Here are the top news, trends and analysis investors need to start their trading day:
1. Stock futures lower, which would add to Tuesday’s decline on Fed concerns
Traders on the NYSE floor, March 31, 2022.
Source: New York SE
US stock futures fell on Wednesday as investors await more insight into what appears to be a Federal Reserve moving to an even more aggressive monetary tightening path. Minutes from the March Fed meeting, which saw the first rate hike in more than three years, are available at 2pm ET. The market sees at least 0.25% rate hikes at all six remaining Fed meetings of the year, with larger 0.5% hikes possible in May and June. Fed Governor Lael Brainard, who normally favors loose monetary policy and low interest rates, said Tuesday the central bank must act quickly and aggressively to bring down inflation. Those comments sent Wall Street lower and bond yields back to near a three-year high.
2. Rising bond yields, which push up mortgage rates and reduce demand for home loans
In fact, 30-year fixed rate mortgages topped 5% on Tuesday. The rising interest rate environment has reduced total home loan applications by a further 6% last week, according to the Mortgage Bankers Association. That’s 41% less than the same week a year ago.
3. Oil CEOs, Yellen to testify at separate hearings on Russia-Ukraine war
Oil prices remained elevated on Wednesday on supply concerns as the US and its European allies consider further sanctions against Moscow amid allegations of wartime atrocities by Russian troops in Ukraine. The head of the European Council said that sooner or later Russia will need oil and gas sanctions. Higher crude oil prices, in turn, have pushed gasoline prices higher. Oil company CEOs, including Chevron and Exxon, are due to testify before a House panel on Wednesday about what they are doing to control energy costs. At another hearing in the House of Representatives, Treasury Secretary Janet Yellen will address the global impact of Russia’s invasion of Ukraine on the world economy.
4. JetBlue beats Frontier with $3.6 billion cash offer for Spirit Airlines
A Spirit Airlines aircraft on the tarmac at Fort Lauderdale-Hollywood International Airport on February 07, 2022 in Fort Lauderdale, Florida.
Joe Raedle | Getty Images
JetBlue Airways made an unsolicited $3.6 billion cash offer to Spirit Airlines, raising questions about Spirit’s deal to merge with rival discount carrier Frontier Airlines. Spirit said its board is reviewing JetBlue’s offer, which is 33% higher than Frontier’s stock and cash offer. Trading in Spirit shares halted before the close on Tuesday after the stock rose more than 22%. Spirit’s shares were lower premarket on Wednesday. Frontier was also lower in the premarket.
5. Musk has spent $2.64 billion on Twitter stock and submitted shows so far this year
Elon Musk speaks at the Automotive World News Congress at the Renaissance Center in Detroit, Michigan.
Rebecca Cook | Reuters
Tesla CEO Elon Musk has been buying Twitter stock on an almost daily basis since late January, spending $2.64 billion on his current stake in the company, according to a regulatory filing Tuesday. The disclosure came in a 13D, confirming Musk’s intentions to be more active in Twitter’s business. He was announced as a new board member on Tuesday. Twitter also confirmed it is testing an edit button, which was the subject of a Twitter poll by Musk on Monday, hours after a filing revealed he had acquired a over 9% stake in the social network.
– CNBC reporters Jeff Cox, Diana Olick, Leslie Josephs, Lora Kolodny and Jordan Novet, as well as The Associated Press and Reuters contributed to this report.
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