Here are the most important news, trends and analysis that investors need to start their trading day:
1. Wall Street set to open lower after Friday’s sharp declines
Traders work on the floor of the New York Stock Exchange on March 30, 2022 in New York City.
Michael M. Santiago | Getty Images
U.S. stock futures pointed to sharp declines on Wall Street to start the new week after Friday’s plunge. Concern deepened about just how aggressive the Federal Reserve will be with interest rates hikes to fight inflation, sending the Dow Jones Industrial Average down 981 points, or 2.8%, for its fourth straight negative week. The S&P 500 and the Nasdaq suffered similar losses, sinking roughly 2.8% and 2.6%, respectively, for their third straight negative weeks. The Nasdaq closed Friday in bear market territory. The 10-year Treasury yield on Monday backed away from last week’s late 2018 highs over 2.9%.
2. Oil, Chinese stocks crushed as lockdown in Shanghai persists
Resident in a so-called containment building looking out of their balconies on April 24, 2022 in Shanghai, China as the city battles its worst Covid outbreak since the start of the pandemic.
CFOTO | Future Publishing | Getty Images
Oil prices sank 4.5% on Monday, extending last week’s decline, as concern mounted over how prolonged Covid lockdowns in Shanghai and further increases to U.S. rates might hurt global growth and crude demand. China’s struggle to contain its worst Covid outbreak of the pandemic in its biggest city and as well rising cases in Beijing slammed Chinese stocks. The Shenzhen component tumbled 6%, while the Shanghai composite declined 5.1%. Hong Kong’s Hang Seng index fell 3.7%. Japan’s Nikkei dropped nearly 2%.
3. Coca-Cola’s profit beat leads busiest week of earnings
Bottles of Coca Cola products are displayed in a cooler at Colonial Liquors on February 10, 2022 in Corte Madera, California.
Justin Sullivan | Getty Images
Coca-Cola on Monday reported quarterly earnings and revenue that topped expectations as consumers drank more of its trademark soda, Powerade and other beverages. Despite the suspension of its Russian business, the company reiterated its full-year revenue and earnings outlooks. This week is the busiest of the earnings season, with about 160 companies in the S&P 500 expected to report, including megatech names Amazon, Apple, Google parent Alphabet, Meta Platforms and Microsoft.
4. Twitter jumps 5% on reports it’s ready to accept Elon Musk’s offer
Elon Musk twitter account is seen through Twitter logo in this illustration taken, April 25, 2022.
Dado Ruvic | Reuters
Twitter shares jumped 5% in the premarket on reports the company could reach a deal with Elon Musk as early as today. Earlier this month, Musk offered to buy the social media company, which became more receptive after the Tesla and SpaceX CEO revealed $46.5 billion in secured financing. Twitter’s board had met Sunday to discuss Musk’s financing plan for his proposed bid, a source close to the situation told CNBC.
5. U.S. pledges more military aid for Ukraine as officials visit
Ukraine’s President Volodymyr Zelenskiy attends a meeting with U.S. Secretary of State Antony Blinken and U.S. Defense Secretary Lloyd Austin, as Russia’s attack on Ukraine continues, in Kyiv, Ukraine April 24, 2022. Picture taken April 24, 2022.
Ukrainian Presidential Press Service | Reuters
U.S. Secretary of State Antony Blinken and Defense Secretary Lloyd Austin visited Ukraine on Sunday to discuss military aid with Ukraine’s president, Volodymyr Zelenskyy. At the meeting in Kyiv, which was shrouded in secrecy and the highest-level visit to Ukraine by U.S. officials since the invasion began, America pledged just over $700 million in military financing to help Ukraine and other allied countries in Central and Eastern Europe involved in the war effort. Russia’s invasion of Ukraine entered its third month on Sunday.
— CNBC’s Sarah Min, Abigail Ng, Amelia Lucas, Jessica Bursztynsky, Natasha Turak, Holly Ellyatt as well as Reuters contributed to this report.
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