5 things to know before the stock market opens on Wednesday

Happy Wednesday. If you start seeing drones in the sky, chances are they’re part of your zipline delivery fleet.

Stock futures are rising this morning following a strong day on Wall Street.

Here are five important things investors need to know to start their trading day.

Government figures released yesterday showed that energy prices cooled in June, helping to curb overall inflation. Still, prices are higher than a year ago and could feel further upward pressure as the U.S. and Iran continue their dispute over the Strait of Hormuz.

Here’s what you need to know:

The Consumer Price Index recorded its biggest monthly decline since 2020. Stronger-than-expected print performance boosted stocks, with all three major averages closing higher yesterday. In remarks before the House Financial Services Committee on Tuesday, Federal Reserve Chairman Kevin Warsh called for a “regime change in policy” to combat inflation, which he described as an “unfair burden” and “tax” on Americans. However, the US has resumed attacks on Iran and the US Navy’s naval blockade continues. Tehran’s port is at risk of short-lasting inflation relief. U.S. Central Command announced this morning that U.S. forces had launched further attacks. Oil prices rose in yesterday’s trading even after President Donald Trump announced he would abandon plans to impose a 20% fee on cargo transiting the Strait of Hormuz. Follow us here for live market updates.

While the overall market is rising, IBM I was the big loser that day. The stock fell 25%, its worst day on record, after the company released weak preliminary results for the second quarter.

IBM reported adjusted earnings per share of $17.2 billion and revenue of $17.2 billion, compared with analyst estimates compiled by FactSet of $3.01 per share and $17.86 billion, respectively. CEO Arvind Krishna said the downturn was due to a shift in customer spending toward memory chips and other hardware rather than software and infrastructure.

Meanwhile, cybersecurity stocks rose yesterday after Mr. Krishna told CNBC’s Sara Eisen that cyber fear is a top priority for customers. cloud strike, Octa and netscope All companies posted double-digit percentage gains in Tuesday’s session.

morgan stanley Strong results continued this morning for major banks, reporting record revenue and profits for the quarter as revenue from their equity trading business rose nearly 70%. The bank reported earnings of $3.46 per share and revenue of $21.35 billion, easily beating Wall Street expectations of $2.94 per share and $19.64 billion.

As CNBC’s Hew Song points out, the artificial intelligence boom is boosting transactions and trading activity for major banks, including: goldman sachs and JP Morgan Chase. “We are in the middle of a supercycle of AI capital spending,” Goldman CEO David Solomon told analysts yesterday.

Billionaire investor Warren Buffett is increasing his donations. Berkshire Hathaway Yesterday, he announced a total of nearly $6 billion in donations to four family-related foundations. The Oracle of Omaha said his goal is to divest all of his stock “within about eight years.”

Notably, Buffett has excluded the Gates Foundation from his annual donations. The foundation, founded by Bill Gates and his then-wife Melinda French Gates, has long been the largest recipient of Mr. Buffett’s annual gifts to Berkshire.

Buffett made this call in an interview with CNBC’s Becky Quick. microsoft He added that the co-founder’s relationship with the late sex offender Jeffrey Epstein was “uncomfortable” but that people make mistakes. He said he had recently spent time with Gates in Omaha.

Have you ever wished the middle seat next to you was empty? united airlines Travelers are betting they will pay more to make that dream a reality.

As CNBC’s Leslie Josephs writes, the airline announced yesterday that the middle seat with tray table in row 1 on the A321XLR will be empty. Pricing for the seats, which also offer ample leg space, has not yet been revealed.

United Airlines said it may add more rows of this kind to its planes in the future. It’s the latest sign that airlines are racing to build premium add-ons to increase profits and attract high-income travelers.

The Supreme Court is asking Congress to expand the fiscal year 2027 budget by nearly 10% to strengthen security-related measures in the face of growing threats. Here’s what Justice Elena Kagan told a House subcommittee yesterday:

— CNBC’s Jeff Cox, Greg Iacrussi, Fred Imbert, Kevin Breuninger, Chloe Taylor, Spencer Kimball, Sean Conlon, CJ Haddad, Hu Song, Yun Lee, Samantha Subin, Alex Crippen, Leslie Josephs and Dan Mangan contributed to this report.

Luke Fountain helped produce this newsletter. Josephine Rozzelle edited this version.