5 things to know before the stock market opens on Thursday, April 7

5 things to know before the stock market opens on Thursday, April 7

Here are the most important news, trends and analysis investors need to start their trading day:

1. Wall Street looks stable after two days of Fed-driven selling

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, March 29, 2022.

Brendan McDermid | Reuters

US Stock Futures they were relatively flat on Thursday as Wall Street tried to avoid a three-session losing streak. the nasdaq led sales in the last two days as the Federal Reserve He began to adopt a more aggressive tone: sinking 2.2% on Wednesday, a day after a drop of about 2.3%.

  • After several Fed officials called for more aggressive tightening to combat inflation, the central bank minutes from their March meeting indicated a general agreement to reduce its massive balance sheet by $95 billion per month.
  • The minutes also showed Fed officials were considering larger-than-usual 50-basis-point rate hikes after a 25-basis-point increase last month, the first increase in more than three years.

2. Key Treasury yield spread remains inverted after jobless claims data

Historically, these investments have occurred before economic downturns. With a strong labor market, the Fed may have room to slow the economy to fight inflation, threading its dual mandate of promoting maximum employment and controlling prices. The central bank is expected to raise rates at the remaining six meetings this year. The size of those increases is the real question.

3. Warren Buffett’s Berkshire Hathaway reveals a large stake in HP

Warren Buffett at the Berkshire Hathaway Annual Meeting in Los Angeles, California. May 1, 2021.

Gerard Miller | CNBC

Warren BuffetBerkshire Hathaway has initiated a major stake in tech hardware stocks hp inc.becoming the largest shareholder of the manufacturer of printers and PCs. berkshire bought almost 121 million shares of HP, about 11%, in accordance with the value statements, a stake that was worth about $4.2 billion based on HP’s closing stock price on Wednesday. That’s before a 15% jump in HP shares in premarket Thursday following the news, which came hours after the closing bell. Berkshire has become more active in recent months, announcing a deal to buy an insurance company. aleghany for $11.6 billion and buying shares of the energy company Western Petroleum.

4. Shell announces write-off of up to $5 billion in assets after exiting Russia

Royal Dutch Shell products in Torzhok, Russia.

Andrey Rudakov | Mayor Bloomberg | fake images

shell said Thursday that it will write off between $4 billion and $5 billion after withdrawing from Russia. The announcement offers a first glimpse of the potential financial impact for Western oil giants that have left Russia following Moscow’s unprovoked attack. invasion of ukraine. More details on the impact of ongoing developments in Ukraine will be published in Shell’s first quarter earnings report on May 5. the company said. Shell previously estimated that Russia’s write-downs would reach $3.4 billion. Last month, Shell was forced to apologize for buying Russian oil at deep discounts and subsequently announced its withdrawal from Russia.

5. Ukraine asks NATO for more weapons as Russia regroups for eastern offensive

An employee of the funeral service looks at the bodies of civilians, collected from the streets of the local cemetery, as Russia’s attack on Ukraine continues, in the city of Bucha, outside kyiv, Ukraine, on April 6, 2022.

stringer | Reuters

Ukraine on Thursday asked NATO for more weapons in their fight against Russia to help prevent further atrocities like those reported in Bucha, outside kyiv. Western countries have provided Ukraine with man-portable anti-tank and anti-aircraft weapons, but have been reluctant to supply planes, tanks or any other equipment that requires training to use.

  • Russian forces, who failed to quickly take the Ukrainian capital, are regrouping for an offensive in eastern Ukraine, where Moscow recognized the Luhansk and Donetsk areas as independent states early in its incursion.

— CNBC reporters yun li, Jeff Cox, samantha subin, hannah miao, jesse pound, elliot-smith and silvia amaro as well as The Associated Press contributed to this report.

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