Here are the most important news, trends and analysis that investors need to start their trading day:
1. Wall Street looks stable; key treasury spreads remain inverted
Traders on the NYSE floor, March 31, 2022
Source: New York Stock Exchange.
U.S. stock futures were mixed on Monday, with the Nasdaq tech index looking modestly higher. Shares of Twitter rose about 22% in premarket trading after Elon Musk announced a large stake in the social network. The second quarter on Wall Street started positively on Friday, which was also the first day of April. April has historically been the best month of the year for equities, with the S&P 500 gaining an average of 1.7%. The first quarter ended on Thursday was the worst of the first three months in two years, including Covid pandemic lows at the end of March 2020.
Monday’s key bond yield spreads – 2-year/10-year and 5-year/30-year – remained inverted, a market distortion that occurred before past economic recessions. Bond yields rose on Friday. But the real strength was among short-term Treasuries, as traders feared that weaker-than-expected but still solid job growth in March could give the Federal Reserve the green light for a more aggressive rate hike.
U.S. oil prices jumped 3% on Monday, still around $100 a barrel, as supply concerns persisted due to disruptions due to Russia’s war in Ukraine. Oil did fall about 13% last week after the US announced it would release 1 million barrels a day from its Strategic Petroleum Reserve for six months starting in May to help fight rising energy prices.
2. Twitter shares soared after Elon Musk acquired a large stake in the social network
Tesla Inc CEO Elon Musk attends the World Artificial Intelligence Conference (WAIC) in Shanghai, China, 29 August 2019.
Ali Song | Reuters
Musk, outspoken The CEO of Tesla and SpaceX and the world’s richest man became Twitter’s largest outside shareholder shortly after he criticized the social network for what he said was its fall on freedom of speech. Musk owns nearly 73.49 million shares of Twitter, according to regulations.
That’s a 9.2% stake worth $3.6 billion, based on premarket Twitter shares rising to over $49 a share. Although they were classified as a passive share in the application, investors offered shares of the company higher, hoping that this could lead to something more.
- Over the weekend, Tesla reported first-quarter electric vehicle shipments of 310,048 units, slightly below estimates but up 67% from a year ago. Model 3 and Model Y vehicles accounted for 95% of the total vehicles in the first quarter. Deliveries are the closest approximation to the sales figures reported by Tesla.
3. Starbucks ends share buybacks as Howard Schultz returns as interim CEO.
Pier Marco Tacca | Getty Images
Starbucks shares fell about 4% after the coffee chain suspended its share buyback program. Howard Schultz, who is returning as interim CEO of Starbucks, sent a message to staff: “From now on, we are suspending our share buyback program. This decision will allow us to invest more profits in our employees and our stores – the only way to create long-term value for all stakeholders.”
- Schultz currently runs the ship, his third tenure at the helm, Starbucks said it is looking for a permanent CEO after Kevin Johnson retires.
4. Jamie Dimon identifies three forces that can change the world
JP Morgan CEO Jamie Dimon speaks at the Boston College Executives Club Luncheon in Boston, Massachusetts, USA on November 23, 2021.
Brian Snyder | Reuters
Jamie Dimon, CEO and chairman of the largest US bank by assets, pointed to the potentially unprecedented combination of risks facing the country in his annual letter to shareholders. JPMorgan’s Dimon wrote that three forces are likely to shape the world over the next few decades: the US economy is recovering from the pandemic; high inflation, which will usher in an era of rising rates; and the Russian invasion of Ukraine and the ensuing humanitarian crisis. Dimon also said he believes the US is in the midst of a boom that could “easily” escalate into 2023.
5. Ukrainian President Volodymyr Zelensky accuses Russia of genocide
Ukrainian President Volodymyr Zelenskyy speaks during an address condemning what he calls the war crimes of Russian troops in communities around the Ukrainian capital as Russia continues its advance into Ukraine, in Kyiv, Ukraine April 3, 2022.
Press Service of the President of Ukraine | Reuters
President of Ukraine Volodymyr Zelensky accused Russian forces of committing genocide, saying on Sunday morning that his people were “destroyed and exterminated.” Zelenskiy’s comments came after reports of devastation in Bucha, a city 27 miles northwest of Kyiv that was liberated by Ukrainian forces. In a video shown during Sunday’s Grammy Awards, Zelenskiy urged artists to support Ukraine.
- The United States and its European allies are preparing to impose additional sanctions on Russia after growing evidence of war crimes committed by their forces in Ukraine emerges.
- Russia’s top spokesman said talks on a draft peace treaty would resume on Monday, but stressed that the Kremlin’s stance on annexed Crimea and separatist parts of Donbass remains unchanged.
CNN correspondents. Samantha Subin, pippa stevens, Vicki McKeever, Fred Imbert, Laura Kolodny, Hugh Son as well as Natasha Turak and the Associated Press and Reuters contributed to this report.
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