Stock Market News: Nasdaq leads selloff, Robinhood for sale? Oil settles at $109
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| Symbol | Price | Change | %Change |
|---|---|---|---|
| I:COMP | $11,506.52 | -101.10 | -0.87% |
| I:DJI | $31,439.58 | -61.10 | -0.19% |
| SP500 | $3,900.35 | -11.39 | -0.29% |
The Nasdaq Composite fell 0.8% leading a modest selloff in U.S. stocks as investors await a fresh update on 1Q GDP, due Wednesday, as well as new inflation data the following day. Shares of Robinhood spiked 14% during the final hour of trading on reports Sam Bankman-Fried, CEO of FTX, is eyeing a possible offer for the trading app. In commodities, oil closed at the $109 per barrel level.
Sam Bankman-Fried, CEO of exchange FTX, is reportedly eyeing Robinhood, Bloomberg reports.
Kingsview Asset Management CIO Scott Martin and Capitalist Pig Hedge Fund Manager Jonathan Hoenig assess the market inflation outlook.
President Joe Biden pledged $200 billion over five years to counter China's global influence weeks after opening the door to more solar panel imports.
Biden said Sunday the U.S. would contribute the funds, via grants, federal money and private sector investment, as part of the so-called Partnership for Global Infrastructure and Investment, which will finance projects in the developing world. Other members of the G7 committed an additional $400 billion to the initiative, which is designed to counter China's growing financial influence worldwide.
"This isn’t aid or charity; it’s an investment that will deliver returns for everyone, including the American people and the people of all our nations," the president said during a speech in Germany.
Kevin Slagle, vice president at Western States Petroleum Association, warns if government officials push industry leaders away from being part of the solution, costs will continue to rise and reliability will drop.
GE Logo
Larry Culp will become CEO of GE Aviation while maintaining his Chairman and CEO role of parent company GE, the company announced today.
“GE Aviation is an exceptional business in growing commercial and military sectors that is shaping the future of flight. There is tremendous opportunity in aviation over the coming years, and the Board and I decided it is the right time for me to take on this expanded role and work even more closely with the team to support our customers, meet the unprecedented demand ramp, and prepare for GE Aviation’s future as an independent public company" said Culp in the announcement.
Stephen Moore, visiting fellow at the Heritage Foundation, argues the economic situation could get worse depending on fiscal and monetary policy moves in the second half of the year.
Jeff Sica, founder and Chief Investment Officer of Circle Squared Alternative Investments, assesses the market and shares real estate practices during times of inflation.
U.S. stocks see-sawed as traders kicked off the week and as investors took in a stronger than expected durable goods report which rose 0.7% and better than expected data on pending home sales which also rose 0.7%. In commodities, oil slipped to $106 per barrel.
Wall Street futures
U.S. equity futures are higher on Monday morning, extending Friday's rally.
Meanwhile, oil prices are slightly higher, with West Texas Intermediate crude futures trading at around $108.15 a barrel and Brent crude futures trading at about $113.90 per barrel.
The Group of Seven economic powers are planning a continued commitment to supporting Ukraine, with the U.S. preparing to purchase an advanced surface-to-air missile system for the country.
The Group of Seven economic powers are planning a continued commitment to supporting Ukraine, with the U.S. preparing to purchase an advanced surface-to-air missile system for the country.
The leaders are set to agree to pursue a price cap on Russian oil, raise tarrifs on Russian goods and impose new sanctions on officials supporting Russia's war on Ukraine.
The G-7 leaders met in the German Alps and spoke virtually with Ukrainian President Volodymyr Zelenskyy. During Monday's portion of the three-day annual summit, the leaders focused on Ukraine.
Russia's war on Ukraine, which was launched in late February, was already at the center of attention as G-7 leaders opened their summit on Sunday.
President Joe Biden said Russian President Vladimir Putin "has been counting on, from the beginning, that somehow NATO and the G-7 would splinter, but we haven’t and we’re not going to."
Italian prime minister Mario Draghi has pushed for caps on the price of Russian oil and pipeline gas, and at Sunday’s opening session, Macron indicated his support for the idea.
"Putting a ceiling on the price of fossil fuels imported from Russia has a geopolitical goal as well as an economic and social one," Draghi told the G-7.
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Russia defaulted on its foreign-currency sovereign debt for the first time in more than a century after failing to make two payments by the Sunday night deadline.
Russia defaulted on its foreign-currency sovereign debt for the first time in more than a century after failing to make two payments by the Sunday night deadline.
Moscow missed the deadline to meet a 30-day grace period on interest payments that were originally due May 27, but it could be a while before the default is confirmed.
The debt default stems from the sanctions imposed over Russia's invasion of Ukraine, which was launched in late February. The default signals the first of its kind since 1918, although Russia has called it artificial because it can afford to pay its debts, but sanctions have frozen its foreign currency reserves held abroad."
There is money and there is also the readiness to pay," Russian Finance Minister Anton Siluanov said last month. "This situation, artificially created by an unfriendly country, will not have any effect on Russians’ quality of life."
The U.S. Treasury Department last month ended Russia’s ability to pay back debt to international investors through American banks. The Russian Finance Ministry then said it would pay dollar-denominated debts in rubles and offer "the opportunity for subsequent conversion into the original currency."
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Cryptocurrency was trading higher early Monday with Bitcoin, Ethereum and Dogecoin all showing gains around 3:30 a.m. Monday.
Cryptocurrency was trading higher early Monday with Bitcoin, Ethereum and Dogecoin all showing gains around 3:30 a.m. Monday.
Bitcoin was trading at around $21,340 (+1.34%), up more than $285. For the week, Bitcoin was trading up 2.81%. For the last month, Bitcoin has traded down more than 28%.
Ethereum was trading higher as well, with the cryptocurrency at $1,228 (+2.3%), up $27.16 per coin. For the week, Ethereum was higher by 6.79%. For the month, however, it was down more than 33.5%.
Dogecoin was trading at $0.0769 (+4.43), up $0,0032) early Monday. It was higher for the week as well, up almost 22.5%. For the month, Dogecoin was down 6%.
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The price of a gallon of regular gasoline slid a bit more overnight with the price Monday dropping to $4.897 from Sunday’s $4.90, according to AAA.
The price of a gallon of regular gasoline slid a bit more overnight with the price Monday dropping to $4.897 from Sunday’s $4.90, according to AAA.
The price on Saturday was at $4.908. Gas prices have now declined for 11 straight days. On Friday, a gallon of gasoline cost $4.920.
Last week, the price of that same gallon of gasoline was $4.981. A month ago, the price of gasoline was $4.599. Last year, a gallon of gasoline cost $3.095.
Diesel slipped slightly as well to $5.794 down from $5.797 on Monday.
A week ago, a gallon of diesel was $5.815. A month ago, that same gallon of diesel sold for $5.53 a gallon. A year ago, diesel sold for $3.237, AAA reported.
U.S. stocks were whipsawing overnight after a rally Friday as fresh economic data tempered investors' expectations of steep Federal Reserve interest-rate hikes.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| I:DJI | $31,500.68 | +823.32 | +2.68% |
| SP500 | $3,911.74 | +116.01 | +3.06% |
| I:COMP | $11,607.62 | +375.43 | +3.34% |
U.S. stocks were whipsawing overnight after a rally Friday as fresh economic data tempered investors' expectations of steep Federal Reserve interest-rate hikes.
Stocks climbed last week as pressure from rising Treasury yields let up somewhat and investors speculated the Federal Reserve may not have to be as aggressive about raising interest rates as earlier thought as it fights to control inflation. That gave Wall Street a reprieve from its recent tumbles.
Markets seemed unfazed by the possibility that Russia may have defaulted on its foreign debt for the first time since the 1917 Bolshevik Revolution, further alienating the country from the global financial system amid its war in Ukraine.
Russia faced a Sunday night deadline to meet a 30-day grace period on interest payments originally due May 27. But it could take time to confirm a default.
Positive news about inflation helped push stocks in New York higher on Friday, but the boost to sentiment may prove ephemeral, “largely because the downward trend for equity indices remains intact and we have seen previous instances of a single event pertaining to inflation, economic outlook and central banks’ policies bringing back market jitters and reversing dip-buying sentiments," Jun Rong Yeap of IG said in a commentary.
The S&P 500 notched a 6.4% gain for the week, erasing the brutal loss it took a week earlier, though it’s still close to 20% below its record set early this year.
On Friday, it gained 116.01 points to 3,911.74 The Dow Jones Industrial Average rose 2.7% to 31,500.68, while the tech-heavy Nasdaq ended 3.3% higher, at 11,607.62.
Smaller company stocks also rallied. The Russell 2000 rose 3.2% to 1,765.74.
To beat down punishingly high inflation, central banks are raising interest rates and taking other measures that hurt prices for investments and could slow the economy enough to cause a recession.
But pressure from rising Treasury yields has abated somewhat as investors speculate the Federal Reserve might be able to take a lighter touch in raising interest rates than earlier thought.
Meanwhile, Asian shares advanced Monday.
Hong Kong's Hang Seng index led regional gains, surging 2.5% to 22,249.47, while the Nikkei 225 in Tokyo gained 1.5% to 26,886.36. In South Korea, the Kospi climbed 1.8% to 2,408.17. Australia's S&P/ASX 200 added 1.9% to 6,704.30 while the Shanghai Composite index rose 0.8% to 3,377.90.
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Oil edged down on Monday in a volatile session as investors stood on guard for any moves against Russian oil and gas exports that might come out of a meeting of leaders of the Group of Seven (G7) nations in Germany.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| USO | $81.24 | +2.23 | +2.82% |
| CVX | $144.79 | +2.26 | +1.59% |
| XOM | $86.94 | +1.69 | +1.98% |
Oil edged down on Monday in a volatile session as investors stood on guard for any moves against Russian oil and gas exports that might come out of a meeting of leaders of the Group of Seven (G7) nations in Germany.
The prospect of more supply tightness loomed over the market as western governments sought ways to cut Russia's ability to fund its war in Ukraine, even though G7 leaders were also expected to discuss a revival of the Iran nuclear deal, which might lead to more Iranian oil exports.
Members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies including Russia, known as OPEC+, will likely stick to a plan for accelerated oil output increases in August when they meet on Thursday, sources said.
But, for now, the pressing supply worries outweighed growing concerns over the potential for a global recession following a string of downbeat economic data from the U.S., the world's biggest oil consumer.
Brent crude futures edged down 8 cents to $113.04 a barrel by 0632 GMT after rebounding 2.8% on Friday.
U.S. West Texas Intermediate crude was at $107.38 a barrel, down 24 cents, or 0.2%, following a 3.2% gain in the previous session. Both contracts fell last week for the second week in a row as interest rate hikes in key economies strengthened the dollar and fanned recession fears.
However, oil prices are well supported above $100 a barrel while the backwardation in prompt monthly spreads remained wide.
Backwardation is the market structure when prompt futures prices are higher than prices for delivery in later months, indicating limited supplies.
G7 leaders, who began their meeting on Sunday, are expected to discuss options for tackling rising energy prices and replacing Russian oil and gas imports, as well as further sanctions that do not exacerbate inflation.
These measures include a possible price cap on Russian oil exports to reduce Moscow's revenues while limiting the damage to other economies.
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