Here are the most important news, trends and analysis that investors need to start their trading day:
1. Wall Street poised to wrap up strong month but weak quarter
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, March 30, 2022.
Brendan McDermid | Reuters
U.S. stock futures were little changed on Thursday as bond yields and oil prices fell. Major international oil producers in OPEC+ were meeting under pressure to increase production to mitigate high crude and gasoline prices as the United States considered releasing supplies from its strategic oil reserves . On Wednesday, the Dow Jones Industrial Average and S&P 500 snapped their four-game winning streaks and the Nasdaq fell for the first time in three days. With one day remaining in March, all three stock indexes were solidly higher for the month. However, as the wild first quarter comes to an end, Wall Street was tracking the first three months of 2022.
- Dow Apple stock rose pre-market, the morning after seeing its 11-game winning streak come to an end by 18%. Walgreens Boots Alliance, also a component of the Dow Jones, fell 1% in premarket Thursday, shortly after reporting better-than-expected earnings and revenue. The results were helped by increased demand for reminders and Covid testing due to the spread of the omicron variant during the winter months.
2. Oil sinks ahead of OPEC+ decision, US crude release reports
The OPEC logo pictured ahead of an informal meeting between members of the Organization of the Petroleum Exporting Countries (OPEC) in Algiers, Algeria.
Ramzi Boudin | Reuters
West Texas Intermediate crude, the U.S. oil benchmark, fell 6% to around $101 a barrel on Thursday as traders await news from OPEC+ on its production plans. President Joe Biden is due to deliver remarks on Thursday, with media saying he will detail his plans to release 1 million barrels of oil a day for several months from the US Strategic Petroleum Reserve.
- The move would be aimed at mitigating oil and gas prices that surged following the Russian invasion of Ukraine and the resulting supply problems, leading to spikes in inflation in the global economy. Russia is a major oil exporter – and unprecedented sanctions for its unprovoked war have disrupted flows.
3. Yield spreads remain tight ahead of key jobs and inflation data
Treasury yields fell on Thursday, but key spreads – 5-year and 30-year as well as 2-year and 10-year – remained tight. The 5-year Treasury yield reversed earlier this week and moved above the 30-year yield, a market distortion that has often occurred before economic recessions. The benchmark 10-year Treasury yield fell to 2.3%, moving away from near three-year highs.
- A day before the March jobs report, the government is expected to announce at 8:30 a.m. ET its weekly data on initial jobless claims. Economists were looking for a slight increase in first jobless claims to 195,000 for the week ended March 26. The previous week’s reading of 187,000 was a 52½-year low.
- The Federal Reserve’s favorite gauge of inflation, the core personal consumption expenditure price index, is expected to have risen 5.5% on an annual basis in February, up slightly from the biggest increase the previous month since April 1983. Markets expect the central bank to become more aggressive with interest rate hikes after raising borrowing costs earlier this month for the first time in addition of three years.
4. Ukraine’s president asks for more help to fend off Russia
Ukrainian President Volodymyr Zelenskiy addresses the people of Ukraine, as Russia’s attack on Ukraine continues, in Kyiv, Ukraine March 28, 2022.
Ukrainian Presidential Press Service | Reuters
Ukrainian President Volodymyr Zelenskyy said his country’s rigid defense against invading Russia was at a “turning point”, and he again appealed to the United States for more help. Ceasefire talks, which took place face-to-face this week and raised hopes, are due to resume via video on Friday. Russia has played down signs of progress and appears to have reneged on its promise to cut some operations.
Russian President Vladimir Putin attends a meeting with Head of the Republic of Ingushetia Makhmud-Ali Kalimatov at the Kremlin in Moscow, Russia, March 30, 2022.
Mikhail Klimentiev | sputnik | Reuters
Recently declassified US intelligence says Russian President Vladimir Putin believes he was misled by military leaders who did not give him key details about the botched invasion of Ukraine because they feared angering him. , senior Biden administration officials said Wednesday. The communications breakdown has “resulted in ongoing tensions between Putin and his military leadership,” White House communications director Kate Bedingfield told reporters.
5. Covid asylum limits may end; Biden urges passage of funds for vaccines
The Biden administration is expected to end by May 23 asylum limits at the US-Mexico border that were put in place to prevent the spread of Covid, according to the Associated Press, citing people familiar with the matter. The decision, which is not yet final, would end the use of public health powers to exempt the United States from its obligations under US law and international treaties to provide sanctuary for people fleeing persecution. .
US President Joe Biden receives a second coronavirus disease (COVID-19) booster shot after delivering remarks on COVID-19 in the South Court Auditorium of the Eisenhower Executive Office Building at the White House in Washington, United States, on March 30, 2022.
Kevin Lamarque | Reuters
Biden has warned that the United States will not have enough Covid vaccine doses this fall to guarantee free and easy access for all Americans if Congress fails to pass the requested $22.5 billion in additional funding. by the administration. Biden also said Wednesday that the United States has enough supplies to ensure those eligible for fourth injections have access to them after the Centers for Disease Control and Prevention this week recommended another round of booster shots.
— CNBC Journalists Melissa Repko, Elliot Smith, Sam Meredith, Christina Wilkie and Spencer Kimball as well as the Associated Press and Reuters contributed to this report.
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