Here are five things you need to know for Monday, April 11:
1. – Stock Futures Edge Lower, Oil Price Slide
U.S. equity futures fell on Monday, while Treasury bonds and the dollar tested several-year gains as investors focused on earnings from the ongoing war in Ukraine and data release during the holiday-shortened trading week.
Inflation is the main driver in terms of bond market performance on Monday, and this week there are important measurements of both producer prices and consumer prices, each of which is expected to accelerate to decades of high, with traders setting prices at a faster and deeper rate. The rise from the Federal Reserve, in turn, raises daily rates in the U.S. Treasury market.
CME Group’s FedWatch tool has a 79.4% chance of gaining 50 basis points from Federer in May, followed by a 52.1% chance of moving follow-on in May, and a 23.3% chance of a third 50 basis point increase in July. .
Meanwhile, the benchmark 10-year Treasury paper yield, which touched 2.784% in overnight trade, was the highest since January 2019, with industrial gate inflation rising to 8.3% in March last year, following China’s data, indicating the country’s recent coveted struggle to cope. The rise will continue to affect global supply chains and the accompanying upward price pressures.
However, some relief at the Energy Front was provided by the fall in oil prices, which prolonged their Friday decline of 240 million barrels as investors prepared to release crude – or one million barrels per day between now and the end of the year – as part of an integrated program between the United States and its allies. To mitigate the impact of sanctions and sanctions on Russian energy exports.
WTI crude futures for May delivery were down $ 2.56 at $ 100.21 a barrel, while Brent contracts for June fell to $ 2.49 to $ 100.29 a barrel.
On Wall Street, futures traded higher against the Dow Jones Industrial Average, indicating a modest 10-point opening hour slump, while those with the S&P 500 fell 5.83% year-on-year to 11 points per slide. Futures linked to technology-focused Nastok see a 95-point opening hour decline.
2. – Week ago: Focus on rising inflation, retail data
Investors will be guided by a calendar full of top data releases during the Easter-brief week, highlighted by a key reading of March inflation on Tuesday, which is expected to generate the fastest headline rate in more than forty years.
Rents, used car prices and healthcare costs – making up the bulk of the basic CPE reading – continue to rise, and with their recent multi-year increases in energy and food prices – the headline readings – the Department of Commerce raises its formal estimate at 8:30 a.m. Eastern time Analysts expect the annual inflation rate to be 8.4% at the time of publication.
Factory gate measurements will continue on Wednesday as we look at the strength of U.S. consumers in the form of Thursday jobless claims and March retail sales data.
Overall, these publications may indicate how long the Fed expects inflation to exceed its 2% target – with some forecasts until late 2023 – and what kind of second-round effects the rise will have. Consumer cost and confidence.
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3. – Revenue Outlook: JPMorgan leads the banking sector as profit growth slows
The first-quarter corporate reporting season begins this week with enthusiasm, as well as updates from the country’s largest banks, which could set the tone for a significant decline in the pace of profit growth.
The combined profits of the S&P 500 companies are expected to grow by 6.1% over the previous year
JPMorgan Chase & Co. (JPM) – JPMorgan Chase & Co. Get the reportGoldman Sachs Team (G.S.) – Goldman Sachs Group, Inc. Get the reportWells Fargo (WFC.PRN) Citigroup (C) – Citigroup Inc. Get the reportMorgan Stanley (Ms.) – Get Morgan Stanley ReportUnited Health Group UNH will begin releasing March quarterly earnings on Wednesday, with about 14 S&P 500 companies set to renew over a four-day period.
In forecasting profit growth for the second quarter, and showing signs of strength in the broader economy – this is an increase of 6.7%, with analysts currently estimating revenue for the June quarter to be around $ 470 billion. From 2021.
4. – AT&T shares fall as traders adjust for Warner Bros. Discovery trading launch
AT&T (D.) – AT&T Inc. Get the report Shares plummeted in pre-market trading as investors adjusted to its $ 43 billion media merger with Discovery. (Disc) – Discovery, Inc. Get a Class A report Business will start today.
Warner Bros. Discovery Inc. Following A&T’s decision to spark its interest in WarnerMedia earlier this year, CEO David Jaslow will be trading with Nasdaq today under the ticker logo ‘WBD’ with CEO. AT&T Shareholders will hold 71% of the combined group, with the remaining 29% to be held by Discovery Partners.
The move provides media assets to the newly formed group, including lucrative streaming services such as Discovery Channel, Warner Bros. Entertainment, CNN, HBO and the Cartoon Network and HBO Max and Discovery +.
AT&T shares traded 23% lower in pre-market trading, with a starting price of $ 18.58 each, while Discovery traded down 0.1% at $ 24.41 each.
5. – Twitter Kasturi board seat, scraps contract to issue shares slide
Twitter (TWTR) – Twitter, Inc. Get the report Shares in pre-market trading plummeted after the social media group canceled a deal to bring Elon Musk, Tesla’s CEO and billionaire investor, to its board of directors.
Musk, who announced a 9.1% stake in the micro-blogging website last week, was eager to gain his place in the group on Saturday and spoke publicly about his desire to make ‘significant’ changes in the company.
However, CEO Barack Agarwal said late on Sunday that Musk had “refused to join our group” following calls for “multiple discussions” but declined to comment.
The move would see Musk, who has only raised a 14.9% stake in Twitter, use his vast $ 300 billion fortune or privately press to acquire Twitter, currently worth $ 37 billion, in order to take the board seat. Becomes the single-largest partner of the group.
Shares of Twitter traded down 3.4% in pre-market trading at $ 44.65 each.