Here are the most important news, trends and analysis that investors need to start their trading day:
1. Wall Street Looks Higher But Major Treasury Spreads Remain Inverted
Traders on the floor of the NYSE, March 31, 2022.
U.S. stock futures edged higher on Monday, with the tech-heavy Nasdaq looking the strongest. Twitter shares soared 25% in the pre-market after Elon Musk revealed a large stake in the social media company. The second quarter on Wall Street got off to a positive start on Friday, which was also the first day of April. Historically, April has been the best month of the year for stocks, with the S&P 500 gaining an average of 1.7%. The first quarter, which ended Thursday, was the worst of the first three months in two years, which included the lows of the Covid pandemic in late March 2020.
On Monday, the main bond yield spreads – the 2-year/10-year and the 5-year/30-year – remained inverted, a market distortion that occurred before past economic recessions. Bond yields rose on Friday. But the real strength was among short-term Treasuries, as traders worried that weaker-than-expected but still-robust job growth in March could give the Federal Reserve the green light to get more aggressive with its currency cycle. rise in interest rates.
U.S. oil prices jumped 3% above $100 a barrel on Monday as supply problems from disruptions from Russia’s war in Ukraine persisted. Crude fell about 13% last week after the United States announced it would release 1 million barrels a day of oil from its strategic petroleum reserve for six months from May to help combat high energy costs.
2. Twitter shares skyrocket after Elon Musk takes a big stake in the social network
Tesla Inc CEO Elon Musk attends the World Artificial Intelligence Conference (WAIC) in Shanghai, China, 29 August 2019.
Aly Song | Reuters
Musk, the outspoken CEO of Tesla and SpaceX and the world’s richest person, became Twitter’s biggest outside shareholder, shortly after criticizing the social network for what he called its fall on freedom of expression. According to a regulatory filing, Musk owns nearly 73.49 million shares of Twitter.
It’s a 9.2% stake, worth $3.6 billion based on Twitter’s premarket surge to over $49 per share. Although categorized in the filing as a passive stake, investors were outbidding shares of the company in case it might lead to something more.
- Over the weekend, Tesla reported first-quarter electric vehicle deliveries of 310,048, slightly below estimates but 67% higher than a year ago. Model 3 and Model Y vehicles accounted for 95% of first quarter figures. Deliveries are the closest approximation to sales figures reported by Tesla.
3. Starbucks ends stock buybacks as Howard Schultz returns as interim CEO
Marco Tacca Pier | Getty Images
Starbucks shares fell about 2.5% after the coffee chain suspended its share buyback program. Howard Schultz, who returns as interim CEO of Starbucks, wrote in a message to employees: “Effective immediately, we are suspending our stock buyback program. This decision will allow us to invest more profits in our employees and our stores – the only way to create long-term value for all stakeholders.”
- As Schultz steers the ship for now, his third term at the helm, Starbucks said it is looking for a permanent CEO following the retirement of Kevin Johnson.
4. Jamie Dimon sheds light on three forces that could shape the world
JP Morgan CEO Jamie Dimon speaks during the Boston College Chief Executives Club luncheon in Boston, Massachusetts, U.S. November 23, 2021.
Brian Snyder | Reuters
Jamie Dimon, CEO and chairman of the largest US bank by assets, highlighted a potentially unprecedented combination of risks facing the country in his annual letter to shareholders. JPMorgan’s Dimon wrote that three forces are likely to shape the world in the coming decades: a US economy rebounding from the pandemic; high inflation that will usher in an era of rising rates; and Russia’s invasion of Ukraine and the resulting humanitarian crisis. Dimon also said he believes the United States is in the midst of a boom that could “easily” continue into 2023.
5. Ukrainian President Volodymyr Zelensky accuses Russia of genocide
Ukrainian President Volodymyr Zelenskyy speaks during a speech, condemning what he says are war crimes by Russian troops in settlements around the Ukrainian capital, as Russia’s attack on Ukraine unfolds continues, in kyiv, Ukraine on April 3, 2022.
Ukrainian Presidential Press Service | Reuters
Ukrainian President Volodymyr Zelenskyy has accused Russian forces of committing genocide, saying Sunday morning that his people were “destroyed and exterminated”. Zelenskyy’s comments came following reported devastation in Bucha, a town 23 miles northwest of the capital kyiv, which was liberated by Ukrainian forces. In a video shown during Sunday night’s Grammy Awards, Zelenskyy implored artists to support Ukraine.
- The United States and its European allies are preparing to impose more sanctions on Russia following mounting evidence of war crimes committed by its forces in Ukraine.
- Russia’s chief negotiator said talks on the draft peace treaty would resume on Monday, but stressed the Kremlin’s stance on annexed Crimea and breakaway parts of the Donbass region remained unchanged.
— CNBC Journalists Samantha Subin, pippa stevens, Vicky McKeever, Fred Imbert, Lora Kolodny, Hugh’s son and Natasha Tourak as well as the Associated Press and Reuters contributed to this report.
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