5 things to know before the stock market opens on Tuesday, April 5th

Here are the most important news, trends and analysis that investors need to start their trading day:

1. Wall Street looks lower after a two-session winning streak

Traders on the NYSE, April 4, 2022

Source: NYSE

Futures on US stocks fell on Tuesday after mutual growth on Wall Street. Nasdaq rose nearly 2% earlier in the week as a 27% rise in Twitter’s new share of Ilona Mask on the social network sparked a rise in technology stocks. Twitter added another 5% on Tuesday’s premiere on news that Musk will join the Twitters board. The stock market has entered a seasonally strong period, and April is usually one of the best months for stocks. In fact, according to MKM Partners, the S&P 500 in April increased by an average of 2.4% over the past 20 years. The index also showed an increase in April over 16 of the last 17 years.

Treasury bond yields rose on Tuesday morning, with major yield spreads – 2-year / 10-year and 5-year / 30-year – remaining upside down. This is a phenomenon of the bond market, which often preceded the economic downturn. Traders were selling bonds at the shorter end of the yield curve for fears that the Federal Reserve would become more aggressive in its interest rate picking cycle. Bond prices are moving in the opposite direction to the yield.

On Tuesday, U.S. oil prices rose due to supply problems as the U.S. and its European allies considered new sanctions against Moscow over allegations of war crimes by Russian troops in Ukraine. West Texas Intermediate added 1%, rising to more than $ 104 a barrel after a 4% rise on Monday interrupted the decline in two sessions.

2. Elon Musk will join the Twitter board, writing a poll with an edit button in tweets

Founder and CEO of Tesla Motors Elon Musk speaks during a media tour of the Tesla Gigafactory plant, which will produce batteries for the electric vehicle maker, in Sparks, Nevada.

James Glover II | Reuters

Musk will join the board of directors of Twitter after receiving a 9.2% stake in the social media company.

Hours after discovering that share, Musk tweeted a poll Monday night asking users if they wanted an edit button. More than 73% of the nearly 2.6 million respondents clicked “yse,” which was misspelled by Mask, to seem to prove that the ability to edit posts should be added to Twitter.

Twitter CEO Parag Agraval retweeted Mask and urged people to “vote carefully” as the consequences “will be important”. Tesla CEO’s investment, which made him Twitter’s largest shareholder, came after he said he was considering creating a new social networking platform.

3. Amazon signs a rocket deal with three firms to launch Internet satellites

Artistic images of rocket companies, from left to right: New Glenn, Vulcan Centaur and Ariane 6.

Blue Origin / United Launch Alliance / Arianespace

Amazon on Tuesday announced a major commercial rocket deal, signing with three companies to 83 launch its online Project Kuiper satellites. One of the companies is Amazon founder Jeff Bezos’ Blue Origin. The Kuiper project is Amazon’s plan to build a network of 3,236 satellites in low Earth orbit to provide high-speed Internet anywhere in the world. The FCC in 2020 allowed the Amazon system, in the creation of which the company said it was “investing more than $ 10 billion.”

4. The EU proposes to ban the import of Russian coal, sources said

French President Emmanuel Macron has called on the EU to ban Russian coal as part of a wave of new sanctions to further isolate the Kremlin.

Frank Rumpenhorst | Photo Alliance Getty Images

Two EU officials, who declined to name them because of the sensitivity of the talks, told CNBC on Tuesday that the European Commission was proposing to ban coal imports from Russia. The imposition of sanctions against the Russian energy sector has been a challenge for the European Union, given the high level of dependence of some countries on Moscow. Ukrainian President Volodymyr Zelensky intends to address a meeting of the UN Security Council on Tuesday, when images of atrocities appeared when Russian troops were withdrawn from cities around Kiev.

5. Shanghai extends the blockade; Subvariant BA.2 in 72% of cases in the United States

In recent Covid events:

  • According to the director of the Shanghai Task Force on the Epidemic, the coronavirus outbreak in China’s largest city remains “extremely bleak.” Much of eastern Shanghai, which was due to reopen last Friday, remained closed along with the western half of the city.
  • The more contagious subvariant of omicron BA.2 now accounts for 72% of Covid infections that have undergone genetic sequencing in the United States, according to the Centers for Disease Control and Prevention. BA.2 became dominant in the US last week.
  • Republicans and Democrats in the Senate reached an agreement Monday on additional Covid funding of $ 10 billion to purchase therapeutic drugs and vaccines and maintain the country’s test capacity when another wave of Covid attacks the United States. The amount is less than half of the $ 22.5 billion first requested by President Joe Biden.

– CNBC journalists Yun Li, Samantha Subin, Pippa Stevens, Sam Shad, Michael Schitz, Vicki McKeever and Spencer Kimball as well as the Associated Press and Reuters contributed to this report.

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