After purging in the last few weeks, Wall Street finally seems to be showing better pre-market trends this Friday. The S & P 500 is expected to rise 1.5%, the Dow Jones will rise 1.1%, while the Nasdaq will rise 2%. The barrel of WTI crude rose another 2.3% to about $ 108.6. One ounce of gold was down 0.7% to $ 1,811. The dollar index fell 0.1% against a basket of benchmark currencies. Bitcoin jumped to $ 30,000, up 8% in 24 hours, but down another 15% in a week.
Therefore, operators can boldly engage in “bargain hunts” and uphold Nasdaq’s most abusive value. But the story hasn’t really evolved. The Fed needs to aggressively tighten monetary policy to effectively combat already very high inflation, but there is already a risk of further emphasizing a concrete economic slowdown.
On Friday the 13th, the cross-Atlantic economy, the US import price index for April 2022 was stable compared to the previous month, with FactSet’s consensus of + 0.5%. The export price index rose 0.6% compared to March, close to consensus expectations. Over the course of a year, import prices will rise by 12% and export prices will rise by 18%.
Preliminary indicators of US consumer sentiment in May 2022, measured by the University of Michigan, will be revealed at 4 pm (Consensus 64). During the day, the Fed’s Neel Kashkari and Loretta Mester will speak.
The market sees something like encouragement from Federal Reserve Chairman Jerome Powell, who has repeatedly supported a 50 basis point rate hike. This is above 75 basis points. The 2% goal causes some pain. However, he emphasized that controlling inflation is a priority.
Comments were repeated by other Fed officials on Thursday. San Francisco Federated boss Mary Daly (who doesn’t vote for the FOMC) supported a 50 basis point rate hike and said fiscal conditions needed to be tightened further to readjust supply and demand. James Bullard, a voter at the Federal Reserve Bank of St. Louis, told Yahoo Finance that raising rates by 50 basis points at least at two upcoming meetings is a good benchmark. He said he was sensitive to financial market turmoil, but downplayed the risk of a recession given the strength of the labor market. He estimated that inflation was more “sustainable” than expected.
Concerns continue about the effects of a slowing economy, prolonged inflation, and the effects of severe fiscal conditions with continued headwinds. The ongoing conflict in Ukraine and the blockade of Covid in China have also heightened the sentiment that supply chain disruptions will take time to ease.
The latest report on the Ukrainian conflict highlights the limited Russian progress in the eastern part of the country. Moscow has announced its intention to strengthen its defenses along the Finnish border by advancing plans to join NATO. Some EU countries are pushing to postpone Russia’s oil ban so that other sanctions can be sought instead. Operators are also afraid of retaliation from Russia. Meanwhile, in Shanghai, the daily surge in Covid infections is also drawing attention, raising questions about the timing of deregulation. The People’s Bank of China will meet on Monday, but there is disagreement over whether China’s central bank will ease its policies.
Twitter fell 12% to $ 39.4 before being traded on Wall Street, but the wealthiest man on the planet promised to buy a social media network for $ 54.2 per title, for a total of $ 44 billion. , Elon Musk has stopped the offer! “Twitter contracts will be temporarily suspended until details support the calculation that spam / fake accounts actually make up less than 5% of users,” tweeted Tesla and SpaceX boss businessman. Did. There are links to Reuters articles related to these. “Wrong” estimate, article dated May 2. This article from a news agency referred to Twitter’s estimate that fake accounts and spam account for less than 5% of total monetizable daily active users in the first quarter. During the period, 229 million users served ads on social networks.
Musk, which proposed the acquisition of the platform for $ 44 billion in April, estimated that one of its priorities was to remove “spambots” from the network. Musk revealed on April 4 that it had acquired more than 9% of Twitter’s stake. This is a week behind what the regulations allow and usually uses filings reserved for passive investors. He then corrected his statement and has since embarked on a more specific purchase offer.
At the end of April, Billionaire said it had secured funding for a bid on Twitter. Since then, Musk has still been negotiating with potential investors. Larry Ellison, the founder of Oracle, was to participate in the transaction as well as the cryptocurrency company Binance. Saudi Arabia was to hold a stake. Musk also sold billions of dollars worth of Tesla securities to secure his share of funding.
Recall that Elon Musk will have to pay Twitter $ 1 billion if Elon Musk does not ultimately follow the agreement previously signed between the parties. However, note in another tweet now that Musk “is still working on an acquisition.” According to the pre-session trend, the stock price is almost 30% lower than the offer price, so the market hasn’t believed it for a while.
Motorola Solutions is an American company born 10 years ago that spun off from Motorola and is active in video and communications equipment, software, systems and services, with adjusted first-quarter earnings of $ 1.70 last night. was. The consensus was $ 1.58, which was $ 1.87 a year ago. The group’s revenue for the quarter ended March was $ 1.89 billion, compared to $ 1.77 billion in the year-ago quarter. Therefore, the group exceeded the revenue consensus by 3% during the closure period.
Robin Hood. Online intermediary applications will rise 20% before they hit the market on Wall Street. This surge is related to Sam Bankman-Fried, Managing Director of the crypto asset trading platform FTX. He revealed that he had acquired a 7.6% stake in Robin Hood’s capital after the market closed yesterday. Emergent Fidelity Technologies, whose boss and major shareholder is Sam Bankman Fried, will acquire this 7.6% stake for $ 648 million, according to a document filed with the SEC, a police officer on the US Stock Exchange. Did. .. Founded in May 2019 and based in Nassau, The Bahamas, FTX currently has no commercial presence in the United States, but is one of the world’s largest cryptocurrency trading platforms comparable to Coinbase and Binance.
Its boss and co-founder Sam Bankman Fried will benefit from the recent collapse of the Robin Hood title, which has evolved at historic lows. In a stock market document, Emergent Fidelity Technologies has indicated that it has acquired these securities in the belief that it “represents an attractive investment” and intends to manage this participation as a financial investment, “at this stage. Then act to change or influence Robin Hood’s dominance. ” However, the acquirer reserves the right to “consult with management from time to time” and considers the possibility of purchasing other securities in the future and “options to increase the value of shareholders”. I added that I can also do it. , Online broker alternative strategy or operational or governance initiative. “
Among other Wall Street rating giants, Apple rose 2% before the session after being defeated by Saudi Aramco yesterday to its first global market capitalization rank. Tesla has recovered 7%, reducing Mask’s interest in Twitter. Amazon will increase by 2% and Microsoft will increase. Alphabet has made comparable profits.