Broad market indexes turned negative in early trading but small cap index edged up slightly higher as investors digested Fed officials' discussion about rate outlook and a plan to sell U.S. bonds. Crude oil edged higher to just below $97 and international oil hovered near $102 a barrel. Utilities and consumer products companies were in favor as investors looked for safe haven stocks.
KHC PM GIS
KHC PM GIS
U.S. stock indexes in steady decline touched the lows just ahead of the release of the monetary policy meeting minutes. Indexes trimmed losses after the release of the Fed's plan to shrink a bloated portfolio of U.S. bonds but the Nasdaq Composite led the losers with more than 2% loss. Pre-earnings rally was on hold as the dollar advanced to a 11-month high and the U.S. 10-year yield rose to 2.6%.
MSFT AMZN CRM DHI DG
MSFT AMZN CRM DHI DG
Stocks of Spirit Airlines, Frontier Group, and JetBlue turned lower after the unsolicited bid raised uncertainty for at least few months. Rivian gained 1.6% after the EV maker said it is on track to meet its production goal of 25,000 units in the year. Simply Good Foods gained 4% after the healthier snack maker lifted sales outlook. Intel fell 1% after it suspended its operations in Russia.
U.S. stock futures are pointing to another loss of at least 1% at the opening as bond yields continue to march upwards. 10-year U.S. bond is trading at 2.65% ahead of the release of minutes of meetings this afternoon. Tech stocks are leading the losers and energy stocks are in focus ahead of the Congressional hearing today. Oil inched higher to $103.30 a barrel after dipping in Tuesday.
XOM CVX HES
XOM CVX HES
U.S. indexes fell 1% and Nasdaq Composite dropped 2.2% after a dovish Fed Governor said that the central bank needed an aggressive approach in tackling inflation. 10-year U.S. bond closed at 2.55%, a 3-year high, and 5-year at 2.70%. Inflation worries drove the market sentiment and tech stocks took the hit. The 30-year mortgage rate crossed 5% for the first time since 2011 and two days in 2018.
AAPL MSFT AMZN DHI TOL
AAPL MSFT AMZN DHI TOL
MarketAxess Holdings dropped 9% after the fixed income trading platform reported its total credit monthly average daily volume fell 3% from a year ago. The combined daily U.S. high grade and high yield volume fell 6% but total credit trading volume in the month increased to $894.6 billion, second best monthly record.
MKTX
MKTX
Carvana plunged 9% after an RBC Capital analyst downgraded the stocks and highlighted that the company is expanding at a faster pace than the sales growth. The online auto retailer is expected to sell about 550,000 vehicles in 2022 against the expanded capacity of 3.3 million. Moreover, the recent Adesa car auction service may face integration risks.
CVNA
CVNA
Twitter extended gains for the second day after the social media company said it has appointed Elon Musk on its board a day after he declared passive holding of 9%. Peabody Energy extended its weeklong advance after the European Union is looking to place a ban on Russian coal. Carnival Corp said it had the busiest week ending on March 28.
TWTR BTU CCL JHX
TWTR BTU CCL JHX
Amazon said it has signed rocket launch deals with three companies to build a network of internet satellites. The deal involves as many as 83 launches and place 3,236 low earth orbit satellites to provide high speed internet service anywhere in the world. Amazon is playing catch up to the Starlink system with about 2,000 satellites in place and 250,000 subscribers.
AMZN TSLA BA LMT
AMZN TSLA BA LMT
U.S. indexes closed higher led by a 1.8% rise in Nasdaq Composite. Apple, Microsoft, Amazon added more than 1% and Google, Meta Platforms, Tesla, and Twitter jumped more than 2%. Bond yields continued to send mixed signals and 2-year and 10-year and 5-year and 30-year U.S. Treasury yields remained inverted.
MSFT ADBE AAPL TSLA AMZN
MSFT ADBE AAPL TSLA AMZN
Tesla deliveries of electric vehicles in the first quarter ending in March 2022 jumped 69% to 310,000 from 184,800. In the quarter, the automaker produced 305,000 units compared to 180.338 a year ago. Despite the severe supply chain challenges, the electric vehicle maker managed to surpass its previous quarterly record production of 308,000 reached in the last quarter of 2021.
TSLA
Nordstrom said it is reorganizing its top management structure and streamlining operations to revive growth at its discount chain Rack. The fashion retailer said it has centralized customer strategy under one leader and consolidated store operations for Nordstrom and Rack to improve operating efficiency. Rack same store sales fell 5% in the fourth quarter and dropped 8% in the third quarter 2021.
JWN
U.S. stocks opened higher and German Chancellor said Western nations are set to impose additional sanctions on Russia this week. In Asian markets, Hong Kong index surged 2% led by a surge in Chinese tech stocks after China proposed to remove a key audit requirement for the U.S. listed companies. European markets also extended gains.
BABA
BABA
Investors bid up stocks on the first day of April and second quarter after facing worst return in the previous quarter in two years. A decline in oil price below $100 a barrel and a sustained recovery in the job market also helped the sentiment. 2-year at 2.448% closed above 10-year bond yield. Energy stocks were on the defensive after leading other sectors in the first quarter with 33% surge.
GM TM F AAPL DE
GM TM F AAPL DE