5 things to know before the stock market opens Monday, May 2
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These are the top news, trends, and analyses that traders need in order to get started with trading.
1. After the worst month of 2008, futures plunge
Traders in the NYSE Floor, April 28, 2022.
Source: NYSE
U.S. stock futuresOn the 1st trading day in May, it fell to a record low. The NasdaqThe April month ended with the lowest performance in April since 2008, as investors were confronted by headwinds. These include a Federal Reserve that is more cautious and rising bond yields. Persistent inflation. Covid cases spikes in China. Russia’s ongoing war in Ukraine.
- The Nasdaq sank 4%On Friday alone, the market lost nearly 13.3% for April. The sell-off in tech stocks was the center of last month. It culminated with Amazon’s Thursday 14% fall, which is its largest single-session loss since 2006. This comes after it reported a weak quarterly report. Amazon had lost almost 2% during Monday’s premarket.
- The Breakthrough: Two-session wins streak broken Dow Jones Industrial AverageAnd the S&P 500Friday saw a loss of 2.8%, 3.6% and respectively on Friday. The Dow and S&P 500 had their worst months since March 2020, the month the Covid pandemicIt was officially declared. For April, the Dow fell 4.9%. The S&P 500 dropped 8.8% last month.
2. Bond yields rise again before the Fed meeting
Benchmark 10-year Treasury yieldOn Monday was making a run at 3% againThe, which traded at a low of 2.94 percent in late 2018, is now trading close to its 2018 peak. With expectations of a 50-basis point rise in interest rates, Wednesday’s Fed two-day May meeting will end. Markets expect a rate increase of at least 25% at the five remaining meetings of this year, to combat rampant inflation. In March, the Fed increased rates 25 basis points. This was the Fed’s first move of this nature in over three years. U.S. crude oil prices fell 3% Monday while they rose by 25 basis points in March. were still above $100 per barrel. The inflationary pressures have increased as a result.
3. The pace of slower growth is evident in earnings for the March quarter
This week’s earnings season is continuing, but at a slower rate.
- Eighty percent of S&P 500 companies have reported positive earnings per share surprises for Q1, above the five-year average of 77%, according to FactSet.
- So far, the March quarter blended earnings growth rate, which includes reported results and estimates from S&P 500 companies yet to report, is 7.1%. This would be the lowest year-over-year increase since 2020’s December quarter.
- For the current quarter, 26 S&P 500 companies have issued negative EPS guidance and 17 have issued positive EPS guidance.
4. Buffett: Berkshire buys more Apple shares
Warren Buffett speaking at a press conference in the Berkshire Hathaway Shareholders meeting, April 30, 2022.
CNBC
5. Moderna Covid vaccine may be cleared first for children younger than 5 years old
Based on ModernaCovid is a vaccine that protects children aged 6 and under. will be readyA panel of Food and Drug Administration officials will review the application when they meet in June. Moderna requested emergency authorization last week for the treatment. Moderna’s vaccine may be the first one to receive U.S. approval. PfizerIt expects that its data on vaccines for children below 5 years old will be available by June’s review. Pfizer has already approved the regimen for all children under 5 years of age.
— CNBC’s Pippa Stevens, Hannah Miao, Tanaya Macheel, Matt Clinch Yun LiThis report was also contributed by Reuters.
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