Here are the most important news, trends and analyzes from which investors should start their trading day:
1. Wall Street is falling sharply after another hot inflation report
Traders work on the floor of the New York Stock Exchange
NYSE
US stock futures fell sharply after a report on inflation before Friday’s bell showed a larger-than-expected increase. According to the data, the yield on 10-year bonds initially jumped to over 3.08%. The rise in bond yields on Thursday hit stocks after the Dow Jones Industrial Average fell 638 points or nearly 2%. The S&P 500 and Nasdaq lost approximately 2.4% and 2.8%, respectively.
- Big technology names struggled on Thursday as Meta Platforms, the parent of Facebook, fell 6.4 percent, Amazon fell more than 4 percent and Apple sank 3.6 percent. These shares jumped earlier in Friday’s pre-market trading, but then fell.
- However, Netflix fell 5% in pre-market trading after Goldman Sachs downgraded the stock to sell from neutral and lowered its target price to $ 186 per share from $ 265. Netflix closed nearly 5 percent lower on Thursday at nearly $ 193 a share.
2. Consumer inflation rose in May at the fastest pace since 1981
Supermarket in Washington, DC, May 26, 2022.
Nicholas Cam AFP | Getty Images
May’s consumer price index rose 8.6 percent year on year, the fastest progress in more than 40 years. On a monthly basis, the headline CPI rose 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 then the pace of fighting high inflation for four decades is less clear. Bond yields are rising and the stock market is falling amid fears that the Fed’s approach to tightening will have to become even more aggressive to quell price pressures, risking putting the economy in recession.
3. Average national gas price just 1 cent below $ 5 a gallon
Gas prices above $ 5.00 per gallon are shown at gas stations in New Jersey, USA, on June 7, 2022.
Lockman Vural Elibol Anatolian Agency Getty Images
The average national price per gallon of gas, according to the AAA, continues to rise, now by only 1 cent from $ 5 as oil prices continue to rise. West Texas Intermediate, the U.S. benchmark, rose Friday to more than $ 122 a barrel. However, these profits were limited as traders worried that new blockades in Shanghai for Covid’s mass testing could exceed hard oil and gas consumption for the world’s largest consumer, the United States. But for now, peak summer demand in the United States has been raising crude oil prices.
4. Two stocks that remain at home are crushed due to signals of business weakness
Shares of two companies, which were booming during the Covid pandemic, fell in the premarket on Friday morning after signals of weakness in their business.
The shares of “Stay at home” are crushed
DocuSign sank 25% in the premarket. Weaker-than-expected earnings of the electronic signature software provider for its first fiscal quarter overshadowed declining revenue. Stitch Fix fell about 20% in trading before the bell. The online customized style platform confirmed planned layoffs of 15% of the positions within its workforce, as it reported disappointing quarterly results and warned about the current quarter.
5. The Capitol Rebellion Commission accused Trump of “attempting a coup” on January 6
US President Donald Trump spoke to supporters of The Ellipse near the White House on January 6, 2021 in Washington, DC.
Brendan Smyalowski AFP | Getty Images
The House of Representatives Election Commission, which is investigating the Capitol riot on January 6th, began presenting its initial findings Thursday night in the first of a series of public hearings. The panel said the attack was not spontaneous, calling it a “coup attempt” and a direct result of efforts by then-defeated President Donald Trump to cancel the 2020 election. Trump, in a social media statement after the hearing, criticized the commission it did not show “many positive witnesses and statements” and released “only negative footage”. More hearings are expected in the next few weeks.
– Jesse Pound, Samantha Subin, Patti Dom, Jordan Novet, Lauren Thomas and Kevin Brewinger of CNBC, as well as the Associated Press, contributed to this report.
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