Here are the most important news, trends and analyzes that investors need to start their trading day:
1. Futures rose before jobs report after worst quarter in 2 years
Traders on the floor of the NYSE, March 31, 2022.
US stock futures started the second quarter higher ahead of the government’s March employment report on Friday. Wall Street ended its worst quarter since the first three months of 2020 on Thursday, including the Covid epidemic low in late March of that year. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq all fell nearly 1.5% on Thursday. For Q1, the Dow and S&P 500 fell 4.57% and 4.95%, respectively. Nasdaq lost 9.1%. The start of the rate-hiking cycle from the Fed, high inflation and Russia’s invasion of Ukraine have all contributed to the struggle for equity so far this year.
2. Recession signal: The original Treasury spread has reversed for the first time since 2019
Treasury spreads could be affected by Friday’s jobs report, a day after the 2-year yield briefly surpassed the 10-year yield for the first time since 2019, a reversal that often occurs before the economic downturn. Some data providers reversed the 2-year-10-year spread for a few seconds on Tuesday, but CNBC data did not confirm this at the time. A negative number on the chart means that the two yields are not reversed at this point
Another key yield spread, which reversed Monday for the first time since 2006, reversed 5-year and 30-year Fridays. Short-term yields going above the long date indicate market concerns that the Fed could raise interest rates too quickly. A yield spread over a much shorter period of time – 3-month Treasury and 2-year – has definitely been positive.
3. March recruitment is expected to be strong but lower than the previous month
Now the Denver Public School recruitment sign is placed in front of Bromwell Elementary School in Denver, Colorado on Tuesday, December 7, 2021.
Hyung Chang | Denver Post | Getty Images
A strong jobs report on Friday could give the Fed more confidence to hold on to its aggressive rate-boosting plan this year aimed at fighting inflation without slowing the economy too far. Economists expect 490,000 jobs to be added in March. It will still be strong, but it will be much lower than the 678,000 nonfarm salary created in February. The country’s unemployment rate is expected to fall to 3.7% in March from 3.8% in February.
4. Russian troops return Chernobyl nuclear site to Ukraine
Before Kharkiv on March 31, 2022, during the Russian military invasion of Ukraine, a Ukrainian soldier looks through binoculars at the front line. A
Fadel Sena | AFP | Getty Images
In the latest development of Russia’s war against Ukraine:
- The heavily fortified Chornobyl nuclear site was evacuated early Friday after Russian troops regained control of Ukraine.
- Russia’s Belgorod region governor on Friday morning accused Ukraine of flying a helicopter gunship across the border and hitting an oil depot, what would be the first such attack if confirmed.
- Ukraine also continues successful but limited counter-attacks within its borders. Western officials say there are growing indications that Russia is using Ukraine as a cover to reorganize its escalation talks. Ukrainian and Russian negotiators planned to resume talks via video on Friday.
5. Gamestop increases as video game retailers announce stock-splitting plans
December 23, 2021 Pedestrians walk past a gamestop retail store in New York.
Scott Mlin | CNBC
Gamestop shares jumped 15% in Friday’s premarket, the morning after the video game retailer announced plans to split the stock. Gamestop said it would seek approval at its next shareholder meeting to increase the number of Class A common stocks from 300 million to 1 billion shares in order to conduct a split in the form of a stock dividend.
Gamestop tore down in March, rising 35% as of Thursday’s close, as enthusiastic retail investors stood by their favorite memes. The stock rose early last month when chairman Ryan Cohen, who is transforming into a digital-first company, bought an additional 100,000 shares, bringing active investor ownership to 11.9%.
– CNBC reporters Sarah Min, Jesse Pound, Hannah Miao And Eun Lee The Associated Press also contributed to this report.
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