A trader works on the floor of the New York Stock Exchange (NYSE) following a Fed rate announcement, in New York on July 27, 2022.
Brendan McDermid | Reuters
Here are the most important information investors need to start their trading day:
US stock markets were set for low aperture Thursday after the large rally on Wednesday. Investors are chewing up the latest round of earnings, which included Facebook parent Meta on Wednesday afternoon and NBCUniversal parent Comcast Thursday morning. The Federal Reserve decided on Wednesday to raise rates by three-quarters of a point, in line with expectations, to combat a four-decade inflation spike. Fed Chairman Jerome Powell also indicated that the central bank may slow the pace of its rate hikes.
Federal Reserve Board Chairman Jerome Powell speaks during a press conference following a two-day meeting of the Federal Open Market Committee (FOMC) in Washington, July 27, 2022.
Elizabeth Frantz | Reuters
Terminal A at LaGuardia International Airport for JetBlue and Spirit Airlines in New York.
Leslie Joseph | CNBC
It didn’t take long for things to fall into place for JetBlue after Spirit scuttled its deal with another low-cost airline, Frontier. On Thursday morning, Spirit and JetBlue said they had reached an agreement. If the acquisition is completed, the combination of JetBlue and Spirit would create the fifth largest carrier in the United States. But the deal faces significant regulatory hurdles as the Biden administration pushes a hard line on mergers and acquisitions. CNBC airlines reporter Leslie Josephs break it down here.
Facebook parent Meta announced earnings after the bell on Wednesday, and they weren’t pretty. Financial results exceeded expectations in just about every area. Its metaverse and virtual reality unit suffered a big loss of $2.8 billion in the second quarter, and it is expected to show even weaker revenue in the third. The biggest immediate concern, however, is ad revenue. And just like social media rivals Instantaneous and TwitterMeta, which also owns Instagram, said a slowing economy is affecting advertising activity. “It’s always difficult to predict the depth or duration of these cycles, but I would say the situation looks worse than a quarter ago,” CEO Mark Zuckerberg told analysts on a call.
U.S. Senator Joe Manchin (D-WV) walks to the Senate at the U.S. Capitol in Washington, June 7, 2022.
Jonathan Ernest | Reuters
Washington is notoriously slow to get things done, especially when Congress is involved. But sometimes there are also surprises, like business out of nowhere Wednesday night between Senate Majority Leader Chuck Schumer, DN.Y., and conservative Democratic West Virginia Sen. Joe Manchin. Just weeks ago, Manchin balked at a reconciliation package due to concerns about inflation. The new measure, which is designed to pass the Senate by a simple majority, includes provisions on health care and climate change, as well as deficit reduction (including a minimum corporate tax). CNBC’s Emma Newburger explains the climate provisions of the bill here.
– CNBC’s Samantha Subin, Carmen Reinicke, Patti Domm, Leslie Josephs, Emma Newburger, Jonathan Vanian, Kevin Breuninger and Jordan Novet contributed to this report.