Here are the most important news, trends and analyzes from which investors should start their trading day:
1. Stock futures rise after the S&P 500 closed on the brink of a bear market
Traders work in the trading hall of the New York Stock Exchange (NYSE) in Manhattan, New York, USA, May 19, 2022.
Andrew Kelly Reuters
US stock futures bounced back on Friday, a day after continuing to sell on Wall Street, which saw the S&P 500 close on the verge of joining the Nasdaq bear market. These two stock benchmarks focused on their seventh consecutive weekly loss. The Dow Jones Industrial Average, which also closed lower on Thursday, was ready for the eighth consecutive week of decline. The Dow was locked in a steep correction, as determined by a drop of 10% or more from a previous high. Bear market is marked by a decline of 20% or more from the previous peak.
Bond prices, which are moving back on yields, fell on Friday as stocks rose on the preliminary market. The yield on 10-year bonds traded at about 2.9%. That’s just below the key 3% level that has been broken for weeks as traders raise yields with the belief that the Federal Reserve will have to raise interest rates more aggressively to curb inflation.
2. China is cutting the key rate to try to boost its economy, which is hampered by Covid
Tall buildings in downtown Shanghai, China, on March 12, 2018. China cut its benchmark interest rate on mortgages with an unexpectedly large margin on Friday, its second cut this year as Beijing seeks to revive ailing housing sector to support economy.
Johannes Eisele Afp | Getty Images
China is on a different path with borrowing costs, lowering its benchmark interest rate on mortgages with an unexpectedly large margin on Friday. This is the second reduction this year at this key rate, as Beijing seeks to revive the country’s diseased housing sector to support the world’s second-largest economy. Senior Chinese officials have promised additional measures to combat the slowdown in economic growth due to the blockade and other restrictive measures in the framework of this country’s policy of zero Covid. Many private sector economists expect China’s economy to shrink this quarter from a year earlier, up from 4.8 percent in the first quarter.
3. Ross Stores becomes the newest retailer, crushed by inflation
Pedestrians pass in front of the Ross Stores store in San Francisco.
Noah Berger Bloomberg | Getty Images
Back in the US, the Ross Stores became the last retail stock to crash after signaling that inflation was a problem. Shares of the non-retail retailer fell 26% on the pre-market after three months of gains in profits and earnings. In its first-quarter earnings announcement after the end of the bell on Thursday, Ross Stores also issued bad guidelines. The company said Russia’s war in Ukraine had “sharpened inflationary pressures”, adding that it was facing difficult comparisons on an annual basis in the first half of 2022 due to the expiring government stimulus Covid and the normalization of subdued demand.
4. The CDC recommends a booster of the Pfizer Covid vaccine for children 5-11 years of age
A healthcare worker administers the Pfizer-BioNTech Covid-19 vaccine to a child at a vaccination site in San Francisco, California, USA, on Monday, January 10, 2022.
David Paul Morris Bloomberg | Getty Images
The Centers for Disease Control and Prevention recommends Pfizer Covid booster vaccine for children 5 to 11 years of age at least five months after their main series of vaccinations. The CDC’s move on Thursday comes as Covid infections increase across the country and immunity from the first two doses declines. The agency is launching boosters for children ages 5 to 11, although most children in this age group have not yet received their first two doses. Only 29% of this cohort is fully vaccinated. In a statement Thursday, CDC Director Dr. Rochelle Valensky tried to reassure parents that the injections were safe and encouraged them to vaccinate their children.
5. Musk denies “wild accusations” in an apparent reference to a report of harassment
SpaceX CEO Elon Musk attended a press conference after the launch of the Press Site auditorium at NASA’s Kennedy Space Center in Florida on May 30, 2020, following the launch of the agency’s SpaceX Demo-2 mission to the International Space Station.
NASA / Kim Shiflet
Elon Musk, the founder and CEO of SpaceX, tweeted late Thursday that the “wild accusations” against him were untrue. He did not explain the charges. But his response came after a report by Business Insider on Thursday said the aerospace company had paid $ 250,000 in compensation to a flight attendant who accused the billionaire of sexual assault. The report, which cites interviews and documents received from Insider, says the woman claims that during a massage he gave Musk, he revealed his erect penis, touched her thigh without her consent and offered to buy it. horse if he performs sexual acts. CNBC could not independently verify these allegations.
– Fred Imbert, Sarah Min, Vicki McKeever, Spencer Kimball and Dan Mangan from CNBC, as well as Reuters contributed to this report.
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