1. Futures are virtually stable after Wednesday’s fall
Traders work on the New York Stock Exchange (NYSE) in New York, June 3, 2022. Brendan McDermid Reuters US stock futures were virtually unchanged on Thursday, as the key release of data for May, set for Friday, is further focused. Traders are also watching the European Central Bank’s latest interest rate decision on Thursday. Wall Street closed lower generally a day earlier. The S&P 500 fell 1.08% on Wednesday, while the Dow Jones Industrial Average and Nasdaq Composite lost 0.81% and 0.73% respectively. The only sector in the S&P 500 that ended Wednesday was energy, closing at its highest point in almost eight years. All three major US stock indices broke two-day highs on Wednesday as investors continued to watch the bond market and seek new information on the trajectory of economic growth. The Dow is now virtually stable for the week and almost 11% below its high record. The S&P 500 rose 0.18% weekly to date and a 14.6% discount at its highest point in early January. The Nasdaq is firmly in the green for the week, up 0.61%. However, the technology index is still well established in a bear market, as it is over 25% below the all-time high in November.
2. 10-year yield transactions over 3%. oil basically level
The yield on the 10-year government benchmark bond remained above 3% on Thursday morning, after jumping above this psychological level on Wednesday. US government bond prices, which are reversing in yields, fell this week. The yield on the 10-year bond closed last week at 2.941% and only at the end of May it stood at around 2.71%. Stock investors closely watched bond yields rise in 2022, as higher interest rates typically push growth-oriented technology stocks and have significant cash flows forecast for the coming years. Oil prices were virtually stable on Thursday. US benchmark West Texas Intermediate fell about 0.2 percent to about $ 121.90 a barrel. Brent crude, the international benchmark, traded at $ 123.48 a barrel, just where it ended Wednesday when WTI and Brent hit a two-month high. The recent rise in oil prices came as the reopening of Covid in China is expected to stimulate more demand while supply concerns remain elsewhere.
3. Tesla shares are rising after the upgrade of UBS
A Tesla store appears in Shanghai, China, February 1, 2022. Costfoto | Future Publishing | Getty Images Shares of Tesla rose 3.5% in early trading on Thursday as UBS upgraded its electric vehicle maker to a market. Tesla shares have struggled this year, falling more than 30% year-on-year since closing Wednesday. Despite this sharp setback, UBS wrote to customers that it was “time to be bold” with the stock, adding that the company’s future is still very bright. Pre-market gains for Tesla come after shares rose 1.25% on Wednesday to an otherwise downtrend for the S&P 500. Tesla has the sixth highest weight in the S&P 500.
4. The target increases the quarterly dividend
A man enters a Target store in Washington, DC, on May 18, 2022. Stefani Reynolds | AFP | Getty Images Target announced on Thursday that its board of directors approved a dividend increase. The quarterly payment will increase by 20% to $ 1.08 per common share, from the previous level of 90 cents. The Minneapolis-based retailer is a member of the S&P 500 Dividend Aristocrats index, which is made up of companies that have increased their dividends annually for the past 25 years. Target said 2022 would be the 51st consecutive year this is being done. Thursday’s announcement by Target comes two days after the company warned that its financial gains for the second quarter would be squeezed as it took aggressive measures to get rid of excess stocks. Target stocks, which have fallen more than 30% from year to date, rose 0.76% in preliminary trading.
5. The Apple subsidiary will provide loans for the Pay Later service
The Apple website appears on a laptop screen and the Apple logo appears on a phone in this illustration. Jakub Porzycki | Nurphoto | Getty Images Apple plans to use its wholly-owned subsidiary to control credit and provide short-term installment loans to users of its new buy now, pay later service. The iPhone maker announced the new offer on Monday, as it started its developer conference. will be called Apple Pay Later and will be available later this year when the new iPhone 16 iOS software is released. Additional details about Apple Pay Later reflect the ambitions of the tech giant in the fintech industry. While Goldman Sachs is involved as the technical issuer of the loans granted through Apple Pay Later, it is noteworthy that Apple essentially retains its credit decisions and uses its balance sheet to issue loans. Buy now, pay later has become more popular in recent years. Start-ups like Affirm made big waves that established fintech companies like Square parent Block made deals to buy existing players, while PayPal launched its own offering. – Join the CNBC Investing Club now to follow every Jim Cramer stock move. Follow the broader market action as a professional on CNBC Pro.
