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Key Considerations Before Friday's Stock Market Opening

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Key News Items for Investors to Start Their Trading Day

Stock futures are higher on Friday following a turbulent August. Despite recent positive sessions that helped trim monthly losses, the S&P 500 lost 1.77%, the Nasdaq shed 2.17%, and the Dow dropped 2.36% in August. Notable developments include Dell Technologies and MongoDB shares rising 9% and 6% respectively after releasing strong earnings reports. Lululemon Athletica's stock also added 2% after surpassing Wall Street's estimates and raising its guidance.

Focus on Jobs Data

Investors are eagerly awaiting the release of jobs data from the Department of Labor, as it is the first Friday of the month. Economists polled by Dow Jones expect the U.S. economy to have added 170,000 jobs in August, slightly lower than the 187,000 created in July. Additionally, average hourly wages are expected to rise 0.3% month over month, down from a gain of 0.4% in July. The report could provide insights into the Federal Reserve's actions at its September meeting.

Potential Impact on Medication Costs

Medicare's spending on Ozempic, a diabetes treatment from Novo Nordisk, is expected to be a topic of negotiation in 2025. Medicare Part D spent over $2 billion on Ozempic in 2021, and this expenditure is comparable to some of the first 10 drugs chosen for price negotiations by the Biden administration. Analysts predict that Medicare's spending on Ozempic will continue to grow due to high demand. These negotiations aim to lower medication costs and could have significant implications for the pharmaceutical industry.

Potential Loosening of Marijuana Restrictions

U.S. health officials have expressed a desire to relax marijuana restrictions, which could greatly benefit the industry. The Department of Health and Human Services has requested the Drug Enforcement Agency to consider easing restrictions on marijuana, currently classified as a Schedule I drug. Reclassifying it as a Schedule III drug would alleviate tax burdens and allow for interstate commerce. This news has already led to a rise in pot stocks, including Aurora Cannabis, Canopy Growth, and Tilray Brands. In conclusion, investors should pay attention to stock market developments following a volatile August. The release of jobs data and potential changes in medication and marijuana regulations could impact various sectors. Staying informed and monitoring these key news items will be crucial for making informed trading decisions.

Implications for New Businesses

The current landscape of the stock market, coupled with the potential changes in medication and marijuana regulations, presents a complex environment for new businesses. The volatility experienced in August and the anticipation of jobs data release could impact investor confidence and business valuations.

Impact on Healthcare Startups

For healthcare startups, particularly those in the pharmaceutical industry, the potential for Medicare price negotiations could significantly affect their revenue models. The case of Ozempic, a diabetes treatment, serves as a reminder of the potential financial implications of such negotiations.

Opportunities in the Cannabis Industry

For businesses in the cannabis industry, the potential easing of marijuana restrictions could open up new opportunities. The reclassification of marijuana from a Schedule I to a Schedule III drug could alleviate tax burdens and enable interstate commerce, potentially expanding their market reach. In conclusion, the current stock market conditions and potential regulatory changes present both challenges and opportunities for new businesses. By staying informed and adapting their strategies accordingly, new businesses can navigate these complexities and position themselves for success. As always, vigilance and adaptability will be key in this ever-evolving business landscape.
Story First Published at: https://www.cnbc.com/2023/09/01/5-things-to-know-before-the-stock-market-opens-friday-september-1.html
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