May 19, 2022


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5 things to know before the stock market opens Wednesday, April 6

5 things to know before the stock market opens Wednesday, April 6

Here are the top news, trends and analysis that investors need to start their trading day:

1. Stock futures drop, adding to Tuesday’s drop on Fed fears

Traders on the floor of the New York Stock Exchange, March 31, 2022.

Source: NYSE

US stock futures It fell on Wednesday as investors awaited more insight into what appears to be the Federal Reserve’s shift to the path of more aggressive monetary policy tightening. The minutes of the Fed’s March meeting, which included the first rate hike in more than three years, will be released at 2 p.m. ET. The market is seeing a gain of at least 0.25% at all the remaining six Fed meetings this year, with even greater gains of 0.5% likely in May and June. Fed Governor Lyle BrainardThe central bank, which usually favors loose policy and low interest rates, said on Tuesday He needs to act fast and aggressively to reduce inflation. I posted those comments Wall Street down Bond yields are near three-year highs again.

2. High bond yields, resulting in higher mortgage rates, resulting in lower demand for housing loans

In fact, 30-year fixed rate mortgages topped 5% Tuesday. The high rate environment has sent the total volume of housing loan applications down another 6% According to the Mortgage Bankers Association last week. This is a 41% decrease from the same week a year ago.

3. Oil CEOs, Yelling to Testify at Separate Hearings on the Russo-Ukrainian War

Oil prices remained high On Wednesday, concerns about supplies emerged, as the United States and its European allies considered more sanctions on Moscow as allegations surfaced about wartime atrocities by Russian forces in Ukraine. The President of the European Council said that Russia is imposing sanctions on oil and gas Sooner or later. The rise in crude oil prices, in turn, led to a rise in gasoline prices. CEOs of oil companies among them chevron And the exon, to testify Wednesday before a House committee on what they’re doing to control energy costs. At another hearing in the House of Representatives, the Secretary of the Treasury Janet Yellen He is scheduled to talk about the global impact of Russia’s invasion of Ukraine on the global economy.

4. JetBlue tops Frontier with $3.6 billion cash offer for Spirit Airlines

A Spirit Airlines plane on the tarmac at Fort Lauderdale-Hollywood International Airport on February 7, 2022 in Fort Lauderdale, Florida.

Joe Riddell | Getty Images

JetBlue Airways made that unwanted $3.6 billion full cash offer for Spirit Airlineswhich raises questions about Spirit’s merger deal with a rival discount company Frontier Airlines. Spirit said its board was evaluating the JetBlue proposal, which is 33% higher View stock and cash from Frontier. Trading in Spirit shares was halted before the market closed on Tuesday after the stock jumped more than 22%. Spirit shares fell on Wednesday. Frontier was also lower on the market.

5. Musk has spent $2.64 billion on Twitter posts so far this year, for presentations

Elon Musk speaks at the World Auto News Conference at the Renaissance Center in Detroit, Michigan.

Rebecca Cook | Reuters

Tesla Executive Director Elon Musk Buying succeeded Twitter shares on an almost daily basis since the end of January, spending $2.64 billion on his current stake in the company, According to a regulatory filing Tuesday. The reveal came in 13D, confirming Musk’s intent to be more active in the Twitter business. He was announced as a new member of the board of directors earlier on Tuesday. Twitter also confirmed it was testing an edit button, which was the subject of a Musk Twitter poll on Monday, hours after a file revealed it had acquired more than 9% of the social network’s share.

CNBC correspondents Jeff CoxAnd the Diana OlekAnd the Leslie JosephsAnd the Laura Kolodny And the Jordan Novett The Associated Press and Reuters also contributed to this report.

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