5 things to know before the stock market opens on Tuesday 5th April
Here are the most important news, trends and analysis that investors need to start their trading day:
1. Wall Street looks down after a two-game winning streak
Traders on the floor of the NYSE, April 4, 2022.
US stock futures fell Tuesday following consecutive Wall Street gains. The Nasdaq advanced nearly 2% earlier in the week as Twitter’s 27% surge on Elon Musk’s new stake in the social network triggered a rally in tech stocks. Twitter added another 5% in Tuesday’s premarket on news that Musk will join the Twitter board.
The stock market has entered a strong seasonal period, with April generally being one of the best months for equities. In fact, according to data from MKM Partners, the S&P 500 has recorded an average increase of 2.4% in April over the past 20 years. The index also recorded an April rise in 16 of the past 17 years.
2. Edit Button of Moss Poll Posts on Twitter; Amazon signs a missile deal
Hours after revealing a 9.2% passive share on Twitter, Musk asked platform users in a poll if they would like an edit button. More than 73% of the nearly 2.6 million respondents clicked “yse”, which was misspelled by Musk to say that the ability to edit posts should be added to Twitter.
Twitter CEO Parag Agrawal retweeted Musk and urged people to “vote carefully” as the consequences “will be important”. Tesla’s CEO’s investment, which made him Twitter’s largest shareholder, comes after he said he was considering building a new social media platform.
Artistic representations of the company rockets, from left to right: New Glenn, Vulcan Centaur and Ariane 6.
Blue Origin / United Launch Alliance / Arianespace
Amazon on Tuesday announced a major missile trade deal, signing with three companies for up to 83 launches of its Internet Project Kuiper satellites. One of the companies is Amazon founder Jeff Bezos’ Blue Origin. The Kuiper Project is Amazon’s plan to build a network of 3,236 satellites in low earth orbit to deliver high-speed Internet to anywhere in the world. The FCC in 2020 cleared Amazon’s system, which the company said it will “invest more than $ 10 billion” to build.
3. Bond yields rise and remain reversed; oil prices go up
Treasury yields rose Tuesday morning and key yield spreads – the 2-year / 10-year and the 5-year / 30-year – remained reversed. It is a bond market phenomenon that has often preceded economic downturns. Traders were selling bonds at the shorter end of the yield curve for fear that the Federal Reserve would become more aggressive in its tightening interest rate cycle. Bond prices move in the opposite direction to yields.
US oil prices extended gains on Tuesday amid supply concerns as the US and its European allies considered new sanctions against Moscow over war crimes allegations by Russian troops in Ukraine. West Texas Intermediate crude rose 1%, climbing to more than $ 104 a barrel after Monday’s 4% rise halted a two-session decline.
4. The EU will propose a ban on imports of Russian coal, sources say
Two EU officials, who did not want to be named due to the sensitivity of the talks, told CNBC on Tuesday that the European Commission would propose banning coal imports from Russia. Imposing sanctions on the Russian energy sector has been a challenge for the European Union, given the high level of dependence some countries have on Moscow. Ukrainian President Volodymyr Zelenskyy will speak at the UN Security Council meeting on Tuesday as images of atrocities surfaced as Russian troops withdrew from cities around Kiev.
5. Shanghai extends the blockade; BA.2 sub-variant 72% of US cases
In the latest Covid developments:
- The coronavirus outbreak in China’s largest city remains “extremely bleak,” according to the director of the Shanghai Outbreak Control Working Group. Most of the eastern part of Shanghai, which was supposed to reopen last Friday, has remained closed along with the western half of the city.
- The more contagious omicron BA.2 sub-variant now makes up 72% of Covid infections that have undergone genetic sequencing in the United States, according to data from the Centers for Disease Control and Prevention. BA.2 became dominant in the United States last week.
- Republicans and Senate Democrats reached a deal Monday on $ 10 billion in additional Covid funding to purchase therapies and vaccines and maintain the nation’s testing capacity if another wave of Covid hits the United States. The amount is less than half of the $ 22.5 billion first requested by President Joe Biden.
– CNBC reporters Yun Li, Samantha Subin, Pippa Stevens, Sam Shead, Michael Sheetz, Vicky McKeever And Spencer Kimball as well as The Associated Press and Reuters contributed to this report.
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