Here are the most important news items that investors need to start their trading day:
1. After the rally, a rut
Last week’s rally is but a memory at this point. Stocks fell Tuesday after closing out last week’s otherwise positive frame with a Friday dud. Investors haven’t had much to work with since the data deluge last week that accompanied the Federal Reserve’s decision to hold rates steady after more than a year of hikes. On Wednesday, however, they should get more material as Fed Chairman Jerome Powell heads to Capitol Hill to testify in front of the House Financial Services Committee. That’s scheduled to begin at 10 am ET. Follow live market updates.
2. Modi in America
Indian Prime Minister Narendra Modi waves to supporters as he arrives at the Lotte New York Palace hotel in New York City, June 20, 2023.
Mike Segar | Reuters
Indian Prime Minister Narendra Modi is visiting the United States this week, meeting with a variety of officials and executives. On Tuesday, he met with Tesla CEO Elon Musk in New York. He will head to Washginton later, as he is set to be honored with a state dinner Thursday at the White House. There he’ll be joined by industry leaders such as Apple CEO Tim Cook, Google CEO Sundar Pichai, Microsoft CEO Satya Nadella and FedEx CEO Raj Subramaniam. There are plans in the works to have Modi meet with tech leaders Friday, as well, CNBC’s Seema Mody reported. Modi’s trip to the U.S. comes at a pivotal time. India has apparently passed China as the world’s most populous nation, while the Chinese economy is stagnating and U.S. companies look to gain a foothold with Modi’s government.
3. Biden labels Xi a dictator
U.S. President Joe Biden meets Chinese President Xi Jinping on the sidelines of the G-20 leaders’ summit in Bali, Indonesia, on Nov. 14, 2022.
Kevin Lamarque | Reuters
4. The next wave in the ESG fight
Rep. Andy Barr, R-Ky., speaks during a signing ceremony for a resolution that disapproves of a rule related to the “Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights, in the U.S. Capitol on Thursday, March 9, 2023.
Tom Williams | CQ-Roll Call, Inc. | Getty Images
House Republicans are gearing up for their next offensive against environmental, social and governance issues in investing. Rep. Andy Barr, R-Ky., is set to unveil a new bill intended to limit investing in ESG funds, which opponents have dubbed “woke.” ESG defenders say the strategy allows people to make money while investing in the social good. But Republicans and conservative Democrats say investment funds should only focus on maximizing returns for people. “Environmental, social and governance investing has become a cancer and a fraud within our capital markets, steering retail investors, sometimes unwittingly, into lower-performing, less diversified and higher-fee funds,” Barr told CNBC’s Emily Wilkins. The lawmaker’s bill could be part of a larger House GOP to target ESG investing next month.
5. (Somewhat) friendly competition
Ford CEO Jim Farley said his team was quick to jump at the chance to join EV-making rival Tesla‘s extensive charging network. “I have no problem being opportunistic when it comes to advantaging my customers,” Farley told CNBC’s Jim Cramer on Tuesday’s edition of “Mad Money.” Yet the Ford chief also had a little fun at the expense of Tesla’s planned Cybertruck, which he called a product for “Silicon Valley people.” “It’s like a cool high-end product parked in front of a hotel,” Farley said. “But I don’t make trucks like that. I make trucks for real people who do real work, and that’s a different kind of truck.”
– CNBC’s Tanaya Macheel, Seema Mody, Clement Tan, Emily Wilkins and Julie Coleman contributed to this report.
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