1. Wall Street is going to recover after the worst search for the S&P 500 since 2020
The sign for Wall Street appears with US flags outside the New York Stock Exchange. Yuki Iwamura | Afp | Getty Images Dow futures jumped 400 points, or 1.4%, on Tuesday after a tremendous week of sales. The S&P 500 and Nasdaq futures jumped about 1.5% to start the shortened holiday week. The yield of the 10-year bond remained on Tuesday from the highs of 2011, almost 3.28%, a level that helps to remove the pressure from the shares. Following the Federal Reserve raising interest rates last week since 1994 to fight inflation, Fed Chairman Jerome Powell is due to deliver his semi-annual monetary policy report to Congress on Wednesday and Thursday.
The S&P 500’s weekly drop of 5.8% was the worst since March 2020, the month the Covid pandemic was declared, as investors worried about a recession. The Dow closed below 30,000 points again on Friday and lost 4.8% last week. This is the weakest weekly return for the average of 30 shares since October 2020. No data on the Nasdaq’s 4.8% weekly loss with poor performance. All three stock quotes fell for three consecutive weeks. The S&P 500 and Nasdaq showed weekly losses in 10 of the last 11 sessions, both in bear markets. The Dow negative week was the 11th of the last 12, in a sharp correction.
2. US oil prices recover from some of last week’s sharp declines
West Texas Intermediate (US benchmark crude) rose 2% to about $ 110 a barrel on Tuesday, triggering a strong pre-market rally in energy stocks. However, the WTI sank more than 9% last week, breaking a seven-week winning streak and formed about 15% on Friday below the 13-year high in early March of $ 130.50. Seeing supply and demand concerns due to geopolitical factors, including Russia’s war in Ukraine and rolling restrictions and restrictions on China’s Covid mitigation, have kept oil and gasoline high.
But as of Tuesday, the national average for a gallon of gas had fallen below $ 5. That’s still very high, and President Joe Biden said Monday that he was seriously considering temporarily suspending the federal gas tax before July 4.
3. Kellogg plans to divorce. JetBlue increases its offer to Spirit
Kellogg announced plans to split into three independent companies on Tuesday. The food giant will split the North American cereal business and crop sector, which accounted for about 20 percent of revenue last year. The third independent company will be the rest of the business – including snacks, pasta, the international North American cereal and iced breakfast brand, which accounted for about 80% of its sales in 2021. CEO Steve Cahillane told CNBC on Tuesday that it is possible that the name Kellogg will somehow remain. Kellogg shares jumped 6% in the premarket after the announcement. Shares of Spirit Airlines jumped 9% in Tuesday’s premarket, but remained below JetBlue’s sweet takeover bid of $ 33.50 per share on Monday. Spirit said last week that it was in talks with JetBlue about its offer and is expected to decide on the offer by June 30th. JetBlue said its proposal represents a 68% premium on the imputed value of a competitive offering of shares and cash from its parent company Frontier Airlines.
4. Musk says 3 issues need to be resolved for the Twitter acquisition to proceed
Elon Musk said there are three key hurdles he must overcome before he can complete his $ 44 billion Twitter purchase. In an interview with Bloomberg on Tuesday, the CEO of Tesla and SpaceX said that there are a number of “unresolved issues” that need to be resolved before the acquisition can proceed: fake accounts, debt financing and the approval of Twitter shareholders. The fate of the deal has become more uncertain in recent weeks, with Musk threatening to step down over questions about Twitter revelations about the number of spam accounts on the platform.
5. Bitcoin moves higher after sinking below $ 18,000 over the weekend
Bitcoin rose more than 5% on Tuesday, behind $ 21,000 after a wild long weekend. The world’s largest cryptocurrency fell to about $ 17,600 on Saturday, falling below the $ 20,000 base level for the first time since December 2020. At its low on Saturday, bitcoin was about 74% below its all-time high. of over $ 68,000 in November, which was the month of the last Nasdaq record. Bitcoin is trading in parallel with the technologically heavy index, refuting the argument of encryption as inflation hedging like gold. CNBC’s Yun Li, Peter Schacknow, Samantha Subin, Jesse Pound, Amelia Lucas and Ryan Browne as well as NBC News and Reuters contributed to this report. – Join the CNBC Investing Club now to follow every Jim Cramer stock move. Follow the broader market action as a professional on CNBC Pro.
