• A mixed rollercoaster session. Stocks on Tuesday closed mixed as investors await the consumer inflation report. The S&P 500 finished the day higher as well as the NASDAQ Composite, but the Dow Jones closed in the red. 
• The consumer inflation reading is TODAY at 8:30AM ET. August's Consumer Price Index (CPI) reading may provide some clues on recession risks after the monthly jobs report did little to indicate how much rate cuts would be from the Feds. This will be one of the most important data points that will shape future Federal Reserve interest rate policy.
• Critical date this week to gauge Fed interest moves. The CPI update and Thursday's wholesale inflation reading are the last two inflation inputs before Fed policymakers meet on Sept. 17. "We expect the August CPI report to continue the good news on inflation," Bank of America economists Stephen Juneau and Jeseo Park wrote in a preview ahead of the report. "The data should strengthen the case for a September cut."
• Apple shares sank. The iPhone maker saw its shares drop after the company lost an EU court battle over a $14 billion tax bill. The defeat came just one day after its iPhone 16 launch disappointed on the AI side. 
• Oracle shares jumped. Oracle saw its stock skyrocket more than 10% after its earnings topped estimates, thanks to cloud services demand.
• Disney and DirecTV are still in a dispute. A contract dispute between Disney and DirecTV still has not reached a conclusion after the media giant pulled its owned and operated channels, including ESPN and ABC, off DirecTV last week This has affected the start of the NFL season, including the first Monday Night Football game, in addition to college football.
• Oil prices sank. Oil's price went lower after oil alliance OPEC lowered its demand growth forecast in 2024 and 2025. OPEC cut its 2025 global demand growth estimate to 1.74 million bpd from 1.78 million bpd. West Texas Intermediate slid more than 3% to near $66 per barrel. Brent also fell to trade below $70 per barrel, settling at its lowest level since December 2021.
• Bitcoin rebounded. Bitcoin jumped Monday evening and topped $57,000. The current price is still over $57,000.
• Presidential nominees Donald Trump and VP Kamala Harris in their first debate. Tuesday marked the first time Trump and Harris had a presidential debate. The month leading into a presidential election is usually volatile for stocks.

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Recent economic data such as a weak labor market is pointing towards a rate cut by the Fed's next policy meeting later this month.

"The time has come for policy to adjust."

-Fed Chair Jerome Powell at the Fed's annual economic symposium in August.

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In the Spotlight

BMW and Ford to Recall Thousands of Vehicles

BMW Korea and Ford Sales & Service Korea will voluntarily recall over 31,279 vehicles due to faulty components according to the transport ministry. BMW will recall 2,787 vehicles across 13 models, including the BMW 520i, due to a malfunction in the advanced steering assistance system. 21,139 vehicles across 15 models, including the Mini Cooper D 5-door, will be recalled due to the potential risk of fire caused by coolant leaks in the exhaust gas recirculation cooler.

New Starbucks CEO Outlines Plans for the Company

Starbucks CEO Brian Niccol says he will focus on improving the chain’s U.S. business in his early days on the job before he moves to fix its issues abroad. His plans were revealed in an open letter published on Tuesday. ″… In some places — especially in the U.S. — we aren’t always delivering,” Niccol wrote in the open letter addressed to customers, employees and stakeholders. “It can feel transactional, menus can feel overwhelming, product is inconsistent, the wait too long or the handoff too hectic. These moments are opportunities for us to do better.” The CEO outlined four areas for improvement: the barista experience, morning service, its cafes and the company’s branding.

Sony Unveils Upgrade to its PlayStation 5

On Tuesday Sony announced the PlayStation 5 Pro, an upgraded version of its gaming console that will launch on Nov. 7 for $700. Last month the company reported that it sold 2.4 million units of its PlayStation 5 console in the fiscal first quarter, down from 3.3 million in the same period a year ago.

The PS5 Pro will have an upgraded graphics card with 67% more compute units than the current standard PS5 model, Sony said. This will allow for up to 45% faster rendering of gameplay. Sony also touted new artificial intelligence capabilities that upscale graphics with sharper image clarity and more detailed visuals. The PS5 Pro features “advanced” ray tracing, a technique in computer graphics that simulates how light bounces off reflective surfaces.