Tuesday, May 3, here are five things you should know.
1. -- Stock Futures Rise As the Rate Rises, and Volatility Increases
Equity futures in the United States climbed higher Tuesday, while the dollar fought back its global peers and Treasury rates plunged into multi-year highs, causing investors to erupt another dangerous session ahead of the Federal Reserve''s policy decision later on Wednesday.
For the first time since December 2018, Benchmark 10-year note yields climbed down for the first time since December 2018 rambling 10-year German bunds up to 1% for the first time since 2015 as asset prices fell in response to hawkish central bank signaling and the highest inflation readings since the 1980s.
FedWatch, a subsidiary of CME Group, is pricing in a 99.8% chance of a 50 basis point hike on Wednesday, as well as a 95.6% chance of a 75 basis point move at the Fed''s following its meeting in June.
In a surprise move that slammed regional markets, the Reserve Bank of Australia went from signal to action with its first rate rise in over a decade overnight.
Solid earnings and a stronger currency, which helps make exports more attractive, helped the Stoxx 600 gain an early 0.67% gain, while the dollar index slowed to a 20-year high of 103.52 against a handful of its global peers.
China''s inability to curb its increase in Covid infections in 2022 continues to push oil prices lower, even amid the possibility of a Russian export ban from European legislators.
WTI crude futures for June delivery were marked 98 cents down in overnight trading to change hands at $104.19 per barrel, while Brent contracts for July fell $1.19 to trade at $106.39 per barrel, according to the report.
Futures linked to the Dow Jones Industrial Average indicate a modest 25-point opening bell gain, while those linked to the S&P 500 were priced for a 5-point drop. Futures linked to the Nasdaq, the tech-focused Nasdaq, are looking to a 10-point move to the downside.
Tesla Inc. Shares High on Musk''s Report Trying to Achieve Alternatives to Twitter Financing
Get Tesla Inc Reportand Twitter (TWTR) - Follow Elon Musk''s pre-market campaign to expand his funding for his $44 billion acquisition of the social media company, putting less pressure on existing Tesla investors.
Musk, who has already sold $8.5 billion in Tesla shares over the past month, is attempting to achieve the $21 billion he needs to provide for the agreement, which is expected to close sometime in the autumn. Tesla shares have dropped by 21.2% since Musk first made his interest in Twitter public on April 4, as investors examine the value of Musk''s $62.5 billion in pledged stock.
Tesla, for its part, informed in a Securities and Exchange Commission filing that it needs more time to count the value of shares Musk has pledged against various personal and business loans ahead of its AGM in Austin on August 4.
Tesla shares were marked 0.22% higher in pre-market trading to indicate an opening bell price of $902.95 each, while Twitter increased by 0.5 percent to $49.40 each, while Musk''s bid price was $54.20.
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After a third-quarter earnings loss, Logitech''s stock plummets, lowering the sales forecast.
Logitech International (LOGI) - Get Logitech International S.A. Reportshares slumped in pre-market trading after the manufacturer of PC equipment reported weaker-than-expected quarter earnings and lowered its full-year sales forecast.
Logitech, which manufactures webcams, mice, and computer keyboards, said that sales for its next fiscal year, which starts in March of 2023, would range from $875 million to $925 million, owing in part to a drop in PC demand and the implications of Russia''s war on Ukraine on its eastern European business.
The decreases resulted in a fourth quarter earnings report that showed sales falling by 20% from last year to $1.23 billion, resulting in a operating income of 56% decreasing to $129 million.
In pre-market trading, Logitech shares were marked 3.6 percent down, indicating a $63.95 opening bell price.
4. -- BP Shares decline after a profit surge puts Russia''s exit writedown on the line.
BP plc''s (BP) - Get BP plc ReportU.S.-listed shares jumped higher in pre-market trading after the oil major posted its strongest underly quarterly earnings since 2008, toutdging its buyback intentions, despite a $24 billion writedown linked to its departure from Russia earlier this year.
BP''s biggest first quarter loss of $20.4 billion was in its history, but rising energy prices continue to aid the group into a more robust-than-expected underlying bottom line of $6.2 billion, a 135% increase from the same period last year.
BP said it will increase its Q2 share buyback to $2.5 billion, a $1 billion increase from its previous estimate.
In pre-market trading, BP''s U.S. listed shares were marked 4.2 percent higher, indicating an opening bell price of $30.07 each. The stock was marked 3.2 percent higher in late-day trading in London.
5. -- A leaked opinion suggests SCOTUS reading to overturn Roe v Wade.
A leaked judicial opinion, published late Monday, suggests that the Supreme Court is ready to overturn Roe v Wade, a major case in the United States, that has been codified abortion rights for over 50 years.
Politico publishes the leak based on an opinion written byJustice Samuel Alito and allegedly supported by other conservative court members, including the former President Donald Trump''s recent appointee, Amy Coney Barrett, who declares Roe to be "egregiously wrong from the start."
"Abortion poses a major moral issue," according to the view. "The Constitution does not prohibit the citizens of each state from regulating or prohibiting abortion."
If the opinion proves valid, it might suggest that the Court is likely to overturn Roe in the coming months following oral arguments in December on a lawsuit filed against the state of Mississippi''s attempt to prohibit abortions after 15 weeks of pregnancy.
During the mid-term elections in November, the decision might further establish relationships between Republican and Democratic legislators.