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5 things to know before the stock market opens Tuesday

Stock futures fall Tuesday as disappointing China data dampens sentiment

Here are the most important news items that investors need to start their trading day:

1. Global sentiments fall

Stock futures were down Tuesday morning despite coming off a winning session led by Nvidia. The chip maker closed up 7.1% on Monday, leading a surge for chip stocks across the board. But markets worldwide fell Tuesday following disappointing economic data out of China and a surprise rate cut from the country’s central bank that raised concerns about an emerging real estate crisis. Dow Jones Industrial Average futures were down 220 points, or 0.6%. S&P 500 and Nasdaq-100 futures both dropped 0.5%. Follow live market updates.

2. Trump indicted again

Republican presidential candidate and former U.S. President Donald Trump speaks during a rally at the Steer N’ Stein bar at the Iowa State Fair on August 12, 2023 in Des Moines, Iowa. 

Brandon Bell | Getty Images

Former President Donald Trump was indicted again Monday night — this time by a grand jury in Atlanta, on charges that he and several of his allies attempted to interfere with the state’s 2020 presidential election. The charges stem from an investigation that the Fulton County district attorney opened in February 2021, shortly after the news broke that that Trump had implored Georgia’s secretary of state to “find” enough votes to reverse his loss in the state. Trump was hit with 13 separate criminal counts in the new indictment, including a violation of Georgia’s RICO, or Racketeer Influenced and Corrupt Organizations, Act. Eighteen co-defendants were charged alongside the former president. Trump now faces an unprecedented four simultaneous criminal cases as he’s running for president again.

3. Cautious consumers

In an aerial view, a sign is seen posted on the exterior of a Home Depot store on February 21, 2023 in El Cerrito, California. 

Justin Sullivan | Getty Images

Home Depot beat analyst expectations in its second-quarter earnings report, but posted a 2% year-over-year sales decline. Chief Financial Officer Richard McPhail told CNBC’s Melissa Repko that the results indicate customers are still cautious about tackling big home-improvement projects and larger, more discretionary spending. The retailer reported earnings per share of $4.65 vs. the $4.45 that was expected, as well as revenue of $42.92 billion vs. the $42.23 billion analysts had forecast. Despite the beat, Home Depot reiterated its forecast for the fiscal year, saying it expects sales and comparable sales to decline between 2% and 5% compared with the year-ago period.

4. UBS settles

General view of the UBS building in Manhattan on June 5, 2023 in New York City.

Eduardo Munoz Alvarez | View Press | Corbis News | Getty Images

Swiss bank UBS will pay $1.4 billion to settle “legacy” fraud and misconduct charges related to its offering of residential mortgage-backed securities, federal prosecutors announced Monday. The bank said the settlement stems from actions taken from 2006 to 2007, leading up to the global financial crisis. The U.S. Department of Justice had brought cases against several of the largest financial institutions in the country that offered such securities; this agreement wraps up the last of those matters. UBS originated $1.5 billion in residential mortgages between 2005 and 2007, the year it stopped issuing the increasingly risky securities that helped lead to the Great Recession.

3. PayPal’s new principal

A sign is posted in front of PayPal headquarters on February 02, 2023 in San Jose, California.

Justin Sullivan | Getty Images

PayPal has named a new CEO. The company said Monday that Alex Chriss, who ran the small business and self-employed group at Intuit, will take over the top job at PayPal. In announcing the news, board members praised Chriss’ work on Intuit’s $12 billion acquisition of the marketing platform Mailchimp. Longtime CEO Dan Schulman had previously said he would step down from his role by the end of the year. Shares of PayPal rose more than 2% Monday after the news was announced.

CNBC’s Samantha Subin, Rohan Goswami, Amanda Macias, Kevin Breuninger, Dan Mangan, Melissa Repko and Ashley Capoot contributed to this report.

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