Here are the top news, trends and analysis that investors need to start their trading day:
1. Shares will rebound after Thursday’s sale
Traders work on the floor of the New York Stock Exchange.
NYSE
US equity futures bounced on Friday after rising government bond yields tumbled again on Thursday, causing the Nasdaq to drop 3%. The S&P 500, which also has a heavy technical weighting, fell nearly 1.5% from the previous record. Both stock benchmarks had their worst days in nearly a month. The Dow Jones Industrial Average fared much better, but still fell nearly 0.5% from the previous record. The Nasdaq and S&P 500 were lower during the week as of Thursday’s close, while the Dow was higher for the week.
2. The bond market is revolting to adjust to the Fed’s inflation policy
Federal Reserve Chairman Jerome Powell overhears during a Senate Banking Committee hearing on Capitol Hill, Washington, USA, Dec. 1, 2020.
Al Drago | Reuters
The yield on 10-year Treasury bonds fell on Friday, a day after hitting a 14-month high of 1.754%. Traders rebelled over the Federal Reserve’s willingness to kick-start the economy and inflation as the labor market recovers. Interest rates barely moved on Wednesday afternoon after the Fed meeting ended, initially in response to the forecast that interest rates would not rise until 2023. The rapid rise in interest rates is driven by concerns that more Covid stimulus measures on top of an already recovering economy will cause worrying inflation. The 10-year yield started the year at less than 1%.
3. Nike sales lost estimates; FedEx’s earnings add up
The Nike logo will be on display at the Nike store on February 22, 2021 in New York City.
John Smith | Corbis News | Getty Images
The Dow stock of Nike fell nearly 2% in Friday’s premarket, the morning after the athletic footwear and apparel manufacturer reported third-quarter sales that missed estimates. Sales growth of 2.5% to $ 10.36 billion was negatively impacted by widespread port congestion in the US and ongoing store closings in Europe. Nike also warned about the outlook. However, the company exceeded estimates by 14 cents with a third quarter profit of 90 cents per share.
Boxes of the Moderna COVID-19 vaccine are being prepared for shipment to the McKesson Distribution Center in Olive Branch, Mississippi, USA December 20, 2020.
Paul Sancya | Reuters
FedEx, part of the Dow Jones Transportation Average, jumped 5% in Friday’s premarket. The post-bell delivery giant reported third-quarter earnings of $ 3.47 a share on Thursday, 24 cents better than expected. Sales were up 23% to $ 21.51 billion, also well above estimates. Major holiday sales offset the severe weather in February that negatively impacted operations at several of FedEx’s largest hubs.
4. CDC says the US administered more than 100 million shots of Covid
US President Joe Biden speaks about the state of vaccinations in response to coronavirus disease (COVID-19) in the East Room at the White House in Washington, March 18, 2021.
Carlos Barria | Reuters
The CDC’s vaccine tracker, updated every night, showed Friday morning that 115.7 million doses of Covid vaccines were delivered in the US, putting President Joe Biden’s first 100 million shots in the office’s first 100 days well ahead of schedule . Last week, Biden said he expected to hit the target by Day 60. It happened on Day 57. As vaccinations progressed in the US, the Biden administration on Thursday revealed the outline of a plan to provide a limited number of vaccine doses to Canada and Canada Borrow Mexico. .
5. The first meeting between the US and China under Biden is off to a slow start
US Secretary of State Antony Blinken speaks to Yang Jiechi, Director of the Central Foreign Affairs Commission Office, and Wang Yi, Chinese Secretary of State, during the opening session of the US-China talks in the Captain Cook Hotel in Anchorage, Alaska on March 18. , 2021.
Frederic J. Brown | AFP | Getty Images
The first high-level meeting of US and Chinese officials under the Biden administration began with a wave of insults at a press event ahead of Thursday’s meeting in Alaska. The scheduled four-minute photo shoot for the officials to address reporters lasted an hour and 15 minutes, according to NBC News, due to the frothy exchanges. Expectations for the two-day talks, which will end Friday, were already low.
– The Associated Press contributed to this report. Get the latest news about the pandemic with CNBC’s coronavirus blog