Here are the most important news, trends, and analysis investors need to start their trading day:
1. Stocks are going to bounce after Thursday’s sell-off
Traders work on the floor of the New York Stock Exchange.
US stock futures rebounded on Friday after Treasury yields hit tech stocks again on Thursday, sending the Nasdaq down 3%. The S&P 500, which is also heavily technology-weighted, fell nearly 1.5% from its previous record close. Both benchmarks had their worst days in nearly a month. The Dow Jones industrial average fared much better, but still fell nearly 0.5% from its previous record close. The Nasdaq and S&P 500, as of Thursday’s close, were lower for the week, while the Dow was higher for the week.
2. The bond market rebels as it adjusts to the Fed’s inflationary policy
Federal Reserve Chairman Jerome Powell listens during a Senate Banking Committee hearing on Capitol Hill, Washington, USA, December 1, 2020.
Al Drago | Reuters
The 10-year Treasury yield fell back on Friday, a day after hitting a 14-month high of 1,754%. Traders rebelled over the Federal Reserve’s willingness to allow the economy and inflation to intensify as the job market recovers. Yields barely moved Wednesday afternoon after the Fed meeting concluded, initially responding to the forecast that there will be no rate hikes until 2023. The rapid rise in yields is being driven by concerns that further stimulus from Covid, in addition to an economy that is already recovering, will cause worrying inflation. The 10-year yield started the year at less than 1%.
3. Nike sales lose estimates; FedEx revenue exceeds
The Nike logo will be seen in the Nike store on February 22, 2021 in New York City.
John Smith | Corbis News | fake images
Shares of Dow Nike fell nearly 2% in premarket Friday, the morning after the sportswear and apparel maker reported fiscal third-quarter revenue that did not meet estimates. Sales growth of 2.5% to $ 10.36 billion was impacted by widespread port congestion in the US and ongoing store closures in Europe. Nike also warned about the prospects. However, the company beat estimates by 14 cents with a third-quarter profit of 90 cents a share.
Boxes containing Modern COVID-19 vaccine are ready to be shipped to McKesson’s distribution center in Olive Branch, Mississippi, USA on December 20, 2020.
Paul Sancya | Reuters
FedEx, a component of the Dow Jones transportation average, jumped 5% in the premarket on Friday. The post-bell delivery giant on Thursday reported fiscal third-quarter earnings of $ 3.47 a share, 24 cents better than expected. Revenue increased 23% to $ 21.51 billion, also beating estimates. Large holiday sales made up for severe weather in February that affected operations at several of FedEx’s largest hubs.
4. CDC Says US Administered Over 100 Million Covid Injections
United States President Joe Biden speaks on the status of vaccines during a response event to coronavirus disease (COVID-19) in the East Room of the White House in Washington, on March 18, 2021.
Carlos Barria | Reuters
The CDC’s vaccine tracker, updated nightly, showed on Friday morning that 115.7 million doses of Covid vaccine have been administered in the US, reaching 100 million initial injections from President Joe Biden. in the first 100 days in office well ahead of schedule. Last week, Biden said he expected to reach the goal on the 60th day. It happened on the 57th. With the advancement of vaccines in the US, the Biden administration on Thursday revealed the outline of a plan to loan a number limited vaccine doses to Canada and Mexico. .
5. The first meeting between the United States and China under Biden is off to a rocky start
US Secretary of State Antony Blinken speaks in front of Yang Jiechi, Director of the Office of the Central Foreign Affairs Commission, and Wang Yi, Minister of Foreign Affairs of China, at the opening session of the State-to-State Talks United and China at the Captain Cook Hotel in Anchorage, Alaska, on March 18. , 2021.
Frederic J. Brown | AFP | fake images
The first high-level meeting of US and Chinese officials under the Biden administration began with a series of insults at a press event leading up to the meeting in Alaska on Thursday. The planned four-minute photoshoot for officials to address reporters ended up lasting an hour and 15 minutes due to the sparkling exchanges, according to NBC News. Expectations for the two-day talks, which are scheduled to conclude on Friday, were already low.
– Associated Press contributed to this report. Get the latest on the pandemic with CNBC Coronavirus Blog.