5 issues to know earlier than the inventory market opens on Wednesday Could 19th
Here are the top news, trends, and analysis that investors need to get their trading day started:
1. Stock futures plunge as tech names slide and Bitcoin plummets
Traders work on the trading floor of the New York Stock Exchange.
2. Bitcoin drops below $ 40,000 for the first time in 14 weeks. Tesla falls
A visual representation of the cryptocurrency Bitcoin on November 21, 2020 in London, England.
Jordan Mansfield | Getty Images
Bitcoin fell below $ 40,000 for the first time in 14 weeks on Wednesday. In fact, the world’s largest cryptocurrency hit a morning low of under $ 37,000 per unit, a decline of over 40% from last month’s all-time high of near $ 65,000. However, Bitcoin is still up about 40% since the start of the year and more than 300% in the past 12 months.
Elon Musk, the CEO of Tesla.
Christophe Gateau / Image Alliance via Getty Images
Tesla’s shares, which invested corporate money in Bitcoin, fell around 3% to around $ 561 on the Wednesday before going public. A week ago, Bitcoin fell below $ 50,000 and Tesla shares fell below $ 600 each after CEO Elon Musk suspended purchases of electric vehicles using Bitcoin over concerns about the environmental impact of digital currency mining. Tesla stock hit an all-time high of $ 900 on January 25.
3. Bond yields rise ahead of the minutes of the Fed meeting in April
The 10-year government bond yield was above 1.67% early Wednesday before the minutes of the April Federal Reserve meeting were released. At that meeting, central bankers kept interest rates close to zero and the pace of asset purchases stable. They recognized an increase in economic activity as the US recovered from Covid, but insisted that inflation would be temporary. The 10-year return was over 1.7% on last week’s sell-off, its highest level in more than a month after a 14-month high in March.
4. Target is Lowe’s hit, but stocks are moving in opposite directions
View of reusable bags in the Target store in New York on April 13, 2021.
John Smith | Corbis News | Getty Images
Target shares, which had risen nearly 17% as early as 2021, were poised to add another 3% after the retailer posted better-than-expected earnings of $ 3.69 per share on Wednesday morning on a 23% jump in sales to 24.2 Billion in the first quarter. Target benefited from a re-opening economy and buyers who had additional money due to government economic reviews. The company sees modest growth for the remainder of the year.
A shopper departs after visiting a Lowe hardware store in Philadelphia, Pennsylvania on November 4, 2020.
Mark Makela | Reuters
Lowe’s shares, which rose 20% this year, should fall more than 2% to open on Wednesday, despite earnings falling nearly 24% to $ 24.4 billion in the first quarter with sales up nearly 24% was up more than 24% to $ 24.4 billion. Concerns crept in on challenges in the real estate market, including labor shortages and rising lumber prices.
5. New York AG’s investigation into Trump Organization becomes criminal
President-elect Donald Trump takes the elevator to the lobby after meeting at Trump Tower in New York City on January 16, 2017.
Dominick Reuter | AFP | Getty Images
The office of the Attorney General of New York, Letitia James, which is already conducting a civil investigation into the company of former President Donald Trump, is now also investigating the Trump organization “in a criminal capacity,” its spokesman said on Tuesday evening. James’ spokesman implied that the AG’s investigation into the ongoing criminal investigation against Trump and the Trump Organization is being conducted by the Manhattan District Attorney’s office, Cyrus Vance Jr.
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