Here are the most important news, trends and analysis investors need to start their trading day:
1. Stock futures rise after S&P 500 closes on the verge of a bear market
Traders work on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York City, the US, May 19, 2022.
Andrew Kelly | Reuters
US stock futures rebounded on Friday, a day after Wall Street selling continued, causing the S&P 500 to close on the brink of joining the Nasdaq in a bear market. Those two stock benchmarks were headed for their seventh straight weekly loss. The Dow Jones Industrial Average, which also closed lower on Thursday, was headed for its eighth consecutive week lower. The Dow was locked in a sharp correction, defined by a drop of 10% or more from a previous high. A bear market is manifested by a drop of 20% or more from a previous high.
Bond prices, which move inversely to yields, fell on Friday as stocks rallied before trading. The 10-year Treasury yield was trading around 2.9%. That’s just below the key 3% level that has been breached on and off for weeks as traders raise yields on the belief that the Federal Reserve will have to raise interest rates more aggressively to control the inflation.
2. China cuts a key rate to try to boost its Covid-hindered economy
High-rise buildings in downtown Shanghai, China, on March 12, 2018. China cut its benchmark mortgage rate by an unexpectedly wide margin on Friday, its second cut this year, as Beijing seeks to revive the ailing housing sector. housing to prop up the economy.
John Eisele | Afp | fake images
China is going the other way on borrowing costs, cutting its benchmark mortgage rate by an unexpectedly wide margin on Friday. That is the second cut this year in this key rate, as Beijing seeks to revive the country’s ailing housing sector to prop up the world’s second-largest economy. Senior Chinese officials have promised more measures to combat slowing economic growth due to lockdowns and other restrictive measures under that country’s zero-Covid policy. Many private sector economists expect China’s economy to contract this quarter from a year earlier, compared with 4.8% growth in the first quarter.
3. Ross Stores becomes the last retailer crushed by inflation
Pedestrians walk past a Ross Stores location in San Francisco.
Noah Berger | Mayor Bloomberg | fake images
Back in the US, Ross Stores became the latest retail stock to come under fire after pointing to inflation as a problem. Shares of the discount retailer sank 26% premarket, following quarterly losses in profit and revenue. In its first-quarter earnings release after the closing bell on Thursday, Ross Stores also issued bearish guidance. The company said Russia’s war in Ukraine has “exacerbated inflationary pressures,” adding that it faced tough year-on-year comparisons in the first half of 2022 due to the expiration of the government’s Covid stimulus and pent-up demand normalizing.
4. CDC Recommends a Pfizer Covid Vaccine Booster for Children 5 to 11 Years Old
A health worker administers a Pfizer-BioNTech Covid-19 vaccine to a child at a vaccination site in San Francisco, California, U.S., on Monday, January 10, 2022.
David Pablo Morris | Mayor Bloomberg | fake images
The Centers for Disease Control and Prevention recommends a Pfizer Covid booster vaccine for children ages 5 to 11 years at least five months after their primary vaccination series. Thursday’s CDC move comes as Covid infections are rising across the country and immunity from the first two doses is waning. The agency is rolling out boosters for children ages 5 to 11, though most kids in that age group have yet to get their first two doses. Only 29% of that cohort is fully vaccinated. CDC Director Dr. Rochelle Walensky, in a statement Thursday, tried to reassure parents that vaccines are safe and encouraged them to vaccinate their children.
5. Musk denies ‘savage accusations’ in apparent reference to harassment report
SpaceX CEO Elon Musk participates in a post-launch press conference inside the Press Site auditorium at NASA’s Kennedy Space Center in Florida on May 30, 2020, following the launch of SpaceX’s Demo-2 mission. the agency to the International Space Station.
SpaceX founder and CEO Elon Musk said in a tweet Thursday night that the “savage accusations” against him are not true. He did not explain what those allegations were. But his response came after a Business Insider report on Thursday said the aerospace company had paid $250,000 in damages to a flight attendant who accused the billionaire of sexual misconduct. The report, citing interviews and documents obtained by Insider, said the woman claimed that during a massage she was giving Musk, she exposed his erect penis, touched his thigh without his consent and offered to buy him a horse if he performed sexual acts. . CNBC was unable to independently verify those allegations.
-CNBC fred imbert, sarah min, Vicky McKeever, spencer kimball Y dan mangan as well as Reuters contributed to this report.
— Register now for the CNBC Investing Club to follow all of Jim Cramer’s stock moves. Follow the broader market action like a pro on professional cnbc.