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5 Things To Know Before The Stock Market Opens On Monday, January 10th

January 10, 2022
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Here are the most important news, trends and analysis that investors need to start their trading day:

1. Nasdaq, S&P 500 will fall for 5 sessions in a row

The Nasdaq logo is displayed at the Nasdaq Market in Times Square, New York, December 3, 2021.

Gina Moon | Reuters

US stock futures fell on Monday after a tough first week of the new year as tech stocks were hit by rising bond yields. The Nasdaq recorded a losing streak of four sessions on Friday, with the biggest losses hitting last Wednesday. Over the week, the tech index fell 4.5%, its worst weekly reading since February 2021. The S&P 500 also tracked a losing streak of five sessions on Monday. The index has dropped 1.9% over the past week. The Dow Jones Industrial Average, which fell for three straight sessions, fell 0.3% last week. The Dow and S&P 500 hit record highs early last week.

2. Goldman Sachs raises its forecast of the Fed rate hike to four times this year.

The bond yield rose on Monday, with a benchmark 10-year yield trading at 1.77% after hitting a January 2020 high above 1.8% on Friday. Goldman Sachs expects the Federal Reserve to raise interest rates from near-zero four times this year as inflation rises and unemployment falls. Minutes after its December meeting, the Fed spoke about the balance sheet cut in addition to signaling rate hikes and accelerating cuts. Fed Chairman Jerome Powell is due to testify at a hearing on his candidacy before a Senate commission on Tuesday.

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3. The week ahead: Powell’s rumors, inflation and earnings

Consumer and wholesale inflation reports will be released on Wednesday and Thursday this week. Economists are expecting another hot month for both indicators, although some economists think inflation is close to its peak. At 6.8%, the November CPI was the highest since 1982. There were no retail sales on Friday. The earnings season also kicks off with quarterly results from Delta Air Lines on Thursday and JPMorgan Chase, Citigroup and Wells Fargo on Friday.

4. Take-Two buys Zynga, which shares rose after the deal

A sign at Zynga headquarters in San Francisco, California, USA, Wednesday August 4, 2021. Zynga Inc. will publish earnings data on Aug. 5.

David Paul Morris | Bloomberg | Getty Images

Take-Two Interactive said Monday it would buy mobile game maker Zynga in a cash and stock deal worth nearly $ 12.7 billion. Take-Two said it would acquire all of Zynga’s outstanding shares at $ 9.86 a share, up 64% from Friday’s close, largely reflected in pre-market trading on Monday. Take-Two shares fell about 10% premarket. The deal is expected to close by the end of June.

5. Lululemon reports fourth-quarter earnings, sales dropped due to omicron

The logo of the Canadian sportswear retailer Lululemon in one of their stores.

Alex Tai | Light rocket | Getty Images

Lululemon stock came under pressure after the retailer and apparel maker said Monday morning that fiscal fourth quarter earnings and revenues are likely to be low in estimates. The company blames staff shortages and reduced store opening hours for this as Covid cases in the US have skyrocketed due to the omicron variant. Shares lost more than 7% premarket.

– Reuters contributed to this report. Follow all market activity like a professional on CNBC Pro… Get the latest pandemic news with CNBC Coronavirus Coverage…


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January 10, 2022
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