Here are the most important news, trends and analysis investors need to start their trading day:
The sign for Wall Street is seen with US flags outside the New York Stock Exchange.
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Dow futures contract up 400 points, or 1.4%, on Tuesday after a week of terrible sales. Futures on the S&P 500 and Nasdaq both rose about 1.5% to start the week short. The 10-year Treasury yield on Tuesday still at the highest level of 2011, near 3.28%, a level that is helping to ease pressure on the stock. Following last week’s biggest Federal Reserve interest rate hike since 1994 to fight inflation, Fed Chair Jerome Powell is expected to deliver its biannual monetary policy report to Congress on Wednesday and Thursday.
- The S&P 500The weekly drop of 5.8% is worst since March 2020month when the Covid pandemic was announced, when investors worried about a recession.
- The Dow closed below 30,000 again on Friday and lost 4.8% last week. That was the weakest weekly performance for the 30-stock average since October 2020.
- No superlative for poor performance Nasdaqweekly loss of 4.8%.
- All three stock benchmarks fell for three straight weeks. The S&P 500 and Nasdaq have both fallen weekly for 10 of the past 11 sessions, both in bear markets. The Dow’s negative week was the 11th out of the last 12, in a sharp correction.
West Texas Intermediate Crude Oil, US oil benchmark, up 2% on Tuesday to about $110 per barrel, sparking a strong money market rally for energy stocks. However, WTI fell more than 9% last week, breaking a 7-week winning streak and settling on Friday about 15% lower. The 13-year high in early March was $130.50. Supply and demand worries due to geopolitical factors including Russia’s war in Ukraine and China’s coronavirus lockdowns and restrictions have sent oil and gasoline prices soaring.
Kellogg announced the plan next Tuesday split into three independent companies. The food giant will move into the North American grain business and the plant-based division, which accounted for about 20% of its revenue last year. The third independent company will be the remaining businesses – including snacks, noodles, international cereals and North American frozen breakfast brands, which will account for about 80% of the company’s 2021 revenue. CEO Steve Cahillane told CNBC on Tuesday that it’s likely the name Kellogg will come up in some way. Shares of Kellogg jumped 6% in money markets after the announcement.
Shares of Spirit Airlines up 9% in money markets on Tuesday but still at lower levels JetBlueSweet takeover offer of $33.50 per share on Monday. Spirit said last week it was in talks with JetBlue about its offer and expected to decide on the proposal by June 30. JetBlue said its proposal represents a 68% premium over for the implied value of a competitive stock and cash bid from the parent company of Frontier Airlines.
Elon Musk said yes three main obstacles must pass before he can complete his $44 billion purchase Twitter. In an interview with Bloomberg on Tuesday, the CEO of Tesla and SpaceX said there are a number of “unresolved issues” that will need to be resolved before he can proceed with the takeover: fake accounts, debt financing and Twitter shareholder approval. The fate of the deal became uncertain in recent weeks after Musk threatened to ignore questions about Twitter’s disclosure of the number of spam accounts on the platform.
Bitcoin rose more than 5% on Tuesday, back above $21,000 after a wild long weekend. The world’s largest cryptocurrency, which fell on Saturday to a low of around $17,600, fell below the key $20,000 level for the first time since December 2020. At the low point on Saturday. , bitcoin is about 74% below its all-time high of more than $68,000. November was the month of Nasdaq’s last record high. Bitcoin has been trading in tandem with the heavy tech index, rejecting the argument of the cryptocurrency as an inflation hedge like gold.