TheStreet’s J.D. Durkin brings you the biggest news of the day, including how the markets are reacting to ongoing negotiations in D.C., and why Rite Aid is closing more stores.
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00:00 I'm J.D. Durkin reporting from the New York Stock Exchange.
00:02 Here's a look at what we are watching on the street today.
00:04 Wall Street is hoping to keep up the momentum after the markets
00:07 finished in the green in yesterday's session.
00:09 Investors are continuing to react to news that the Federal Reserve sees
00:13 fewer rate cuts next year.
00:15 A Fed policymaker reinforcing this on Monday, saying that given
00:19 how resilient the U.S. economy has been, the U.S.
00:21 Central Bank will likely need to keep rates higher for longer.
00:25 Also weighing on the markets overall are ongoing negotiations in Washington.
00:29 If Congress does not agree on a new spending bill by the end of this month,
00:33 the entire federal government could shut down on October 1st.
00:36 A government shutdown could cause a bit of volatility in the stock market.
00:40 Meanwhile, in the world of retail, the bad news keeps on coming for Rite Aid.
00:44 According to Wall Street Journal, the drugstore chain announced
00:47 it will be closed in another 400 to 500 locations or roughly 25 percent of its
00:52 stores as it continues to negotiate a bankruptcy plan with creditors.
00:56 Rite Aid has already closed 180 locations since 2021.
01:01 The Philadelphia based retailer has over three point three billion dollars
01:05 in debt and faces thousands of lawsuits that allege the company added
01:08 to the opioid epidemic by oversupplying medications.
01:12 In a separate lawsuit, Rite Aid is accused of misleading shoppers
01:16 about the health benefits of its oral care dry mouth discs.
01:19 The company reported net loss of three hundred and seven million dollars
01:22 in its first quarter earnings report.
01:24 More than two and a half times what it reported losing in the first quarter
01:27 of 2022.
01:29 Company revenues also declining significantly, with Rite Aid
01:31 bringing in about three hundred and fifty million dollars less year over year.
01:35 That'll do it for your daily briefing this morning from the New York Stock Exchange.
01:39 I'm J.D. Durkin with The Street.
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