US stocks mixed on Monday as investors are preparing to fill a busy week with important economic data that can position the Federal Reserve to act more aggressively on plans to raise interest rates. it was done.
The S & P 500 fell about 0.2% and the Dow Jones Industrial Average fell 130 points. The Nasdaq Composite Index rose 0.3%. The move took place after all three major benchmarks closed for the first time in a month with a two-week consecutive rise on Friday. .. Meanwhile, bond yields continued to rise, with 10-year Treasuries approaching 2.5% on Monday morning.
Investors deserve higher interest rates this year after recent statements from Fed Chair Jerome Powell have shown that authorities are committed to rising borrowing costs aimed at curbing inflation spikes. Is starting to be attached. This week’s Washington could further stimulate expectations that central bank policymakers could be cut in half.
The highlight of this week’s economic report is the most important March employment report. The tight labor market strongly suggests the federal government’s decision to curb monetary policy, and the momentum of economic recovery has suggested to authorities that the U.S. economy may survive a more accommodative fiscal situation. I am. In addition, while improving the labor market is good for US households, widespread recruitment leaves room for significant impact on workers, driving wage increases and further increasing inflationary pressures. Bloomberg economists estimate 490,000.
“In recovery from a pandemic, payroll reports could be the largest ever,” Christopher Lupky, chief economist at FWDBONDS, said in a recent memo. And the toughest labor market since the 1960s has been like pouring gasoline on fire, and his or her salt-worthy policymakers are now burning with the desire to get interest rates up to the neutral level of 2%. I am. “
Another focus of traders at the forefront of this week’s economic data is a new reading of the monthly Consumer Expenditure (PCE) deflator scheduled for Thursday. Gauges are another indicator of how rapidly prices are rising across the country. Consensus economists expect PCE to record an additional 0.6% increase in February, according to Bloomberg data. The core PCE index used by the Fed to implement monetary policy is also expected to rise when printed matter is published on Wednesday. Consensus economists are looking for a 5.5% increase in core PCE in February compared to a 5.2% increase in January.
Russia’s continued invasion of Ukraine also continues to attract the attention of investors. US officials have receded the controversial remarks made by President Joe Biden over the weekend, which appears to be seeking the removal of Russian President Vladimir Putin during his speech in Poland.
Secretary of State Antony Blinken told reporters during his visit to Israel on Sunday that the United States was not trying to remove Putin from power.
“As you know, and as we’ve heard repeatedly, we don’t have a regime change strategy in Russia or anywhere else,” Blinken said. The country in question. It depends on the Russian people. “
10:30 am ET: Tesla shares soar after company announces plans for another stock split
Tesla () plans a second stock split in the form of dividends in about two years Electric car makers will approve additional shares to shareholders this year to enable the split In a tweet the company announced that it would ask to vote at the general meeting.
The news raised the stock price by more than 5% and traded at about $ 1,064.28 per share at 10:26 am ET.
“On March 28, 2022, Tesla, Inc. will increase the number of common stock approved at the upcoming 2022 Annual General Meeting of Shareholders through our amendments and amendments to the revised Certificate of Establishment. Announced plans to require shareholder approval. To enable a share split of the Company’s common stock in the form of share dividends. Tesla’s board of directors approved the management proposal, but share dividends are the final director. Subject to the approval of the association, said the Securities and Exchange Commission (SEC).
Tesla is planning a stock split to join other big tech giants such as Amazon, Alphabet and Apple.
9:30 am ET: Economic data for a busy week in progress and stock prices fall
Here are the places where the market was trading during the opening on Monday:
S & P 500 (^ GSPC).: -4.40 (-0.10%) to 4,538.66
Dow(^ DJI).: -41.98 (-0.12%) to 34,819.26
Nasdaq (^ IXIC).: + 12.18 (+ 0.09%) to 14,181.48
crude oil(CL = F).:-$ 7.38 (-6.48%) to $ 106.52 barrels
gold (GC = F).:-From $ 21.10 (-1.08%) to $ 1,933.10 / ounce
10 years finance (^ TNX).: 2.4620% at -3 bps
9:12 AM ET: HP is buying Poly with a $ 3.3 billion cash transaction
HP Inc. (HP) has begun to acquire audio and video device maker Poly for a $ 3.3 billion deal as it seeks to take advantage of the rise of hybrid work.
The information technology company provided $ 40 per share of Poly, formerly known as Plantronics, or about $ 1.7 billion in cash. This amount corresponds to a premium of approximately 53% of the last closing price of the stock.
“The rise of hybrid offices creates a once-in-a-generation opportunity to redefine the way we work,” said Enrique Lores, HP CEO.
HP shares fell 2.2% in pre-market trading to about $ 38.95 per share at 9:10 am ET. Meanwhile, Poly (POLY)’s share price surged 48% to $ 38.87 per share.
7:55 AM ET: Equity futures flat after index rises for two consecutive weeks
Apple Inc. (AAPL) reported this year that iPhone makers will cut iPhone SE production by about 20% in the next quarter as demand for consumer electronics declines after making profits nine times in a row. Ready to end the longest streak.
Apple stocks fell 2% in pre-market trading on Monday. Apple traded at about $ 172.48 per share at 7:53 am ET.
Technology giants also cut orders for AirPod earphones by more than 10 million units in 2022. AirPods have become the most widely sold wireless earphones, helping Apple gain more than 25% of its global market share. Counterpoint.
Meanwhile, Oscar’s victory in the Apple TV movie “CODA” on Sunday could also be the company’s victory in the streaming race.
“If Apple wins the long-awaited Best Work Award at CODA, it will catalyze more A + talents to come to Apple first (or with top brackets) and work on Cupertino’s content over the next few years. It can be a significant boost and a significant increase in paying subscribers, “Dan Ives, a technical analyst at Wedbush, said prior to the award show.
7:36 am ET: Equity futures flat after index rises for two consecutive weeks
The main market movements in pre-market trading on Monday are:
S & P 500 Futures (ES = F).: +1.25 points (+ 0.03%) to 4,537.75
Dow Futures (YM = F).: From + 22.00 points (+ 0.06%) to 34,781.00
NASDAQ futures (NQ = F): -12.25 points (-0.08%) to 14,743.50
crude oil(CL = F).:-$ 5.29 (-4.64%) to $ 108.61 barrels
gold (GC = F).: $ -24.70 (-1.26%) to $ 1,929.50 per ounce
10 years finance (^ TNX).: 2.492% at 0.00 bps
Alexandra Semenova is a Yahoo Finance reporter. Follow her on her Twitter. @alexandraandnyc
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