slowed somewhat. But one month of data does not constitute a trend, and inflation remains high even as gas prices fall from record highs in June. The Federal Reserve is still expected to take an aggressive stance against rising prices, and is expected to raise interest rates again in September. Next week, markets will get even more information on how inflation is affecting consumers, as Walmart, Target, Home Depot and Lowe̵[ads1]7;s are set to report quarterly results.

2. Dems are ready to pass their big bill

Speaker of the United States House of Representatives, Nancy Pelosi, speaks during a bill ceremony for S. 3373, SFC Heath Robinson Honoring Our PACT Act of 2022 at the US Capitol in Washington, DC on August 9, 2022.

Sarah Silbiger | Reuters

The House on Friday is set to pass the climate, health and corporate tax legislation now known as the Inflation Reduction Act largely along party lines. The law is intended to give a boost to the electric car industry, including on the climate side, while at the same time strengthening Medicare and Obamacare. The bill is far less than the first proposals. Still, it represents a victory for majority Democrats, who have struggled for months to pass several of President Joe Biden’s agenda items while negotiating with centrist members of his own party, Sens. Joe Manchin and Kyrsten Sinema. Passage in the House will send the bill to Biden for his signature.

3. Rivian estimates a larger loss for the year

Employees work on an assembly line at the startup Rivian Automotive’s electric car factory in Normal, Illinois, on April 11, 2022.

Kamil Krzaczynski | Reuters

Electric car startup Rivian said it now expects a bigger loss for the year than it had previously forecast as it faces supply chain issues and other headwinds facing the wider electric car industry. It was a loss of 1.7 billion dollars for the second quarter. The company, which counts Amazon as an investor, stuck to its forecast of about 25,000 deliveries this year, but also said it would scale back its capital spending. As of June 30, Rivian had around $15.5 billion in cash on hand. Electric pickup maker R1 said it is confident it has enough cash to start producing its smaller R2 vehicle platform by 2025.

4. CDC relaxes Covid guidelines

Luca Moore, 11 months, receives a vaccine against the coronavirus disease (COVID-19) as his mother Dr. Danielle Smith holds him at Northwell Health’s Cohen Children’s Medical Center in New Hyde Park, New York, U.S., June 22, 2022.

Shannon Stapleton | Reuters

The Covid-19 pandemic is far from over. Tens of thousands of people are infected every day in the United States. But the disease poses a less serious health threat, the US Centers for Disease Control and Prevention said Thursday, as it eased its guidelines for battling the virus. The agency said there are high levels of immunity in the population, as well as a number of vaccines and other treatments for it. Among the changes in the CDC’s recommendations: No more testing in schools for people who do not have symptoms, and unvaccinated people will no longer need to be quarantined if they have been exposed to the virus.

5. DOJ wants to release Trump search warrant

U.S. Attorney General Merrick Garland speaks about the FBI search warrant served at former President Donald Trump’s Mar-a-Lago estate in Florida during a statement from the U.S. Department of Justice in Washington, U.S., Aug. 11, 2022.

Evelyn Hockstein | Reuters

The historic showdown between the US Department of Justice and former President Donald Trump has entered an exciting new phase. Attorney General Merrick Garland said Thursday that the DOJ had filed a motion to quash the search warrant FBI agents executed earlier this week at Trump’s private Mar-a-Lago club in South Florida. Agents reportedly removed several boxes and documents from the resort. The New York Times and The Washington Post, both citing background sources, reported that US officials were looking for sensitive documents with national security implications. The former president, who has referred to various investigations swirling around him as a “witch hunt,” said late Thursday that he would not oppose the release of the warrant. Trump’s lawyers also have a copy of the warrant, as well as a list of items taken in the search, but they have not released any of the documents. The manifesto, if released, would likely be heavily redacted if classified material was on the list.

– CNBC’s Samantha Subin, John Rosevear, Spencer Kimball and Dan Mangan contributed to this report.

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