Here are the most important news, trends and analysis that investors need to start their trading day:
1. Futures sold out after the Fed’s Powell confused the markets
Pedestrians walk past the NASDAQ MarketSite in Times Square in New York City.
Eric Thayer | Reuters
U.S. stock futures were mixed on Friday, a day after a day’s sell-off in the market following hawkish comments from Federal Reserve Chairman Jerome Powell that wiped out a strong morning gain. The rise in bond yields, which continued on Friday, hit the Nasdaq particularly hard on Thursday, with the tech index falling 2% for the second consecutive session with big losses. The Nasdaq remained in a sharp correction and was close to bear market territory, as defined by a 20% or more drop from recent highs. The index last closed at a record high in November.
2. Bond yields skyrocket as hawkish Powell confirms recent Fed chatter
Jerome Powell, Chairman of the US Federal Reserve, attends the National Business Economics Association Economic Policy Conference in Washington, DC, USA, March 21, 2022.
Yasin Ozturk | Anadolu Agency | Getty Images
Reference The 10-year Treasury yield approached 3% on Friday as the short end of the yield curve hit a 5-year high at that level as Powell confirmed what many other Fed officials have been saying lately that interest rates could will have to increase at a faster pace to fight inflation. During an International Monetary Fund panel on Thursday, moderated by CNBC’s Sarah Eisen, the Fed chief said “50 basis points will be discussed at the May meeting.” The central bank raised rates by 25 basis points at its March meeting, the first increase in more than three years. The market is expecting rate hikes at each of the remaining six meetings in 2022.
3. Gap stock falls as outlook cuts and Old Navy CEO leaves
Traffic passes Old Navy and GAP stores in Times Square on March 1, 2019 in New York City.
Drew Angerer | Getty Images
Stock Gap fell about 15% in premarket trading on Friday, the morning after the clothing retailer cut its growth forecast due to increased competition and additional promotions. The company also announced that the CEO of its Old Navy division, Nancy Green, is leaving her post. Besides Old Navy and its eponymous brand, Gap is also behind the Banana Republic and Athleta lines. Gap said it will provide an updated guidance for fiscal 2022 when it reports quarterly results scheduled for May 26.
4. CNN+ will close on April 30, just one month after launch.
Jeep Wrangler Rubicon on the open track during the International Auto Show press preview at the Jacob Javits Convention Center in New York on April 13, 2022.
Timothy A. Clary | AFP | Getty Images
Warner Bros. Discovery is shutting down CNN+ at the end of the month, just weeks after launching its standalone streaming news service. The company said that customers will receive a pro rata refund of subscription fees. CNN+ had less than 10,000 daily active viewers in the two weeks after launch. The service rolled out just before the formerly WarnerMedia division of AT&T and Discovery completed their merger on April 8. Warner Bros. Discovery+ with other programs from WarnerMedia.
5. Florida Republicans vote to dissolve the Disney Special District.
Disney employee Nicholas Maldonado holds a sign during a protest outside Walt Disney World on March 22, 2022 in Orlando, Florida. Employees are going on strike today to protest the Walt Disney Co. to a controversial Florida law known as the Don’t Say Gay Bill.
Octavio Jones | News Getty Images | Getty Images
Republican-led Florida Legislature passed—and sent to Governor Ron DeSantis—a special district dissolution bill that allows the Walt Disney Company to exercise self-government within the outer boundaries of Orange and Osceola counties. DeSantis, widely regarded as a contender for the 2024 Republican presidential nomination, is embroiled in a bitter feud with Disney over the entertainment giant’s denunciation of Florida’s so-called “Don’t Say Gay” law, which restricts early childhood education of sexual orientation or gender. identity.
— CNBC Yoon Lee, Jeff Cox, Peter Shaknow, Lauren Thomas, Alex Sherman and Sarah Whitten contributed to this report.
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