5 things to know before the stock market opens on Tuesday

5 things to know before the stock market opens on Tuesday

Here are the most important news, trends and analyzes that investors need to start the trading day:

1. Wall Street will bounce back after the worst search of the S&P 500 since 2020.

The Wall Street sign can be seen with American flags in front of the New York Stock Exchange.

Iuki Ivamura | Afp | Getty Images

Dow futures jumped 400 points, or 1.4%, on Tuesday, after a terrible week of sales. The S&P 500 and Nasdaq futures rose about 1.5% to start the week shortened for the holidays. The yield of the 10-year treasury on Tuesday remained below the 2011 high, nearly 3.28%, a level that helps reduce pressure on stocks. After last week’s largest increase in the Federal Reserve’s interest rate since 1994 in order to fight inflation, Fed President Jerome Powell is due to submit his semi-annual report on monetary policy to Congress on Wednesday and Thursday.

  • The weekly drop in the S&P 500 index of 5.8 percent was the worst since March 2020, the month when the Covid pandemic was declared, because investors were worried about the recession.
  • Dov closed below 30,000 again on Friday and lost 4.8% last week. This is the weakest weekly performance for an average of 30 shares since October 2020.
  • There are no superlatives for Nasdaq’s weekly loss of 4.8% with poor performance.
  • All three stock benchmarks fell for three consecutive weeks. The S&P 500 and Nasdaq have recorded weekly losses in 10 of the last 11 sessions, both in bear markets. The negative week of Dow was the 11th of the previous 12, with a sharp correction.

2. U.S. oil prices recovered from some of the sharp declines last week

West Texas Intermediate, the U.S. benchmark for oil, rose 2% to about $ 110 a barrel on Tuesday, triggering strong market growth in energy supplies. However, VTI sank by more than 9% last week, breaking a seven-week winning streak and falling about 15% below its 13-year highs of $ 130.50 in early March on Friday. Concerns about supply and demand due to geopolitical factors, including the Russian war in Ukraine and Chinese restrictions and restrictions to alleviate Covid, have sustained the increase in oil and gasoline.

  • But as of Tuesday, the national average per gallon of gas has fallen below $ 5. However, that is still very high, and President Joe Biden said on Monday that he is seriously considering a temporary suspension of the federal gas tax before July 4.

3. Kelogg plans to separate; JetBlue raises its Spirit offering

Kellogg announced on Tuesday plans to split into three independent companies. The food giant will single out its North American cereals business and plant-based department, units that accounted for about 20% of its revenue last year. The third independent company will be the remaining businesses – including its brands of snacks, noodles, international cereals and frozen breakfasts in North America, which accounted for about 80% of its sales in 2021. CEO Steve Cahillane told CNBC on Tuesday that the name Kelogg is likely to be in a way keep. Shares of Kellogg jumped 6% on the premarket after the announcement.

Shares of Spirit Airlines jumped 9% in the pre-sale market on Tuesday, but remained below JetBlue’s sweetened takeover bid of $ 33.50 per share on Monday. Spirit said last week that he was in talks with JetBlue about his offer and that he expected to make a decision on the proposal by June 30. JetBlue said its proposal represents a 68% premium over the default value of the competitive offer for shares and cash from parent company Frontier Airlines.

4. Mask says that 3 problems need to be solved in order to move the redemption of Twitter forward

Elon Musk said that there are three main obstacles that need to be overcome before he finishes the purchase of Twitter for 44 billion dollars. In an interview with Bloomberg on Tuesday, the CEO of Tesla and SpaceX said that there are a number of “unresolved issues” that will have to be resolved before he can proceed with the takeover: fake accounts, debt financing and Twitter shareholder approval. The fate of the agreement has become more uncertain in recent weeks after Musk threatened to leave due to questions about Twitter’s revelations of the number of unwanted 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 as much as $ 17,600 on Saturday, falling below a crucial $ 20,000 for the first time since December 2020. At its lowest point on Saturday, bitcoin was about 74% below its all-time high of more than $ 68,000 in November. which was the month of Nasdaq’s last record. Bitcoin is traded in tandem with the technology index, disproving the crypto argument as protection against inflation like gold.

– CNBC Yun Li, Peter Schacknov, Samantha Subin, Jesse Pound, Amelia Lucas i Ryan Brown as well as NBC News and Reuters contributed to this report.

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