Market Rebound: Stock futures rose on Thursday following a positive trading day on Wednesday for the major indexes, driven by encouraging U.S. inflation data. The Dow Jones gained 0.61%, the S&P 500 increased by 0.38%, and the Nasdaq Composite edged up by 0.03%. Inflation slowed to 2.9% in July, the lowest since 2021, possibly supporting a Federal Reserve interest rate cut in September.
Strong Consumer Sentiment: Walmart's Q2 earnings report exceeded expectations, signaling that the American consumer remains strong. Despite a focus on essentials over discretionary items, Walmart raised its full-year sales forecast, indicating no further weakening in consumer health.
Lower Drug Prices: The Biden administration announced successful negotiations to lower the prices of 10 high-cost prescription drugs covered under Medicare Part D. These price reductions are expected to save the U.S. government $6 billion in 2026 and reduce out-of-pocket costs for Medicare enrollees by $1.5 billion.
Cisco Layoffs: Cisco announced a 7% reduction in its global workforce as part of a restructuring plan that will incur $1 billion in pre-tax charges. This is the second major round of layoffs for Cisco, following a 5% workforce reduction earlier in the year.
Mars Acquisition: Mars Inc. is acquiring snack company Kellanova, which owns brands like Pringles and Cheez-Its, for $36 billion. The acquisition, priced at $83.50 per share, represents a 12% premium over Kellanova’s previous closing price. The deal is expected to finalize in the first half of 2025.
Strong Consumer Sentiment: Walmart's Q2 earnings report exceeded expectations, signaling that the American consumer remains strong. Despite a focus on essentials over discretionary items, Walmart raised its full-year sales forecast, indicating no further weakening in consumer health.
Lower Drug Prices: The Biden administration announced successful negotiations to lower the prices of 10 high-cost prescription drugs covered under Medicare Part D. These price reductions are expected to save the U.S. government $6 billion in 2026 and reduce out-of-pocket costs for Medicare enrollees by $1.5 billion.
Cisco Layoffs: Cisco announced a 7% reduction in its global workforce as part of a restructuring plan that will incur $1 billion in pre-tax charges. This is the second major round of layoffs for Cisco, following a 5% workforce reduction earlier in the year.
Mars Acquisition: Mars Inc. is acquiring snack company Kellanova, which owns brands like Pringles and Cheez-Its, for $36 billion. The acquisition, priced at $83.50 per share, represents a 12% premium over Kellanova’s previous closing price. The deal is expected to finalize in the first half of 2025.