Stock Groups

5 things to know before the stock market opens Monday, May 16

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These are the top news, trends, and analyses that traders need in order to get started with trading.

1. After seven consecutive weeks of selling, Dow to open lower

Traders in New York City work on the New York Stock Exchange floor (NYSE), New York City, U.S.A, May 13, 2022. 

Brendan Mcdermid | Reuters

U.S. stock futuresThe Monday drop was due to the Dow Jones Industrial AverageIt was the first time this has happened in nearly two decades that it had declined seven weeks in succession. The S&P 500And the NasdaqBoth dropped six consecutive weeks, the first since 2012 and 2011 respectively.

  • Despite Friday’s strong rallyAll three benchmark stock stocks finished the week with losses exceeding 2%, led by the Nasdaq 3.8% gain. The Nasdaq remained in a bear market, with the Dow and the S&P 500 both in sharp corrections.
  • The 10-year Treasury yieldTuesday was fairly steady at just below 3% U.S. oil pricesThe barrels dropped slightly, but still averaged $109 per barrel. CryptoIt fell again with bitcoinEarly Monday, it was around $30,000
  • The retail earnings season begins Tuesday, and April’s data on retail sales will be released by the government. These reports will provide insight for investors on consumer reactions to inflation, and whether there is a price increase. Federal ReserveYou might feel compelled to raise interest rates more aggressively to reduce price pressures.

2. JetBlue turns down Spirit Airlines’ takeover offer

JetBlue jet lands at Fort Lauderdale Hollywood International Airport after passing Spirit Airlines aircraft on Tuesday, April 25, 2022. (Joe Cavaretta/Sun Sentinel/Tribune News Service via Getty Images)

Joe Cavaretta | Sun Sentinel | Getty Images

JetBlue AirwaysMonday’s all-cash deal to purchase was taken Spirit Airlines hostile. In a letter to Spirit shareholdersJetBlue was willing to pay $30 per share for a transaction and said it is ready to move to $33 once the board agrees to negotiate. Premarket trading saw Spirit shares rise nearly 10%, to $18 per share. This is far less than what was offered.

  • Earlier this monthSpirit rejected JetBlue’s offer for all cash of $33 per shares, or $3.6 Billion, due to regulatory concerns. Spirit maintained that the merger with an ultra-low-cost carrier was the best option. Frontier AirlinesThe February agreement, valued at $2.9Billion was struck.

3. Putin’s Ukraine conflict forces McDonald’s Russia Business to be sold by McDonald’s

An elderly woman walks down a street, passing by a poster offering employment at McDonald’s in Pokrov (Russian Vladimir Region), March 21, 2022.

Evgenia Novozhenina | Reuters

McDonald’sIt announced Monday that it would sell its Russian business, just two months after suspending operations there due to unprovoked protests invasion of Ukraine. McDonald’s claimed that Russia’s continued ownership is “not sustainable” and was inconsistent with their values.

It was 32 years since McDonald’s opened its first Russian restaurant. In Russia, there are over 800 McDonald’s restaurants with 62,000 employees. It claimed that it employs over 800 people in Russia. seeking a local buyer. This is the starkest indication yet of how hostile the West has been to Russian President Putin’s Monday McDonald’s announcement Vladimir Putin‘s regime.

4. Tesla claims to have delayed its Shanghai production ramp up

On April 25, 2021, a truck left the Tesla Shanghai Gigafactory in Shanghai.

Getty Images| Getty Images

TeslaThe plan to return production to Shanghai to the levels of before Shanghai has been postponed by at most a week CovidYou can lock down more than six weeks before you do. according ReutersCiting an internal memo, Shanghai is China’s largest city. Companies are not allowed to reopen until they have such an agreement in place. This requires that workers be isolated.

Shanghai hopes to reopen widely and to allow normal living to resume beginning June 1. a city official said MondayAfter declaring that 15 out of 16 district had eradicated cases from areas outside the quarantine area, he was able to declare his approval. Over the past three week, there have been dozens more Covid cases discovered in Beijing. While the Chinese capital isn’t under lockdown across the city, virus mitigation measures are in place.

5. Elon Musk claims Twitter’s legal team pursued him for bot tweets

Elon MuskThe CEO TeslaSpaceX and SpaceX on Saturday tweetedThat TwitterHis legal team accuse him of breaking a confidentiality agreement when he revealed the sample size used to check automated users on social media. Twitter legal called to inform me that they had violated the NDA. He revealed that the bot sample size was 100.

Musk tweeted Friday that the $44 billion deal to privatize the company was temporarily suspended while he waits for data about the number of fake accounts. He said in a second tweet that he is “still committed to” the deal. Twitter’s shares dropped more than 2% on Monday after an emotional roller-coaster Friday.

— CNBC’s Tanaya Macheel, Abigail Ng, Samantha Subin, Jesse Pound, Leslie Josephs Mike CaliaThis report also included contributions from Reuters.

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