5 things to know before the stock market opens on Wednesday April 6
Here are the most important news, trends and analysis that investors need to start their trading day:
1. Stock futures sink in what would add to Tuesday’s decline on Fed concerns
Traders on the floor of the NYSE, March 31, 2022.
U.S. stock futures fell on Wednesday as investors await more information on what appears to be a move by the Federal Reserve to even more aggressive monetary tightening. Minutes from the Fed’s March meeting, which featured the first interest rate hike in more than three years, were released at 2 p.m. ET. The market is pricing in rate hikes of at least 0.25% in the Fed’s six remaining meetings of the year, with bigger hikes of 0.5% possible in May and June. Fed Governor Lael Brainard, who normally favors loose policy and low rates, said on Tuesday the central bank needed to act quickly and aggressively to bring down inflation. Those comments sent Wall Street plummeting and drove bond yields to near three-year highs.
2. Rising bond yields, driving up mortgage rates, leading to lower demand for home loans
In fact, 30-year fixed rate mortgages exceeded 5% on Tuesday. Rising rates caused the total volume of mortgage applications to fall by 6% last week, according to the Mortgage Bankers Association. That’s down 41% from the same week a year ago.
3. Oil CEOs Yellen to testify in separate hearings on Russian-Ukrainian war
Oil prices remained high on Wednesday due to supply problems as the United States and its European allies consider new sanctions against Moscow as allegations emerge of wartime atrocities by Russian troops in Ukraine . The head of the European Council said Russian oil and gas sanctions would be needed sooner or later. Rising crude prices, in turn, pushed gasoline prices higher. CEOs of oil companies, including Chevron and Exxon, are scheduled to testify before a House panel on Wednesday about what they are doing to control energy costs. In another House hearing, Treasury Secretary Janet Yellen is expected to speak about the global impact of Russia’s invasion of Ukraine on the global economy.
4. JetBlue overtakes Frontier with $3.6 billion cash offer for Spirit Airlines
A Spirit Airlines plane on the tarmac at Fort Lauderdale-Hollywood International Airport on February 07, 2022 in Fort Lauderdale, Florida.
Joe Raedle | Getty Images
JetBlue Airways has made an unsolicited $3.6 billion cash bid for Spirit Airlines, raising questions about Spirit’s deal to combine with rival discount carrier Frontier Airlines. Spirit said its board of directors is evaluating JetBlue’s proposal, which is 33% higher than Frontier’s stock and cash offering. Trading in Spirit shares was halted before Tuesday’s market close after the stock soared more than 22%. Shares of Spirit were weaker in Wednesday’s premarket. Frontier was also lower in the pre-market.
5. Musk has spent $2.64 billion on Twitter stocks so far this year, filing shows
Elon Musk speaks at the Automotive World News Congress at the Renaissance Center in Detroit, Michigan.
Rebecca Cook | Reuters
Tesla CEO Elon Musk has been buying Twitter stock almost daily since late January, spending $2.64 billion on his current stake in the company, according to a regulatory filing Tuesday. The disclosure came in a 13D, confirming Musk’s intentions to be more active in Twitter’s affairs. He was announced as a new board member on Tuesday. Twitter also confirmed it was testing an edit button, which was the subject of a Musk Twitter poll on Monday, hours after a filing revealed it had gained more than 9% stake. in the social network.
— CNBC Journalists Jeff Cox, Diana Olick, Leslie Joseph, Lora Kolodny and Jordan Novet as well as the Associated Press and Reuters contributed to this report.
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