September 27, 2022

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5 things to know before the stock market opens Tuesday, April 5

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

1. Wall Street looks lower after two-session winning streak

Traders on the floor of the NYSE, April 4, 2022.

Source: NYSE

Treasury yields rose Tuesday morning and key yield spreads — the 2-year/10-year and the 5-year/30-year — remained inverted. It’s a bond market phenomenon that has often preceded economic recessions. Traders were selling bonds at the shorter end of the yield curve on concerns the Federal Reserve will get more aggressive in its interest rate-tightening cycle. Bond prices move in the opposite direction of yields.

U.S. oil prices extended gains Tuesday on supply concerns as the U.S. and its European allies considered new sanctions against Moscow over allegations of war crimes by Russian troops in Ukraine. West Texas Intermediate crude added 1%, rising to more than $104 per barrel after Monday’s 4% increase broke a two-session decline.

2. Elon Musk to join Twitter’s board, tweets edit-button poll

Founder and CEO of Tesla Motors Elon Musk speaks during a media tour of the Tesla Gigafactory, which will produce batteries for the electric carmaker, in Sparks, Nevada.

James Glover II | Reuters

3. Amazon signs rocket deal with three firms to launch internet satellites

Artist renderings of the companies’ rockets, from left to right: New Glenn, Vulcan Centaur, and Ariane 6.

Blue Origin / United Launch Alliance / Arianespace

4. EU to propose ban on Russian coal imports, sources say

French President Emmanuel Macron has called for the EU to ban Russian coal as part of a wave of new sanctions to further isolate the Kremlin.

Frank Rumpenhorst | Picture Alliance | Getty Images

5. Shanghai extends lockdown; BA.2 subvariant 72% of U.S. cases

In the latest Covid developments:

  • The coronavirus outbreak in China’s largest city remains “extremely grim,” according to the director of Shanghai’s working group on epidemic control. Most of eastern Shanghai, which was supposed to reopen last Friday, remained locked down along with the western half of the city.
  • The more contagious omicron BA.2 subvariant now makes up 72% of Covid infections that have undergone genetic sequencing in the U.S., according to data from the Centers for Disease Control and Prevention. BA.2 became dominant in the U.S. last week.
  • Senate Republicans and Democrats reached a deal Monday on $10 billion in additional Covid funding to buy therapeutics and vaccines and maintain the nation’s testing capacity if another Covid wave hits the U.S. The amount is less than half the $22.5 billion that President Joe Biden first requested.

— CNBC reporters Yun Li, Samantha Subin, Pippa Stevens, Sam Shead, Michael Sheetz, Vicky McKeever and Spencer Kimball as well as The Associated Press and Reuters contributed to this report.

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https://www.cnbc.com/2022/04/05/5-things-to-know-before-the-stock-market-opens-tuesday-april-5.html