May 27, 2022

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Stock futures drift as investors await a flurry of economic reports

Stock futures drift as investors await a flurry of economic reports

US stock futures approached the break-even point in pre-market trading on Monday as investors braced for… A busy week with key economic data It could make the Fed work more aggressively on interest rate hike plans.

Futures related to the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 were mostly flat before the open after all three major indexes posted. Second week in a row of gains on Friday to close at a one-month high. Meanwhile, bond yields continued to climb, with 10-year US Treasuries rising to 2.5% on Monday morning.

Investors are starting to drive interest rates higher this year after recent comments from Federal Reserve Chairman Jerome Powell To 50 basis points was on the table Meanwhile, officials tend to raise borrowing costs in order to curb high inflation levels. Economic data out of Washington this week may further fuel expectations that central bank policy makers may go ahead with a half-point hike.

The all-important March jobs report is the most important economic report this week. The tightening of the labor market was a strong inspiration for the Fed’s decision to rein in monetary policy, with the momentum of the economic recovery suggesting to officials that the US economy could weather less favorable financial conditions. Moreover, while an improving labor market is a good thing for families in the United States, widespread employment opportunities have made room for significant pressure on workers, driving up wage gains and increasing inflationary pressures. The report is likely to show another strong reading with payrolls expected to rise by 490K, according to estimates by Bloomberg economists.

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“The jobs report may be the biggest yet in this pandemic recovery,” Christopher Robke, chief economist at FWDBONDS, said in a recent note. “Fed officials are already grumbling about a 50 basis point interest rate hike in upcoming meetings, and the tightest labor market since the 1960s is like pouring gasoline on a fire as any political official worth their salt burns with a desire for interest rates to reach 2% levels. neutral now.”

Another focal point for traders on the economic data front this week is the new monthly Personal Consumption Expenditure (PCE) reading due on Thursday. The scale is another indicator of how quickly prices are rising across the country. Economists unanimously expect PCE to post a rise of another 0.6% in February, according to Bloomberg data. The core PCE index, which the Fed uses to manage monetary policy, is also expected to show an increase when the print edition is published on Wednesday. Conforming economists are looking at a 5.5% increase in core personal consumption expenditures in February, compared to January’s 5.2% rise.

The ongoing Russian invasion of Ukraine remains on investors’ radar. US officials have retracted controversial comments made by President Joe Biden over the weekend that appeared to call for the impeachment of Russian President Vladimir Putin during a speech in Poland.

Secretary of State Anthony Blinken told reporters Sunday during a visit to Israel that the United States is not seeking to remove Putin from power.

“You know, and as you’ve heard us say over and over again, we don’t have a strategy for regime change in Russia or anywhere else,” Blinken said. “In this case, as in any case, it is up to the people of the country in question. It is up to the Russian people.”

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7:55 a.m. ET: Stock futures are flat after indexes posted two consecutive weeks of gains.

After nine consecutive sessions of gains, Apple Inc. (AAPL) is poised to cap its longest winning streak this year after a report that the iPhone maker is cutting production of iPhone SEs by about 20% in the next quarter due to lower consumer electronics demand.

Apple shares were down 2% in pre-market trading on Monday. Apple was trading at $172.48 per share as of 7:53 AM ET.

The tech giant also slashed orders for AirPod earbuds by more than 10 million units for 2022. AirPods have become the most widely sold wireless headphones, helping Apple capture more than 25% of the global market share, according to Bloomberg, which cited Research the corresponding company.

Meanwhile, Apple won an Academy Award for “CODA”, which Apple released on Sunday It could also be a win for the company in the broadcast race.

“If Apple wins Best Picture Desired with CODA, it will spur more A+ talent coming to Apple first (or in the top tier) and could drive Cupertino’s content efforts in multipliers over the coming years with a significant increase in paid subscribers,” he said. Dan Ives, technology analyst at Wedbush before the awards ceremony.

Hangzhou, China – April 24, 2020 – A customer shows a newly purchased phone Se in Hangzhou, Zhejiang Province, China, on April 24, 2020. On the same day, Apple’s new iPhone SE was officially launched in the world. – Costfoto/Barcroft Studios/Future Publishing (Costfoto/Barcroft Media image credit should be read via Getty Images)

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7:36 a.m. ET: Stock futures are flat after indexes posted two consecutive weeks of gains.

Here are the major market moves in Monday’s pre-market trading:

  • S&P 500 futures contracts (ES = F.): +1.25 points (+0.03%) to 4,537.75

  • Dow futures contractsYM = F.): +22.00 points (+0.06%) to 34781.00

  • Nasdaq futures contractsNQ = F.): – 12.25 points (-0.08%) to 14,743.50 points

  • raw (CL = F.):- $5.29 (-4.64%) to $108.61 per barrel

  • gold (GC = F.): – $24.70 (-1.26%) to $1,929.50 per ounce

  • Treasury for 10 years (^ degeneration): 0.00 basis points to produce 2.492%

A trader works on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York City, US, March 7, 2022. REUTERS/Andrew Kelly

A trader works on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York City, US, March 7, 2022. REUTERS/Andrew Kelly

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed

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