5 things to know before the stock market opens Thursday, April 7
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These are the top news, trends and analyses that traders need in order to get started with trading.
1. After two days of Fed-driven selling, Wall Street appears steady
Traders working at the New York Stock Exchange, New York (NYSE) floor on March 29, 2022.
Brendan McDermid | Reuters
U.S. stock futuresWall Street was relatively calm Thursday as it tried to avoid losing three consecutive sessions. The NasdaqThe selling activity over the last two days was led by the Federal Reserve started to strike a more hawkish tone — sinking 2.2% on Wednesday, a day after about a 2.3% drop.
- Fed officials requested more aggressive tightening in order to combat inflation. However, the central bank decided against it. minutes from its March meetingIt was unanimously agreed to reduce its huge balance sheet by $95 Billion per month.
- These minutes showed that Fed officials had considered larger than usual rate hikes, 50 basis points. They were also considering a 25 basis-point increase last month. It was the first rise in three years.
2. The key Treasury yield spread has remained inverted following the employment claims data
Inversions like these have been seen before there were economic recessions. With the jobs market strong, the Fed may have room to slow the economy to fight inflation — threading the needle on its dual mandate of fostering maximum employment and controlling prices. It is likely that the central bank will raise interest rates at six of its last meetings in this year. It is not clear what the actual size of these increases will be.
3. Warren Buffett’s Berkshire Hathaway discloses a significant stake in HP
Warren Buffett attending Berkshire Hathaway’s annual Los Angeles meeting. May 1, 2021.
Gerard Miller | CNBC
Warren BuffettBerkshire Hathaway of has purchased a large stake in stock tech hardware HP Inc.It became the biggest shareholder in the computer and printer manufacturer. BerkshireHP purchased almost 121 million HP shares, which is roughly 11%. according to securities filingsBased on HP’s Wednesday closing stock price, this was a $4.2 million stake. This was before the 15% increase in HP shares that occurred in the premarket on Thursday following the announcement, which came hours after closing bell. Berkshire is more active lately, with an announcement of a deal for the purchase of an insurance company AlleghanyFor $11.6 billion, and buying shares in an energy company Occidental Petroleum.
4. Shell declares that it will write-off assets worth up to $5 billion after Russia exits
Royal Dutch Shell Products in Torzhok (Russia)
Andrey Rudakov | Bloomberg | Getty Images
ShellAccording to the announcement, Russia will postpone its withdrawal from Russia for between $4 billion-$5 billion. It is the first indication of what financial impacts could be on Western oil giants who have left Russia in response to Moscow’s provocative actions. invasion of Ukraine. Additional details about the effect of current developments in Ukraine can be found in Shell’s earnings report for quarter one, which will be available on May 5. the company said. Shell estimated Russia’s write-downs at $3.4 million in the past. Shell apologized last month after it bought heavily discounted Russian oil. It then announced that it would be withdrawing from Russia.
5. Ukraine demands NATO to provide more arms as Russia makes preparations for an offensive in the east
As Russia continues its attack on Ukraine, a funeral worker looks upon the bodies of civilians, taken from local streets and buried in a nearby cemetery. This is Bucha. It’s outside Kyiv. April 6, 2022.
Stringer | Reuters
Ukraine on Thursday appealed to NATO for more weaponsIt will fight Russia in order to stop further atrocities, such as the ones reported in Bucha just outside Kyiv. While the West has provided Ukraine with anti-aircraft and portable anti-tank weapons, they are reluctant to provide tanks, aircraft or other equipment that could be used for training purposes.
- Russian forces that failed to take Ukraine’s capital immediately are now regrouping in preparation for an offensive in east Ukraine. Moscow had earlier recognized Donetsk and Luhansk regions as independent states when it invaded the country.
— CNBC reporters Yun Li, Jeff Cox, Samantha Subin, Hannah Miao, Jesse Pound, Elliot SmithAnd Silvia AmaroAs well as The Associated Press, this report was contributed to by both.
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