Here are the top news, trends and analysis that investors need to start their trading day:
1. Wall Street Decisively Drops After Another Hot Inflation Report
Traders working on the floor of the New York Stock Exchange
New York Stock Exchange
US stock futures turned sharply lower after the inflation report before the bell on Friday showed a larger-than-expected increase. According to the data, the 10-year Treasury yield initially jumped more than 3.08%. Thursday’s surge in bond yields dragged stocks lower as the Dow Jones Industrial Average fell 638 points, or nearly 2%. The S&P 500 and Nasdaq lost about 2.4% and 2.8%, respectively.
- Big tech names fought back on Thursday, with Facebook’s Meta Platforms down 6.4%, Amazon’s down more than 4% and Apple’s down 3.6%. These stocks rebounded earlier in Friday’s trading, but then turned lower.
- However, Netflix fell 5% in pre-market trading after Goldman Sachs downgraded the stock to sell from neutral and lowered its target price to $186 per share from $265. Netflix closed down about 5% Thursday at about $193 a share.
2. Consumer inflation rose in May at the fastest rate since 1981
A supermarket in Washington, D.C. on May 26, 2022.
Nicholas Cam | Agence France-Presse | Getty Images
The May CPI rose 8.6% year over year, the fastest advance in more than 40 years. On a monthly basis, the headline CPI rose 1%, which is also higher than expected. The Federal Reserve is expected to raise interest rates by half a point next week and another half point in July. But then, the pace of the fight against high inflation from four decades ago became less clear. Bond yields rose and stock markets fell on concern that the Fed’s approach to tightening must become more aggressive to calm price pressures, threatening to plunge the economy into a recession.
3. The national average gas price is just under $5 per gallon per cent
Gas prices above $5.00 per gallon are displayed at gas stations in New Jersey, USA, on June 7, 2022.
Luqman Vural Elibol | Anadolu Agency | Getty Images
The national average price for a gallon of gas, according to AAA, has been gradually rising, now just shy of 1 cent of $5, as oil prices continue to rise. US West Texas Intermediate crude rose, on Friday, to trade at more than $122 a barrel. However, those gains were capped as traders worried that new lockdown measures in Shanghai for mass testing for Covid could outpace the consumption of solid oil and gas for the world’s largest consumer, the United States. But for now, the impulse summer peak of demand in the US has been boosting crude oil prices.
4. Two Home Equities Are Crushed On Signs Of Business Weakness
Shares of two companies, which have boomed during the Covid pandemic, were plummeting in the primary market on Friday, the morning after signs of weakness in their businesses.
DocuSign sank 25% of the market. The electronic signature software vendor’s weaker-than-expected earnings for the first quarter of the fiscal year outweighed the revenue outperformance. Stitch Fix is down nearly 20% in pre-bell trading. The online personal design platform confirmed planned layoffs for 15% of salaried jobs within its workforce as it reported disappointing quarterly results and cautioned for the current quarter.
5. The Capitol Riot Committee blames Trump on January 4th. 6 “Attempted Coup”
US President Donald Trump speaks to supporters of The Ellipse near the White House on January 6, 2021, in Washington, DC.
Brendan Smilofsky | Agence France-Presse | Getty Images
The House of Representatives selects the commission to investigate the events of January. Riot 6 on the Capitol began to roll out its preliminary findings Thursday night in the first in a series of public hearings. The commission said the attack was not spontaneous, calling it an “attempted coup” and was a direct result of then-defeated President Donald Trump’s efforts to cancel the 2020 election. Trump, in a social media message after the hearing, criticized the commission for not showing “many positive witnesses and testimonies” and for playing it. Only negative shots. More hearings are scheduled over the next few weeks.
– CNBC channel Jesse PoundAnd the Samantha SobinAnd the Patty DoomAnd the Jordan NovettAnd the Lauren Thomas And the Kevin Brueninger The Associated Press also contributed to this report.
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