Monday, May 2, here are five things you must know:
Stock Futures fall higher before of the Fed Meeting, according to employment statistics.
Equity futures in the United States increased on Monday, following-on from the largest single-session drop in more than two years Friday, as investors thought to add some weaker technology names heading into an active week on Wall Street highlighted by the Federal Reserve''s interest rate announcement on Wednesday.
The US is off to its worst four-month start to any year since 1939, with the S&P 500 down 13.3%. The Nasdaq, meanwhile, has suffered its largest monthly loss since the global financial crisis of 2008, mostly on the back of a spike in bond yields linked to the Fed''s hawkish policy turn.
Despite rising inflation pressures, central banks strengthen their policies, supply chains remain infected by Covid disruptions, and China is unable to tackle its recent pandemic recovery.
According to a private survey, manufacturing activity in China fell to a two-year low last month, while an important output index in Europe was set at the lowest levels in 15 months as raw materials prices and labor costs remained constant.
These assessments, as well as the rising US dollar, put a strain on oil markets overnight, with WTI futures for June delivery $2.75 decreased at $101.94 per barrel, and Brent contracts for July $2.52 to $104.62 per barrel.
In Europe, the Stoxx 600 was compared 1.3 percent down in early Frankfurt trading, with many regional markets closing for the traditional May Day workers holiday. Despite a rise in China equities failed to provide a wider session gain for the region''s MSCI ex-Japan index, which was 6.7 percent lower heading into the close of trading, however, the Stoxx 600 was not marked a second in the segment.
The initial projection of GDP growth last week, which showed a 1.4 percent decrease in the first three months of the year, added to concerns that the Fed''s tightening measures will disrupt global growth, but hasn''t changed bets on either this week''s decision nor the possibility of even higher rates heading into the summer months.
FedWatch, led by CME Group, is pricing in a 99.8% probability of a 50 basis point increase on Wednesday, as well as a 95.6% chance of a 75 basis point move at the Fed''s following its meeting in June.
Futures linked to the Dow Jones Industrial Average indicated a 140 point opening bell gain on Wall Street, while those linked the S&P 500 were priced for a 15 point advance. The Futures linked to the Nasdaq is looking at a 55 point opening bell increase.
2.The Fed Meeting, Earnings, and Jobs Data Are In Focus One Week Ahead
In the midst of a supposedly crucial spring turn for US equities, the Fed''s Wednesday rate announcement will highlight a positive week for data and earnings.
While rate rises for this month as well as in June are expected to be substantially set in terms of market predictions, investors will be looking for Jerome Powell and his colleagues'' thoughts on how far and how fast the Fed is going on rate hikes, as it affects US economic prospects and is causing a stalemate.
The same prediction was made last week after the first quarterly GDP contraction since the epidemic, as well as a mild earnings season that suggests collective S&P 500 profits will only increase 4.4 percent from last year, once the energy sector is stripped-out, and 0.6 percent over the second quarter.
Moderna seeks an emergency grant for the Covid vaccine under the age of 6.
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Clorox (CLX) - Get Clorox Company Report, Pfizer (SBUX) - Get Starbucks Corporation Report, Starbucks (CVS) - Get CVS Health Corporation Report, with markets also focused on jobs statistics with the JOLTS survey on Tuesday, ADP''s National Employment report on Wednesday, and the April non-farm payroll report on Friday.
3. -- Warren Buffett Makes a Spending Spree in the First Quarter and Wins Key Votes
Warren Buffet and Berkshire Hathaway held their first in-person meeting since the epidemic over the weekend, with the billionaire investor asking his recent participation in Occidental Petroleum (OXY) - Get Occidental Petroleum Corporation Reportand Alleghany Corp (Y) - Get Alleghany Corporation Report.
Buffett, who has led the company since 1965, said his $51 billion April spending spree was mostly driven by value, adding that "markets do crazy things, and occasionally Berkshire gets a chance to do something," according to the Berkshire capital.
Following a move by some investors, including the powerful California Public Employees Retirement System, to split the roles, the 91-year-old was re-elected as group chairman and CEO.
Investors opposed a proposal that would have required Berkshire''s board to provide more information about its views on climate change and how they can influence the company''s stock buying.
Activision''s stock market is leap as Buffett reviews a 9.5 percent stake.
Reportshares increased in pre-market trading after Warren Buffett''s Berkshire Hathaway informed investors it has acquired a 9.5% share in the video-game maker ahead of its $69 billion acquisition by Microsoft (MSFT) - Get Microsoft Corporation Report.
Buffett''s increased interest, which is now worth around $5.6 billion, suggests that the transaction will receive regulatory and antitrust approval, although he told attendees at the Berkshire AGM on Saturday that he "doesn''t know what the Justice Department will do."
Microsoft''s $95 per share contract will not be completed, with concerns over the acquisition rising following previous week''s less monthly active users, which increased by 4.9 percent to 372 million, bringing in-game billings down 24.6 percent to $1.01 billion owing to lower-than-expected demand for its Call of Duty: Vanguard release.
Activision shares were marked 3.15% higher in pre-market trading, indicating a $77.98 dollar worth of opening bells.
Moderna Shares Low-Cost Vaccine Approval Expectations in Under 6
Get Moderna, Inc. Reportshares improved in pre-market trading after the drugmaker announced that data to support its coronavirus vaccination for children under the age of 6 will be approved by the Food & Drug Administration next month.
Following positive feedback from regulators on Europe, Canada, and Australia, Moderna, which received Emergency Use Authorization from the FDA last week.
"I think the FDA now has all of the necessary essential data they need to to begin an application review," said Moderna''s chief medical officer, Paul Burton during an interview with ''Face the Nation.''
"So yes, we''re very confident," Burton said of the safety profile we''ve seen in this vaccination in these very youngest kids.
In pre-market trading, Moderna''s stock was marked 0.66% higher, indicating a $135.30 opening bell price.