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CNBC’s Jim Cramer on Tuesday said market rallies will be short-lived as long as inflation remains persistent.
“Sometimes you don’t need to know the price of the Dow, you just need to know the price of Kerrygold butter or a Lennar three-bedroom,” the “Mad Money” host said.

CNBC’s Jim Cramer on Tuesday said market rallies will be short-lived as long as inflation remains persistent.
“Sometimes you don’t need to know the price of the Dow, you just need to know the price of Kerrygold butter or a Lennar three-bedroom,” the “Mad Money” host said.

“If they come down — not just versus last year, but versus two years ago or three years ago — then your stocks can maintain, if not go higher,” he added.
Stocks fell on Tuesday as investors eyed the conclusion of the Federal Reserve’s Wednesday meeting when the central bank is expected to announce a 75 basis point rate hike. Traders also are watching for any projections from the Fed about how high interest rates will go.
Fed Chair Jerome Powell is expected to reiterate the central bank’s aggressive stance against inflation.
Cramer reminded investors that more pain is ahead, and the market’s loss is Powell’s gain. Stocks represent purchasing power since investors can sell them for cash, and the Fed chief needs people to have less of that power in order to stamp out inflation, he explained.
In addition to bringing down the price of stocks and goods, Powell needs to tamp down wage inflation, he added.

“That’s the final frontier, and the Fed will keep hitting the brakes on the economy until the labor market cools down,” he said.

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Digital World Acquisition Corp. is facing investor concerns about a potential failed merger with former President Donald Trump’s company.
The investors are seeking protections to their profits against the potential liquidation of the blank check company.
DWAC shareholders will vote in October to extend the merger with Trump Media and Technology Group and its Truth Social Platform.

The social media app will be developed by Trump Media and Technology Group (TMTG).
Rafael Henrique | LightRocket | Getty Images

Digital World Acquisition Corp., the company planning to take Trump Media and Technology Group public, is facing investor concerns about a potential failed merger with former President Donald Trump’s company.
The Financial Times reported Tuesday that DWAC Chief Executive Patrick Orlando is negotiating with investors who said they would back the company through a private investment in public equity, or PIPE, deal.

The $1 billion deal was set to expire Tuesday. If it falls apart, it would mean a lot less money for Trump Media, even if it did end up going public through a merger with DWAC. Orlando was pushing for a 10-day extension, according to the newspaper.
The PIPE investors are hoping to bring down the minimum conversion price for their preferred stock from $10 to as low as $2, the FT reported, citing a person involved in the talks. That would boost their potential profit on the deal, even in the worst case scenario, as it would give the investors more shares and dilute other shareholders’ stakes – including Trump’s.
The negotiation is an attempt to shift risk to DWAC and Trump Media, which owns Truth Social. DWAC shares are currently trading at around $20, down significantly from $97 highs earlier this year, but still above the $10 liquidation price.

“Trump wants to make sure he doesn’t face a lot of dilution,” one person involved told the FT. “Optically, he wants to avoid a $2 floor. It looks weak and he doesn’t want to look weak.”
Representatives for DWAC and Trump Media didn’t immediately respond to a request for comment.

DWAC is a special purpose acquisition company, or SPAC, a publicly traded entity that takes pre-existing companies public. Orlando extended a deadline to merge with Trump Media beyond its early September date with a $2.8 million infusion from his company, the SPAC sponsor, ARC Global Investments II. DWAC is pushing shareholders to approve a yearlong extension of the deadline. The next shareholder meeting is set for next month.
If the merger deadline is not extended, DWAC has warned that the company may have to liquidate, returning shareholders around $10 per share, the initial share price for a SPAC.
Trump founded Trump Media and Technology Group and its platform Truth Social after he was banned from Twitter following the Jan. 6, 2021, Capitol riot. The former president is facing multiple investigations relating to the attempt to overturn the 2020 presidential election and the removal of sensitive documents from the White House. Trump Media’s planned merger with DWAC is the subject of federal probes into potential securities violations.
After a boom in 2020 and 2021, SPACs have largely dried up. “SPAC King” Chamath Palihapitiya let two of his blank-check companies dissolve Tuesday as their deadlines passed without extension.
Orlando, DWAC’s CEO, saw one of his SPACs liquidate in 2021. He has until December to prevent Digital World Acquisition Corp. from meeting the same fate.

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Beyond Meat’s operating chief Doug Ramsey was arrested Saturday evening for allegedly punching another man and biting his nose.
Ramsey, 53, has been Beyond Meat’s chief operating officer since December.
He was charged with terroristic threatening and third-degree battery.

Beyond Meat said its operating chief Doug Ramsey has been suspended, effective immediately, after he was arrested Saturday evening for allegedly punching a man and biting his nose.
The company said in a statement on Tuesday afternoon that Jonathan Nelson, the company’s senior vice president of manufacturing operations, will oversee Beyond’s operations activities on an interim basis.

Ramsey, 53, was charged with terroristic threatening and third-degree battery and booked in the Washington County jail after allegedly assaulting a driver in a parking garage near Razorback Stadium.
Ramsey allegedly punched through the back windshield of a Subaru after it made contact with the front tire of Ramsey’s car, according to a preliminary police report obtained by CNBC. The Subaru owner then got out of his car, and Ramsey allegedly started punching him and bit his nose, “ripping the flesh on the tip of the nose,” according to the report. The victim and a witness also alleged that Ramsey told the Subaru owner he would kill him.
Ramsey has been Beyond Meat’s chief operating officer since December. The news of his arrest after a University of Arkansas football game brought more scrutiny to the vegan food company, which has been struggling with disappointing sales and investor skepticism over its long-term growth prospects. The stock has fallen 75% this year, dragging its market down to $1.02 billion. Just three years ago, the company was valued at $13.4 billion.
Prior to joining Beyond Meat, Ramsey spent three decades at Tyson Foods, overseeing its poultry and McDonald’s businesses. Beyond Meat was relying on his experience to help the company successfully pull off big launches, particularly with fast-food companies like Taco Bell owner Yum Brands and McDonald’s.
Ramsey did not respond to a request for comment from CNBC.

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American will add suites with sliding doors to new 787-9 Dreamliners and Airbus XLRs.
The carrier will also retrofit some older Boeing 777s with the suites, which debut in 2024.
The changes mark the end of American’s Flagship First product for longer-haul flights.

Seats in American Airlines’ new Flagship Suites

American Airlines on Tuesday unveiled new suites for some of its longest-range planes, a bid to chase high-paying customers as travel demand returns.
The new suites, which will feature lie-flat seats and a sliding door for privacy, will debut in 2024 and will mark the end of American’s Flagship First class, its top-tier offering on many international and other longer-haul flights.

It’s too early to know what fares will be two years on, but the price difference between coach and premium classes is vast. For example, a trip between New York and Paris leaving Oct. 18 and returning a week later is going for $935 in standard economy on American and $5,981 in business class.
American declined to disclose what the cabin revamp will cost the carrier.
The initiative is the latest effort by an airline to add more seats for travelers willing to pay a higher price for more comfort on board. Major U.S. airline executives have recently said that leisure travelers are shelling out more for more premium seats.
Airlines have been shrinking or phasing out first-class cabins for years so they can fit in revamped business-class seats and premium economy sections.

Rows of American Airlines’ new Flagship Suites

Fort Worth, Texas-based American said premium seats on its long-haul aircraft will grow by more than 45% by 2026.

The new Boeing 787-9 planes will have 51 of the suites, plus 32 premium economy seats. The carrier is also planning to retrofit its 777-300ER planes to include 70 suites and 44 premium economy suites.
New Airbus A321XLR’s will have 20 suites and 12 premium economy seats, American said.

American Airlines seat for its new Flagship Suite seats

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GM has agreed to sell up to 175,000 electric vehicles to Hertz Global over the next five years, the companies announced Tuesday.
The deal calls for GM to start supplying electric vehicles such as the Chevrolet Bolt EV and Bolt EUV to the rental car giant starting early next year.
It follows similar Hertz agreements with Tesla and Polestar to help build out the rental company’s electric fleet.

General Motors has agreed to sell up to 175,000 electric vehicles to Hertz Global over the next five years, the companies announced Tuesday.
The deal calls for GM to start supplying electric vehicles such as the Chevrolet Bolt EV and Bolt EUV to the rental car giant starting the first quarter of next year. Those vehicles are expected to be followed by newer EV models on the company’s Ultium battery technology, such as the Chevrolet Blazer, Chevrolet Equinox and vehicles from GM’s other brands.

GM is expected to significantly increase its production of all-electric vehicles in the coming years, as North American output of the cars and trucks — as well as the battery cells used to power them — increases. The company plans to reach production capability of 1 million EVs in North America and China, each, by 2025.

2024 Chevrolet Blazer SS EV

GM is the latest automaker to strike such an agreement with Hertz following Tesla and Polestar, a Volvo-backed electric vehicle startup. Those agreements were for 100,000 and 65,000 vehicles, respectively, making GM’s deal the largest of the three.
“Our work with Hertz is a huge step forward for emissions reduction and EV adoption that will help create thousands of new EV customers for GM,” CEO Mary Barra said in a statement.
Hertz has made increasing its fleet of electric vehicles a priority following its emergence from bankruptcy less than a year ago. The debt-laden company was an early victim of the coronavirus pandemic but has since recovered amid surging demand in travel and supply chain issues. The problems have resulted in lower inventories but higher profits for rental car fleets.
The companies declined to release financial details of the deal. Steve Carlisle, GM’s president of North America, said the company plans to sell the EVs around “retail margin” rather than discounted fleet sales.

“It is good business,” Carlisle told reporters during a call.
Shares of GM and Hertz were relatively unimpacted by the announcement. Both were down midday Tuesday amid a broader market decline.
Investors have traditionally frowned upon automakers when they sell large numbers of vehicles to daily rental fleets. That’s because cars and trucks sold to rental companies are usually sold at a discount, with such deals used to reduce bloating inventories and increase their total vehicle deliveries.
However, shareholders and analysts have responded favorably to automakers such as Tesla selling EVs to Hertz, viewing the move as a sign that battery-electric cars were going more mainstream.
Hertz aims to have a quarter of its fleet be electric by the end of 2024, while GM has announced plans to offer only electric vehicles by 2035.

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Gap Inc. is cutting about 500 corporate positions, it confirmed Tuesday.
The job cuts come as the apparel retailer cuts back on spending amid declining sales and the ending of its partnership with Kanye West’s Yeezy brand.

Pedestrians walk past a Gap Inc. store in Shanghai, China.
Qilai Shen | Bloomberg | Getty Images

Gap Inc. is cutting about 500 corporate jobs as the clothing retailer struggles with declining sales.
The job cuts, which include open positions, will be primarily at Gap’s offices in San Francisco, New York and Asia and hit various departments, a representative for the retailer confirmed Tuesday. The moves were first reported by The Wall Street Journal.

The San Francisco-based company has experienced a slew of setbacks, including issues with the product assortment at its Old Navy brand, which accounted for more than half the company’s sales in its fiscal 2021.
And last week, Kanye West, who goes by Ye, said he was ending his company Yeezy’s partnership with Gap after the rapper accused the retailer of breaching terms of their agreement. Ye said Gap failed to distribute Yeezy products at its stores by the second half of 2021 and did not create dedicated Yeezy Gap stores as promised.
Ye told CNBC he was dissatisfied with progress on launching physical Yeezy stores in partnership with the retailer. Gap later confirmed the break, but said it still plans to work through its Yeezy product pipeline.

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Rents for single-family homes are still higher than they were a year ago, but increases are slowing down.
Miami continues to see the biggest gain, with rents up nearly 31% from the year before.
Rent growth has risen a bit in some large Northeastern markets, like Philadelphia, New York City and Washington, D.C.

A ‘For Rent’ sign is posted near a home on February 07, 2022 in Houston, Texas.
Brandon Bell | Getty Images

Rents for single-family homes were 12.6% higher in July compared with the year-earlier month, but the gains continue to shrink from the record high seen in April, according to a new report from CoreLogic.
Most major metropolitan areas are seeing the same cooling, even in the Sun Belt which saw rents soar the most during the first years of the pandemic.

Miami continues to see the biggest gain, with rents up nearly 31% from the year before, but that’s actually down from 41% growth seen in March. Phoenix rents were up 12.2% in July, but down from an 18% gain in March.

Rents soared in warmer spots in large part due to remote workers relocating during the pandemic. They also chose single-family homes over apartments because they wanted more space. That demand fueled rent increases and hit affordability hard. With inflation now taking a bigger bite out of consumers’ wallets, demand for these high-priced rentals is waning, and landlords are losing pricing power.
“July marked the third month of slower annual gains in single-family rents,” said Molly Boesel, principal economist at CoreLogic. “However, higher interest rates this year increased monthly mortgage payments for new loans, and potential homebuyers may choose to continue renting rather than buy, helping keep price increases in check.”
Rent growth has risen a bit in some large Northeastern markets, like Philadelphia, New York City and Washington, D.C. The return to work for government employees in D.C. and tech and finance workers in New York is fueling some of that.
While Miami and Atlanta are seeing the biggest rent gains, St. Louis and Honolulu are seeing the smallest. Vacancy rates, however, continue to be extremely low across most major markets, as demand outweighs supply.

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Amazon’s debut broadcast of “Thursday Night Football” helped hook a record number of new Prime signups for a three-hour period, an executive wrote in a memo to employees.
The company is paying about $1 billion a year for exclusive Thursday night rights from the NFL.
Nielsen had yet to release viewership numbers for the game as of Tuesday morning.

Los Angeles Chargers tight end Gerald Everett (7) during a 26-yard reception in the fourth quarter of an NFL game between the Los Angeles Chargers and Kansas City Chiefs on September 15, 2022 at GEHA Field at Arrowhead Stadium in Kansas City, MO.
Scott Winters | Icon Sportswire | Getty Images

Amazon’s first broadcast of “Thursday Night Football” attracted a record number of new Prime signups over a three-hour period, more than during similar periods on Prime Day or other big shopping days such as Black Friday and Cyber Monday, an executive said in a memo viewed by CNBC.
The matchup between the Kansas City Chiefs and the Los Angeles Chargers last week was the first of 15 games Amazon will broadcast as part of a deal with the National Football League. Amazon is spending about $1 billion per year to exclusively stream Thursday Night Football through 2023, CNBC previously reported.

“By every measure, Thursday Night Football on Prime Video was a resounding success,” Jay Marine, global head of Amazon’s sports division, wrote late Monday in the memo to staff.
Nielsen has yet to release official viewership numbers for the game. Marine said Amazon’s measurement “shows that the audience numbers exceeded all of our expectations for viewership.”
Amazon is betting heavily on sports broadcasting with the hope that it will boost its Prime membership. The Prime subscription program, which charges $139 per year for a host of perks including free shipping, now has some 200 million subscribers worldwide. Amazon has said there are 80 million active Prime Video households in the U.S.
It’s beefed up its Prime Video content in other ways to hook viewers and new subscribers. The company recently debuted its long-awaited series “The Lord of the Rings: The Rings of Power,” which is derived from the appendices of J.R.R. Tolkien’s “Lord of the Rings” books. Amazon said the first episode of the series, which set a record for being the most expensive show ever made, attracted more than 25 million viewers globally in its first day.
WATCH: The NFL’s big Amazon debut and first week ratings gains

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