US stock futures climb, as Trump Media and Tesla surge in early trading
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(WASHINGTON) — As former President Donald Trump declared victory in the U.S. presidential election early Wednesday, shares of his media company, Trump Media & Technology, surged about 34% to about $45.49 in pre-market trading.
With U.S. markets yet to open, early indicators appeared to show Wall Street’s bullish view of a second term for Trump. As votes were still being, Dow futures were up, the U.S. dollar was strengthening and international markets were mixed.
Dow Jones Industrial Average futures had surged about 2.9% by 6 a.m. in New York, having risen briskly from the 1.7% gain they had logged when former President Donald Trump took the stage in Florida at about 2 a.m.
S&P 500 futures traded up about 2.2% early Wednesday, while futures for the tech-heavy Nasdaq market were up about 1.7%. Shares of Tesla, the electric-vehicle company headed by Trump ally Elon Musk, spiked about 14.5% in pre-market trades.
Trump owns a 57% stake in the Trump Media, which trades under the DJT ticker and is the parent of social media startup Truth Social. The company late Tuesday reported its third quarterly loss since going public in March.
Markets in the U.S. had surged on Tuesday, led by the Nasdaq’s 1.4% rise.
As Trump walked onto the stage in Florida early Wednesday, the dollar was strengthening. The U.S. Dollar Index traded up about 1.4% at 104.75, touching a level it hadn’t seen since early August. Yields on 10-year and 2-year Treasury bonds had also climbed overnight.
Trading in Asia was mixed Wednesday as international markets digested the election results. Japan’s Nikkei closed up 2.61% for the day, while Shanghai closed nearly flat, slipping just 0.09%.
Hong Kong’s Hang Seng Index fell, dropping 2.23% by the close after opening below Tuesday’s close.
The United Kingdom’s FTSE 100 Index climbed early Wednesday, rising about 1.43% moments after open. Germany’s DAX saw a similar rise, climbing about 1.3% in morning trading.
(NEW YORK) — As fast food chains continue to drop prices on popular menu items in hopes of enticing hungry customers, Popeyes is entering the arena with a new $5 deal.
The popular fried chicken chain announced new value offers on Monday, which includes an order of three pieces of its signature bone-in chicken for just $5.
The fast food franchise, which first started in New Orleans in 1972, timed the news in tandem with National Chicken Month.
“We first saw the ‘Value Wars’ taking off early in the summer, as consumers were looking for ways to indulge in their favorite foods, without the high price tag,” the company wrote in a blog post Monday. “This made our team think, how can we continue to serve our food, without compromising on the quality we are known for, but at a price our customers will be happy with?”
“This new promotion celebrates what Popeyes does best — Fried Chicken,” the company continued. “Each piece is expertly marinated in Popeyes signature blend of savory Louisiana herbs and seasonings, then battered in a crunchy southern coating and fried to golden brown perfection.”
According to Popeyes, the $5 deal is available at participating locations nationwide in restaurant, through the Popeyes app, or online.
“As consumers look for more ways to enjoy their favorite meals without breaking the bank, Popeyes is excited to join this conversation centered around guest satisfaction,” the company wrote.
The news comes on the heels of McDonald’s extending its $5 value meal and similar offers from competitors like Wendy’s, Burger King and even Chili’s.
(NEW YORK) — Inflation has loomed over the U.S. economy like a movie villain, haunting grocery store trips and gas runs. While costs remain much higher than they were a few years ago, those rapid price increases have mostly vanished.
Inflation stands at its lowest level in more than three years, hovering right near the Federal Reserve’s target rate of 2%, U.S. Bureau of Labor Statistics data this week showed.
Not long ago, a once-in-a-century pandemic upended the economy, sending millions nationwide into lockdown and snarling the global supply chain. Meanwhile, trillions of dollars in government support helped Americans spend amid the calamity.
A resulting imbalance between supply and demand sent prices soaring. The Russia-Ukraine war exacerbated the problem, causing gas and food shortages. Within a few years, the massive issue has largely been resolved.
“This was the highest inflation over the longest period that we’ve seen in decades. It was serious,” Claudia Sahm, chief economist at New Century Advisors and a former Fed official, told ABC News.
Here’s what to know about how inflation has come back down:
Repaired supply chain
During the pandemic, factories worldwide shut down. Workers stayed home for fear of getting sick. Freight ships waited off the coast of overwhelmed U.S. ports.
The pandemic clogged the global supply chain, imposing shortages for everything from cars to lumber to exercise equipment. Meanwhile, people stuck at home focused their spending on those exact sorts of products, since COVID-19 shutdowns prevented them from going out to eat or taking a vacation.
When too much money chased after too few products, prices climbed.
“The pandemic was the root of all evil in the economy,” Sahm said.
When lockdown rules were lifted, demand for goods slowed and manufacturers revved up production as workers returned. The nation’s ports loosened up the backlog of container ships, cutting freight prices dramatically and lowering costs for retailers.
Economists disagree over the role that elevated corporate profits played in driving inflation, as some say they account for more than half of the increase in prices while others say they have caused little or none of the hikes.
In some cases, the easing of supply chain blockages took months or even years to work their way through the global economy.
Take car prices, for example. When semiconductor production slowed nearly to a halt, carmakers lost out on a part necessary for production. Car prices skyrocketed, sending many consumers to the used car market. In turn, used car prices soared. So did costs for car repairs and, as a result, car insurance.
“Those have all now unwound,” William English, a professor of finance and former economist at the Federal Reserve, told ABC News.
Interest rate hikes
In response to rising inflation, the Fed embarked upon an aggressive series of interest rate hikes. Beginning in 2021, the Fed rapidly hiked interest rates, eventually putting borrowing costs at their highest level in more than two decades.
In contrast with the supply chain fixes, the interest rate hikes aimed to address the other side of the equation driving inflation: excess demand.
In March 2020, then-President Donald Trump signed into law a $2.2 trillion economic stimulus package, including direct payments of $1,200 and expanded unemployment insurance, among other measures. Months later, in December, Trump enacted a second $900 billion round of government support.
The following year, President Joe Biden signed a $1.9 trillion economic stimulus package of his own, including another round of $1,400 direct payments as well as an expansion of the child tax credit.
The government support helped buoy demand, even as the pandemic posed major challenges for the supply chain and decimated the service economy made up of sectors like restaurants and hotels.
“Now you have money, and nowhere to go and buy things,” said Hernan Moscoso Boedo, an economist at the University of Cincinnati.
By raising interest rates, the Fed made borrowing more expensive for consumers and businesses alike, making it difficult for them to take on loans for big purchases or large investments.
“Over the last few years, we’ve seen less money in the market because of the interest rates,” Boedo said, adding that the reduction of demand has helped ease prices.
Last month, the Fed reversed course, cutting interest rates by half a percentage point and dialing back the fight against inflation. While interest rates remain high relative to recent decades, the landmark shift suggests that the Fed considers the end of the inflation battle to be in sight.
(NEW YORK) — Much like its fellow fast food competitors slashing prices and offering special discounts to lure in customers, Arby’s is adding a new deal to its menu with its Double the Meats Meal.
For just $7, the new Double the Meats Meal includes a Double Roast Beef or Double Beef ‘N Cheddar sandwich, along with a medium fry and medium drink.
The Double Roast Beef sandwich boasts two times the amount of slowly roasted, thinly sliced-to-order, signature roast beef piled high on a toasted sesame seed bun.
The Double Beef ‘N Cheddar also piles on a double portion of roast beef, topped with cheddar sauce and zesty Red Ranch, served on a toasted onion roll.
The new deal comes on the heels of similar promotions and discounts from Arby’s competitors. In June, McDonald’s launched a $5 Meal Deal that includes a McDouble or McChicken sandwich, small french fries, a four-piece Chicken McNuggets and a small soft drink. Earlier this month, the fast food giant extended the popular deal through December.
Several other fast food chains including Burger King, Wendy’s, Starbucks and Taco Bell have rolled out comparable discounts, hoping to entice customers looking to stretch their dollars as much as possible.
