5 issues you must know earlier than the inventory market opens on Monday
Here is the key news investors need to start their trading day:
1. The markets are expected to recover
US stock indices have had their worst week since March. A regional bank stocks rally and strong Apple Earnings lifted the market on Friday and April jobs data came in better than expected despite recession concerns. This week, focus will turn to monthly inflation data after the Federal Reserve hiked interest rates again to try to cool stubbornly high prices. The consumer price index comes on Wednesday, the producer price index on Thursday. Inflation is gradually easing and the central bank has signaled that it may suspend rate hikes amid concerns about a slowing economy and the health of the banking system. Follow live market updates.
2. Buffett dishes
Warren Buffett and his right-hand man Charlie Munger, meanwhile, weighed everything from local banks to artificial intelligence Berkshire HathawaySaturday the annual general meeting of shareholders. While Buffett said banks may not be out of the woods just yet, he said he believes deposits are safe. The Oracle of Omaha said it also noticed a slowdown in activity at some Berkshire companies. The conglomerate has no plans to take full control of the oil giant Western Petroleum‘ Buffett said.
3. Debt ceiling drama
The coming days could prove pivotal in Washington’s effort to raise the debt ceiling and avoid a first-ever Treasury default. President Joe Biden is set to meet with the top four congressional leaders on Tuesday as lawmakers seek to break a deadlock on increasing credit limits. Treasury Secretary Janet Yellen warned on Sunday that a “precipitous economic downturn” would ensue if Congress didn’t act in the next few weeks. The Treasury Department estimates that the US could run out of money to pay its bills as early as June.
4. Regionals rise
Regional bank stocks appeared poised to rise for a second straight day on Monday after First Republic’s failure sent their shares plummeting early last week. The third regional bank failure since March has put the sector – and names like it – under closer scrutiny PacWest Bancorp in particular. Shares of the lender rose in premarket trading Monday after PacWest announced Friday night it would cut its dividend. The rise of the bank helped fuel a broader rally in the sector SPDR S&P Regional Banking ETF advanced in premarket trading.
5. Disney on deck
Walt Disney will head the quarterly earnings chart expected for this week. Other results will shed light on consumer health. Here are some of the reports expected this week:
– CNBC’s Samantha Subin, Jeff Cox, Yun Li, Sarah Min, Tanaya Macheel, Alex Harring, Hakyung Kim, Christina Cheddar-Berk, and Ashley Capoot contributed to this report.
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