Here are the most important news, trends and analysis that investors need to start their trading day:
1. Stock futures flat after falling inflation, Fed fears
Marriner S. Eccles Federal Reserve Building in Washington DC, USA on Sunday, December 19, 2021
Samuel Corum | Bloomberg | Getty Images
U.S. stock futures were virtually flat on Friday, a day after a sharp sell-off triggered by higher-than-expected inflation data and St. Louis Federal Reserve President James Bullard’s call for a 100 basis point rate hike by July 1. To achieve this, central banks would have to make at least one 50 basis point raise if they acted each time during their three regular scheduled meetings – in March, May and June – before the deadline set by Bullard. Citi economists now see the Fed making a more aggressive 50 basis point hike in March. The market is expecting six 25 basis point rate hikes this year, starting in March, to curb soaring inflation.
2. 10-year bond yields hold above 2% at August 2019 highs.
That The yield on the 10-year Treasury slipped on Friday but remained above 2%, a level reached on Thursday for the first time since August 2019. The 2-year Treasury yield, the most sensitive duration to interest rates, traded at around 1.6% on Friday after a sharp rise. 26 basis points in the previous session, the biggest one-day move since 2009. Wall Street will wait for the release of the producer price index on Tuesday to see if inflation at the wholesale level was as high last month as Thursday’s CPI showed.
3. Dow, S&P 500 and Nasdaq weekly gains on a bubble
A trader works on the floor of the New York Stock Exchange.
If the market closes sharply lower on Friday, The Dow Jones Industrial Average, S&P 500 and Nasdaq may record losses for the week. All three stocks were higher last week, with the S&P 500 and Nasdaq having their best weeks of the year. The Nasdaq, still in correction, fell 2.1% on Thursday. The S&P 500 lost 1.8% and the Dow fell 526 points, or nearly 1.5%. All three quotations briefly turned positive on Thursday and then closed lower due to concerns about rising inflation and how aggressively the Fed will fight it.
4. Morning moves: Under Armor, Zillow and Affirm
The interior of an Under Armor store on November 3, 2021 in Houston, Texas.
Brandon Bell | Getty Images
Shares of Under Armor, after an initial 7% gain, fell 2.5% in premarket despite the retailer on Friday reporting fiscal fourth earnings and sales ahead of analysts’ estimates as cloud prospects curtailed by continued restrictions in supply chain, overshadowed these results. The company also warned that higher shipping costs will weigh on earnings in the coming months.
Zillow app on mobile hosted in Dobbs Ferry, New York, USA on Saturday, May 1, 2021.
Tiffany Hagler-Gird | Bloomberg | Getty Images
Shares of Zillow Group rose 13.5% in premarket trading on Friday, the morning after the real estate website operator reported a much smaller-than-expected adjusted quarterly loss of 42 cents a share. The company’s revenue was also better than expected. Zillow said it is exiting the home sales business faster and more economically than previously expected.
Home screen of Affirm Holdings Inc. website. on a smartphone in Little Falls, NJ on Wednesday, December 9, 2020
Gabby Jones | Bloomberg | Getty Images
Affirm shares fell another 10% in premarket trading. Shares of Buy Now, Pay Later fell more than 21% on Thursday after the early release of second-quarter financial results. Affirm lost 57 cents per share on $361 million in revenue. The company said that the human factor is to blame for the premature publication of the results.
5. Biden tells Americans in Ukraine to get out immediately
Members of the Armed Forces of Ukraine operate a tank during an exercise in the Kharkiv region, Ukraine, February 10, 2022.
Vyacheslav Madievsky | Reuters
the president Joe Biden is urging US citizens to leave Ukraine immediately as tensions with Russia over its military activities continue to escalate. “We are dealing with one of the largest armies in the world. It’s a very different situation and things can get crazy fast,” Biden said in an interview that aired Thursday on NBC Nightly News. On Thursday, Russia began a 10-day program of military exercises with its neighbor Belarus. NATO estimates that 30,000 Russian troops took part, marking Moscow’s largest military deployment to Belarus since the Cold War.
— Login Now for CNBC Investing Club to follow every move in Jim Cramer’s stock. Follow the wider market action like a pro on CNNBC Pro.