Here are the most important news, trends, and analysis investors need to start their trading day:
1. Wall Street drops decisively after another hot inflation report
Traders work on the New York Stock Exchange
NYSE
US equities futures fell sharply after the pre-Friday inflation report showed a larger-than-expected rise. According to the data, the 10-year Treasury yield initially jumped to more than 3.08%. The rise in bond yields on Thursday hit equities as the Dow Jones Industrial Average fell 638 points or nearly 2%. The S&P 500 and Nasdaq lost about 2.4% and 2.8%, respectively.
- Top tech names battled on Thursday, with Facebook’s parent platform Meta falling 6.4%, Amazon falling more than 4% and Apple sinking 3.6%. These shares bounced back from pre-market trading on Friday.
- However, Netflix fell 4.5% in pre-market trading after Goldman Sachs downgraded shares to sell neutral and lowered the target price to $ 186 per share from $ 265. Netflix closed nearly 5% lower on Thursday at nearly $ 193 per share.
2. Consumer inflation in May rose at the fastest pace since 1981
A supermarket in Washington, DC, on May 26, 2022.
Nicholas Kamm | AFP | Getty Images
The May consumer price index rose 8.6% year-on-year, the fastest advance in more than 40 years. In monthly terms, the overall CPI rose by 1%, also higher than expected. The Federal Reserve is expected to raise interest rates by half a point next week and another half a point in July. But after that, the pace for fighting four-decade-high inflation is less clear. Bond yields have been rising and the stock market has fallen amid concerns that the Fed’s approach to tightening will have to become even more aggressive in stifling price pressures, with the risk of putting the economy in jeopardy. recession.
3. The national average of gas prices is just 1 cent below $ 5 a gallon
Gasoline prices in excess of $ 5.00 a gallon are shown at gas stations in New Jersey, USA on June 7, 2022.
Lokman Vural Elibol | Anadolu Agency | Getty Images
The national average price of a gallon of gasoline, according to AAA, continues to rise, now just 1 cent below $ 5, as oil prices continue to rise. West Texas Intermediate crude, the U.S. benchmark, rose on Friday and traded at more than $ 122 a barrel. These gains were limited, however, as traders worried that the new blockade measures in Shanghai for Covid’s massive tests could exceed the consumption of oil and solid gas for the world’s largest consumer, the United States. But for now, peak summer demand in the U.S. was raising crude oil prices.
4. Two actions to stay at home are crushed by signs of business weakness
Shares of two companies, which prospered during the Covid pandemic, were down in the pre-market on Friday morning following signs of weakness in their business.
Stocks to stay home were crushed
DocuSign sank 25% in the pre-market. Weaker-than-expected earnings from the electronic signature software vendor for its first fiscal quarter overshadowed an increase in revenue. Stitch Fix plummeted by about 14% in pre-bell trading. The online personalized style platform confirmed the expected layoffs of 15% of its staff’s salaried positions, as it reported disappointing quarterly results and warned about the current quarter.
5. Capitol Chamber of Deputies panel blames Trump on January 6 “coup attempt”
U.S. President Donald Trump speaks with supporters of The Ellipse near the White House on January 6, 2021 in Washington, DC.
Brendan Smialowski | AFP | Getty Images
The select committee of the House investigating the January 6 Capitol riot began presenting its initial findings Thursday night in the first of a series of public hearings. The panel said the assault was not spontaneous and called it a “coup attempt” and a direct result of then-ousted President Donald Trump’s effort to overturn the 2020 election. in a post on social media after the hearing, he criticized the committee for not showing “the many positive testimonies and statements” and reproducing “only negative images.” More hearings are expected in the coming weeks.
– JBC Pound, Samantha Subin, Patti Domm, Jordan Novet, Lauren Thomas and Kevin Breuninger of CNBC, as well as The Associated Press contributed to this report.
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