Here are the most important news, trends, and analysis investors need to start their trading day:
1. Wall Street will bounce back after the worst S&P 500 search since 2020
The Wall Street sign is displayed with U.S. flags on the New York Stock Exchange.
Yuki Iwamura | Afp | Getty Images
Dow futures rose 400 points, or 1.4%, on Tuesday after a terrible week of sales. The S&P 500 and Nasdaq futures bounced around 1.5% to start the shortened holiday week. The 10-year Treasury yield on Tuesday remained outside the highs of 2011, at almost 3.28%, a level that helps reduce the pressure on stocks. Following the Federal Reserve’s biggest rise in interest rates since 1994 to fight inflation, Fed Chairman Jerome Powell is due to deliver his six-monthly monetary policy report to Congress on Wednesday and Thursday.
- The weekly fall of 5.8% in the S&P 500 was the worst since March 2020, the month in which the Covid pandemic was declared, as investors were worried about a recession.
- The Dow closed below 30,000 on Friday and lost 4.8% last week. This is the weakest weekly yield on the average of 30 shares since October 2020.
- There are no superlatives for the weekly loss of 4.8% of the low-yielding Nasdaq.
- All three stock benchmarks fell for three weeks in a row. The S&P 500 and Nasdaq recorded weekly losses in 10 of the last 11 sessions, both in bearish markets. The negative week of the Dow was the eleventh of the last 12, in a strong correction.
2. US oil prices recover from some of last week’s sharp declines
West Texas Intermediate crude, the U.S. oil benchmark, rose 2 percent on Tuesday to $ 110 a barrel, causing a sharp rebound ahead of the energy stock market. However, the WTI sank more than 9% last week, breaking a seven-week streak of victories and falling about 15% below its 13-year high on Friday at the beginning of March 130. , $ 50. Concerns about supply and demand due to geopolitical factors, such as Russia’s war in Ukraine and Covid’s blockades and mitigation restrictions in China, have kept oil and gasoline high.
- But as of Tuesday, the national average of one gallon of gasoline had dropped below $ 5. Still, this is still very high, and President Joe Biden said Monday that he is seriously considering a temporary halt to the federal gas tax before July 4.
3. Kellogg plans to separate; JetBlue increases its Spirit offering
Kellogg on Tuesday announced plans to split into three independent companies. The food giant will split its U.S. grain business and its plant-based division, units that accounted for about 20 percent of its revenue last year. The third independent company will be the rest of the business, including its snacks, noodles, international cereals and frozen American breakfasts, which accounted for about 80% of its sales in 2021. CEO Steve Cahillane told CNBC on Tuesday that the name Kellogg is likely to be maintained in some way. Kellogg shares rose 6% in the pre-market after the announcement.
Shares of Spirit Airlines rose 9% in the pre-market on Tuesday, but remained below JetBlue’s sweetened takeover bid of $ 33.50 per share on Monday. Spirit said last week that it was in talks with JetBlue about its offer and hoped to decide on the proposal before June 30. JetBlue said its proposal represents a 68% premium on the implied value of a competitive offering of shares and cash from the parent company of Frontier Airlines.
4. Musk says 3 issues need to be resolved to advance the Twitter purchase
Elon Musk said there are three major hurdles to overcome before he can complete his $ 44 billion Twitter purchase. In a Bloomberg interview on Tuesday, the CEO of Tesla and SpaceX said there were a number of “unresolved issues” that will need to be resolved before it can move forward with the acquisition: fake accounts, debt financing and approval from Twitter shareholders. . The fate of the deal has become more uncertain in recent weeks after Musk threatened to leave over questions about Twitter revelations about the number of spam accounts on the platform.
5. Bitcoin oscillates higher after collapsing below $ 18,000 over the weekend
Bitcoin rose more than 5% on Tuesday, to above $ 21,000 after a long wild weekend. The world’s largest cryptocurrency fell to about $ 17,600 on Saturday, below the key level of $ 20,000 for the first time since December 2020. At its lowest point on Saturday, bitcoin was around 74 % below its all-time high of more than $ 68,000. in November, which was the month of the last Nasdaq record high. Bitcoin has been trading in tandem with the technology index, eliminating the crypto argument as a hedge for inflation like gold.
– Yun Li, Peter Schacknow, Samantha Subin, Jesse Pound, Amelia Lucas and Ryan Browne of CNBC, as well as NBC News and Reuters contributed to this report.
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