Here are the most important news, trends and analyzes from which investors should start their trading day:
1. Wall Street will bounce back after the worst demand for the S&P 500 since 2020.
The Wall Street sign is displayed with American flags in front of the New York Stock Exchange.
Yuki Iwamura Afp | Getty Images
Dow futures jumped 400 points, or 1.4 percent, on Tuesday after a terrible week of sales. The futures of the S&P 500 and Nasdaq jumped about 1.5% at the beginning of the shortened holiday week. Yields on 10-year bonds on Tuesday remained outside the 2011 high of nearly 3.28%, a level that helps reduce pressure on stocks. After the largest increase in Federal Reserve interest rates since 1994 to fight inflation, Fed Chairman Jerome Powell will present his semi-annual report on congressional monetary policy on Wednesday and Thursday.
- The weekly decline in the S&P 500 of 5.8% was its worst since March 2020, the month in which the Covid pandemic was announced, as investors worried about a recession.
- The Dow closed below 30,000 again on Friday and lost 4.8% last week. This is the lowest weekly performance for the average of 30 shares since October 2020.
- No superlatives for Nasdaq’s low-performing weekly loss of 4.8%.
- All three stock benchmarks fell for three consecutive weeks. The S&P 500 and Nasdaq reported weekly losses in 10 of the last 11 sessions, both in bear markets. Dow’s negative week was the 11th of the last 12, with a sharp correction.
2. US oil prices have recovered from some of last week’s sharp declines
Crude oil West Texas Intermediate, US oil, rose 2% on Tuesday to approximately $ 110 a barrel, causing a sharp rise in pre-market energy reserves. However, the WTI sank more than 9% last week, breaking a seven-week winning streak and set about 15% below its 13-year high of $ 130.50 on Friday in early March. Unexpected worries about supply and demand due to geopolitical factors, including Russia’s war in Ukraine and the continuing blockades and restrictions on Covid’s mitigation in China, have sustained rising oil and gasoline.
- But on Tuesday, the average value per gallon of gas fell below $ 5. However, this is very high, and President Joe Biden said on Monday that he was seriously considering suspending the federal gas tax before July 4th.
3. Kellogg plans to split up; JetBlue increases its Spirit offer
Kellogg announced plans on Tuesday to split into three independent companies. The food giant will separate its North American cereals business and plant division, units that accounted for about 20 percent of its revenue last year. The third independent company will be other businesses – including its snacks, noodles, international cereals and North American frozen breakfast brands, which account for about 80 percent of its sales in 2021. CEO Steve Cahilon told CNBC on Tuesday that the name Kellogg will stay somehow. Shares of Kellogg jumped 6% on the market after the announcement.
Shares of Spirit Airlines jumped 9% on the preliminary market on Tuesday, but remained below JetBlue’s sweetened takeover bid of $ 33.50 per share on Monday. Spirit said last week that it is in talks with JetBlue about its proposal and is expected to decide on the proposal by June 30. JetBlue said its offer was a 68% premium over the estimated value of a competitive offer for shares and money from Frontier Airlines’ mother.
4. Musk says 3 issues need to be addressed to move Twitter buying forward
Elon Musk said there were three main hurdles that needed to be overcome before he could complete his $ 44 billion Twitter purchase. In an interview with Bloomberg on Tuesday, the CEO of Tesla and SpaceX said there were a number of “unresolved issues” that would have to be resolved before he could move forward with the takeover: fake accounts, debt financing and shareholder approval. Twitter. The fate of the deal has become more uncertain in recent weeks after Musk threatened to resign over questions about Twitter’s revelations about the number of spam accounts on the platform.
5. Bitcoin is rising after sinking below $ 18,000 over the weekend
Bitcoin rose more than 5% on Tuesday, again above $ 21,000 after a wild long weekend. The world’s largest cryptocurrency fell to about $ 17,600 on Saturday, falling below the key $ 20,000 level for the first time since December 2020. At its lowest point on Saturday, bitcoin was about 74% below its lowest level of over $ 68,000 in November, which was the month of Nasdaq’s latest record. Bitcoin is trading in tandem with the technology index, removing the crypto argument as a hedge of inflation like gold.
– Yun Li of CNBC, Peter Shacknow, Samantha Subin, Jesse Pound, Amelia Lucas and Ryan Brown, as well as NBC News and Reuters contributed to this report.
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