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Stocks dip as investors digest hawkish Fed remarks, eye more sanctions

Stocks dip as investors digest hawkish Fed remarks, eye more sanctions

U.S. stocks fell Wednesday as investors eyed more hawkish remarks from key monetary policymakers. These suggested that more members of the Federal Reserve were open to moving aggressively to raise interest rates and bring down demand and persistently elevated levels of inflation.

[Click here to read what’s moving markets heading into Thursday, April 7]

The S&P 500 dropped, adding to losses after the blue-chip index ended Tuesday’s session lower by 1.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The Dow Jones Industrial Average and Nasdaq also extended declines. In the bond market, the benchmark 10-year Treasury yield rose to top 2.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, marking its highest level since May 2019.

Developments on Russia’s war in Ukraine and the Western response remained in focus Wednesday as the U.S. announced another round of sanctions on the Kremlin. The U.S. add penalties to more Russian government officials and family members as well as to Russian-owned enterprises and financial institutions.

Meanwhile, hawkish commentary from Federal Reserve officials also knocked U.S. equities from their latest march higher and send Treasury yields spiking. The Fed’s meeting minutes released Wednesday afternoon showed central bankers were discussing starting quantitative tightening in the near-term, and that “many participants … would have preferred a 50 basis point increase” in benchmark interest rates at the March meeting.

The meeting minutes reaffirmed other, more recent remarks from monetary policymakers. Federal Reserve Governor Lael Brainard said Tuesday that the Federal Open Market Committee (FOMC) was “prepared to take stronger action” should already elevated indicators of inflation rates and expectations warrant such moves.

Speaking in a webcast, Brainard suggested this could include aggressive interest rate hikes and a much quicker drawdown of the Federal Reserve’s balance sheet — which has thus far ballooned to nearly $9 trillion — than in previous periods.

“Given that the recovery has been considerably stronger and faster than in the previous cycle, I expect the balance sheet to shrink considerably more rapidly than in the previous recovery, with significantly larger caps and a much shorter period to phase in the maximum caps compared with 2017–19,” Brainard said. She noted the process of reducing the Fed’s balance sheet holdings, or beginning quantitative tightening, could begin as soon as the Fed’s next meeting in May.

Other Fed members also suggested they were on board with more policy tightening in the near-term. San Francisco Fed President Mary Daly told the Financial Times on Tuesday that the case for a 50 basis-point interest rate hike — or a hike double the size of the central bank’s typical per-meeting increase — “has grown.”

“The fact is, the Fed has made it very clear … it’s paramount that they go after inflation and do whatever it takes to staunch the rise in inflation,” Quincy Krosby, chief equity strategist for LPL Financial, told Yahoo Finance Live. “They’re going to do it, and I think the market is getting the sense that this is going to be a choppy path.”

“The Fed may go until it breaks something … but it’s clear that this is their mission, and they are going to go ahead with it, full steam – more than 2017, more than 2018,” she added, referring to the last time the Federal Reserve underwent quantitative tightening several years ago.

With inflation rates in the U.S. still holding at around 40-year highs and forcing the Fed’s hand in aggressively tightening financial conditions, some on Wall Street have downgraded their expectations for U.S. and global growth. Deutsche Bank economists said Tuesday they expected the U.S. to tip into a recession at the end of next year as the Fed rapidly hikes rates to address high prices.

“We now expect the U.S. economy to be in outright recession by late next year, and the [Euro area] in a growth recession in 2024 with unemployment edging up,” Deutsche Bank economists David Folkerts-Landau and Peter Hooper said. “Our baseline view is that these developments will spill over to damp growth in much of the rest of the world and at the same time help to bring inflation back toward mandated levels, diminishing the risk of greater disruptions further down the road.”

Still, the economists noted their call for a recession next year “is currently way out of consensus” — and indeed, many on Wall Street still see a slowdown, but not necessarily a period of negative growth in the near-term domestically.

“We’re not thinking that the Fed is going to push the economy into recession,” Veronica Willis, Wells Fargo Investment Institute investment strategy analyst, told Yahoo Finance Live on Tuesday. “I think most are not expecting that. But we are expecting kind of a slowdown in economic growth from what we had expected previously, but still around average economic growth here in the U.S.”

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4:02 p.m. ET: Stocks fall, tech shares lag for a second straight day after more hawkish Fed commentary: Nasdaq declines by 2.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Here were the main moves in markets as of 4:02 p.m. ET:

  • S&P 500 (^GSPC): -43.86 (-0.97{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,481.26

  • Dow (^DJI): -143.95 (-0.42{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,497.23

  • Nasdaq (^IXIC): -315.35 (-2.22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,888.82

  • Crude (CL=F): -$4.65 (-4.56{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $97.31 a barrel

  • Gold (GC=F): +$0.10 (+0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,927.60 per ounce

  • 10-year Treasury (^TNX): +5.3 bps to yield 2.6090{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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2:31 p.m. ET: Stocks extend declines after Fed minutes

Here’s where markets were trading Wednesday afternoon

  • S&P 500 (^GSPC): -50.7 (-1.12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,474.42

  • Dow (^DJI): -226.28 (-0.65{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,414.90

  • Nasdaq (^IXIC): -305.88 (-2.15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,893.13

  • Crude (CL=F): -$5.73 (-5.62{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $96.23 a barrel

  • Gold (GC=F): -$6.30 (-0.33{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,921.20 per ounce

  • 10-year Treasury (^TNX): +5.7 bps to yield 2.611{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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2:09 p.m. ET: Fed offers more details on balance sheet rundown process, saying it will reduce assets ‘in a predictable manner’

The minutes from the Federal Open Market Committee’s March 15 and 16 meeting shed more light on how central bank officials were thinking about beginning the balance sheet runoff process this year.

“Participants reaffirmed that the Federal Reserve’s securities holdings should be reduced over time in a predictable manner,” according to the minutes.

While the Fed has not yet voted on how and when to begin the process of unwinding its balance sheet, some Fed officials suggested this would occur in the near-term. Fed Governor Lael Brainard, once considered a “dove” on the committee, suggested earlier this week the process could be announced as soon as May.

The Fed minutes also noted that, “participants generally agreed that monthly caps of about $60 billion for Treasury securities and about $35 billion for agency MBS [mortgage-backed securities] would likely be appropriate.”

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9:45 a.m. ET: Bitcoin prices dip below $45,000, pulling down crypto-linked stocks

Bitcoin (BTC-USD) prices fell below $45,000 for the first time since last week on Wednesday, bringing shares of cryptocurrency-linked stocks including Coinbase (COIN), Bakkt Holdings (BKKT) and Riot Blockchain (RIOT) lower as well.

Bitcoin prices have been on a roller-coaster ride this year, tracking the volatility across other risk assets as geopolitical and monetary policy concerns increased. Prices began the year around $48,000 for the largest cryptocurrency by market cap, but dipped as low as below $35,000 so far this year.

Other major cryptocurrencies including Ethereum (ETH-USD), XRP (XRP-USD) and Solana (SOL-USD) also dipped Wednesday morning.

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9:39 a.m. ET: JetBlue shares drop after airline makes competing bid for Spirit

JetBlue (JBLU) shares dropped Wednesday morning after the carrier made an offer to purchase Spirit Airlines (SAVE) — less than two months after the budget airline agreed to merge with Frontier Group (ULCC).

JetBlue stepped in with $3.6 billion offer to buy Spirit Airlines, with the all-cash deal coming out to $33 per outstanding Spirit share. The combined company would have a fleet of 450 aircraft with another 312 Airbus aircraft to be delivered over the next six years, and would bring more flights to hubs including New York and Florida, where both airlines already operate.

However, in February, Frontier Group made its own bid to buy Spirit for $2.9 billion, in a deal the companies said at the time would save customers about $1 billion per year. JetBlue said in its press release this morning that its offer was a “superior proposal” and that it would be “more effective than Ultra-Low-Cost Carriers in Introducing Competition and Bringing Down Legacy Carrier Fares.”

Wall Street, however, has expressed skepticism over a JetBlue-Spirit tie-up.

“The merits of a potential JetBlue-Spirit merger are not as abundantly clear to us as are those that could stem from other combinations among remaining, non-Big 3 airlines,” JPMorgan airline analyst Jamie Baker wrote in a note this morning.

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9:31 a.m. ET: Stocks open lower, Treasury yields surge

Here’s where markets were trading Wednesday morning:

  • S&P 500 (^GSPC): -36.19 (-0.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,488.93

  • Dow (^DJI): -229.02 (-0.66{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,412.16

  • Nasdaq (^IXIC): -178.10 (-1.27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,023.64

  • Crude (CL=F): +$0.51 (+0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $102.57 a barrel

  • Gold (GC=F): +$2.20 (+0.11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,929.70 per ounce

  • 10-year Treasury (^TNX): +7.7 bps to yield 2.631{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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8:00 a.m. ET: Mortgage applications fall for fourth straight week as rates rise further

U.S. mortgage applications dropped for a fourth consecutive week into the beginning of April, with fast-rising mortgage rates deterring homeowners from refinancing and new buyers from coming into the market.

The Mortgage Bankers Associations’ weekly index showed mortgage applications fell 6.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} week-on-week during the period ending April 1. This came following a 6.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} drop during the prior week.

Refinances fell 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from the previous week and by 62{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from the same week last year, bringing overall applications for refinances down to the lowest level since spring 2019. Purchases fell 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} week-over-week on a seasonally unadjusted basis, and declined 9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from the comparable period last year.

“Mortgage application volume continues to decline due to rapidly rising mortgage rates, as financial markets expect significantly tighter monetary policy in the coming months. The 30-year fixed mortgage rate increased for the fourth consecutive week to 4.90{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and is now more than 1.5 percentage points higher than a year ago,” Joel Kan, MBA associate vice president of economic and industry forecasting, said in a press statement Wednesday.”

“The hot job market and rapid wage growth continue to support housing demand, despite the surge in rates and swift home-price appreciation,” Kan added. “However, insufficient for-sale inventory is restraining purchase activity.”

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7:16 a.m. ET: Stock futures fall

Here’s where markets were trading Wednesday morning:

  • S&P 500 futures (ES=F): -38 points (-0.84{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,482.25

  • Dow futures (YM=F): -214 points (-0.62{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,336.00

  • Nasdaq futures (NQ=F): -203 points (-1.37{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,625.00

  • Crude (CL=F): +$1.42 (+1.39{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $103.38 a barrel

  • Gold (GC=F): +$4.70 (-0.24{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,922.80 per ounce

  • 10-year Treasury (^TNX): +8.3 bps to yield 2.637{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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6:10 p.m. ET Tuesday: Stock futures edge higher

Here’s where markets were trading Tuesday evening as the overnight session began:

  • S&P 500 futures (ES=F): +5.25 points (+0.12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,525.50

  • Dow futures (YM=F): +34 points (+0.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,584.00

  • Nasdaq futures (NQ=F): +25.75 points (+0.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,853.75

NEW YORK, NEW YORK - MARCH 30: Traders work on the floor of the New York Stock Exchange on March 30, 2022 in New York City. U.S. stocks opened low after rallying to start the week. (Photo by Michael M. Santiago/Getty Images)

NEW YORK, NEW YORK – MARCH 30: Traders work on the floor of the New York Stock Exchange on March 30, 2022 in New York City. U.S. stocks opened low after rallying to start the week. (Photo by Michael M. Santiago/Getty Images)

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter.

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‘Verdict is in’ on modern monetary theory, strategist says

‘Verdict is in’ on modern monetary theory, strategist says

Tick off a decline for the modern day monetary theorists amid mounting inflation, says InfraCap Founder and CEO Jay Hatfield.

Contemporary Financial Theory (MMT) is a macroeconomic lens which prescribes that monetarily sovereign nations like the U.S. are unaffected by economical constraints as long as they control their currencies. With roots relationship back to the early 20th century, MMT was first popularized in its fashionable variety by Warren Mosler, an American expense fund manager.

Beneath MMT, the danger of inflation is regarded negligible as governments that fully handle their fiat currencies are considered to be able to management selling price concentrations, delivered they can satisfy shopper demand from customers.

The past number of months have found inflation skyrocket to 40-year highs, with the most up-to-date purchaser price tag index report displaying an annual rate improve of almost 8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

WASHINGTON DC, USA - MARCH 21: Jerome Powell, Chairman of the U.S. Federal Reserve, speaks during the National Association of Business Economics (NABE) economic policy conference in Washington, D.C, United States on March 21, 2022. (Photo by Yasin Ozturk/Anadolu Agency via Getty Images)

WASHINGTON DC, Usa – MARCH 21: Jerome Powell, Chairman of the U.S. Federal Reserve, speaks all through the National Affiliation of Business Economics (NABE) financial coverage meeting in Washington, D.C, United States on March 21, 2022. (Photograph by Yasin Ozturk/Anadolu Agency through Getty Photos)

“The Fed plan … has been terribly erratic, truly dating back again to when Powell took around and almost created a economic downturn in 2018,” John Kicklighter, chief strategist at DailyFX, told Yahoo Finance Are living. “But the 82{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} improve in the monetary foundation was an experiment to see if we could get absent with, efficiently, modern financial principle. And now the verdict is in. You can not.”

The money source has risen continually because the dawn of the 21st century, but development was accelerated amid the $2.3 trillion and $1.9 trillion stimulus costs passed by President Trump and President Biden, respectively. The Fed increased the M2 monetary foundation from just around $9 trillion in April of 2011, to around $15 trillion in February 2020, to in excess of $21.8 trillion in February 2022, two a long time soon after the begin of the coronavirus pandemic. The M2 foundation is made up of funds in circulation as nicely as shorter-time period time deposits.

“[Increasing the monetary base has created] almost double digit inflation, if you marked rents to industry or housing to market place,” Hatfield additional. “And so they clearly have a difficulty. The only challenge is how substantially persistence [the Fed will] have. We’re optimistic that they’re going to have that endurance.”

Hatfield is part of a camp of economists and financial strategists that watch the country’s ongoing struggles as partly triggered by MMT’s creep into mainstream Federal Reserve policy over the previous pair of several years. The backlash to the financial theory has extended recognized higher inflation and burgeoning deficits as weights on economic very well-becoming.

SAN FRANCISCO, CALIFORNIA - MARCH 31: Shoppers carry shopping while walking through the Union Square shopping district on March 31, 2022 in San Francisco, California. According to a report by the Commerce Department, inflation is taking its toll on the economy with consumer spending inching up a weak 0.2 percent in February compared with a 2.7 percent jump in January. (Photo by Justin Sullivan/Getty Images)

SAN FRANCISCO, CALIFORNIA – MARCH 31: Buyers carry purchasing even though going for walks as a result of the Union Square procuring district on March 31, 2022 in San Francisco, California. According to a report by the Commerce Division, inflation is getting its toll on the economic system with purchaser spending inching up a weak .2 percent in February in contrast with a 2.7 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} jump in January. (Picture by Justin Sullivan/Getty Images)

Even so, a expanding selection of economists help MMT and view the latest historical report as evidence of its good results.

In answering the query ‘has MMT failed?’, “The answer is an unequivocal no,” in accordance to Stephanie Kelton, professor of economics and general public plan at Stony Brook College and one of the foremost industry experts on modern-day monetary concept.

“MMT gives a descriptive framework—a lens—through which to assess fiscal and monetary plan,” she wrote on her web page back in January. The specific procedures taken by sure administrations had been designed beneath a framework which does not regard deficits with the same value as was commonplace even a several decades ago.

“The stage is, you can not blame “MMT” for stoking inflation any extra than you can blame an optometrist if her affected person runs off the highway while driving without the need of wearing their prescription lenses,” she wrote. “MMT does not inform us that the world is an open street, absolutely free of dangers or the need to have for caution. It doesn’t reject fiscal responsibility, it redefines it so that our eyes continue to be centered on the serious limits on spending.”

Ihsaan Fanusie is a writer at Yahoo Finance. Stick to him on Twitter @IFanusie.

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Stock futures dip following tech rally

Stock futures dip following tech rally

U.S. equity futures stumbled in pre-market trading Tuesday after a rally in tech led stocks higher to start the week. Investors are monitoring the war in Ukraine and bracing for the possibility of new sanctions against Russia.

Contracts on the S&P 500, Dow Jones Industrial and Nasdaq Composite were each down roughly 0.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} ahead of the open after all three benchmarks closed in the green Monday. The Nasdaq — which gained 1.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the main session — was buoyed by a 27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} surge in Twitter (TWTR) that came after Tesla (TSLA) CEO Elon Musk revealed he purchased a 9.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} stake in the social media company.

Musk is “speaking with his money by saying that Twitter is an undervalued platform,” MKM Partners’ Rohit Kulkarni told Yahoo Finance Live. “He sees there are things they can do to improve the service, and he’s definitely hinting at a more active role.”

Wedbush Securities analyst and Tesla bull Dan Ives also told Yahoo Finance he predicts Musk will have an active stake in the social media platform over the coming weeks or months, and that his recent snap up of shares was “just the appetizer.”

Separately, Musk’s own company, electric-vehicle giant Tesla, contributed to the gains that propelled a take-off for tech during Monday’s trading session. Shares of the EV carmaker jumped nearly 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after it reported vehicle delivery figures this weekend that came in higher than the same period last year.

Recession jitters were at bay on Monday after a closely-monitored portion of the Treasury yield curve inverted last week and spooked investors over the possibility of an imminent economic contraction. The phenomenon has a history of predicting a recession, with each of the last eight slowdowns dating back to 1969 preceded by a yield curve inversion. As of Monday morning, the yield on the benchmark 10-year note remained below that on the shorter-term 2-year note.

Still, worries about an economic downturn were not completely off the table for strategists.

Nomura Chief U.S. economist Robert Dent told Yahoo Finance Live he sees the potential for a “mild recession”

“We think that the cumulative risk of a recession between now and the end of 2024 stands at about 35{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a},” he said. “A lot of that is just coming from what we think is going to be this very aggressive response from the Fed to actually get inflation under control and make sure the labor market actually cools down.”

Uncertainty around the crisis in Eastern Europe also continues to be a headwind for investors. JPMorgan CEO Jamie Dimon in his widely-read shareholder letter warned that the war in Ukraine is likely to meaningfully slow the U.S. and global economy. In the U.S. specifically, the bank estimates the U.S. economy will grow roughly 2.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, a downgrade from the institution’s initial GDP forecast of 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, with larger cuts to forecasts on Russia and Europe’s economic outlooks.

“We do not know what its outcome ultimately will be, but the hostilities in Ukraine and the sanctions on Russia are already having a substantial economic impact,” said Dimon, adding that “many more” sanctions could be imposed on Russia and spur further unpredictability.

The European Union addressed apparent war crimes in Ukraine on Monday, indicating in a statement that officials would, “work on further sanctions against Russia” over the country’s targeted attacks on civilians. Some major European officials including Germany’s defense minister said they would support banning Russian natural gas — a move previously excluded from sanctions as Russia supplies about 40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of Europe’s gas energy.

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7:50 a.m. ET: US stops Russian bond payments in move aimed to ramp up pressure on Moscow

The United States stopped the Russian government on Monday from paying holders of its sovereign debt more than $600 million from reserves held at U.S. banks in a bid to place pressure on Moscow.

Foreign currency reserves held by the Russian central bank at U.S. financial institutions were frozen on Feb. 24 as part of sanctions placed on Moscow for over its invasion of Ukraine.

The U.S. Treasury Department, however, had been permitting the Russian government to use funds to make coupon payments on dollar-denominated sovereign debt on a case-by-case basis.

On Monday, the U.S. government moved to cut off Moscow’s access to the frozen funds as a $552.4 million principal payment on a maturing bond came due.

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7:10 a.m. ET: Stock futures slip, oil rises following Monday’s tech rally

Here were the main moves in futures trading ahead of Tuesday’s open:

  • S&P 500 futures (ES=F): -10.50 points (-0.23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,567.25

  • Dow futures (YM=F): -83.00 points (-0.24{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,746.00

  • Nasdaq futures (NQ=F): -37.75 points (-0.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,126.50

  • Crude (CL=F): +$1.28 (+1.24{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $104.56 a barrel

  • Gold (GC=F): -$1.70 (-0.09{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,932.30 per ounce

  • 10-year Treasury (^TNX): 0.00 bps to yield 2.4120{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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6:12 p.m. ET Monday: Futures open little changed after stocks close higher

Here’s where markets were trading ahead of the overnight session on Monday:

  • S&P 500 futures (ES=F): -2.25 points (-0.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,575.75

  • Dow futures (YM=F): -14.00 points (-0.04{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,815.00

  • Nasdaq futures (NQ=F): -9.25 points (-0.06{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,155.00

  • Crude (CL=F): +$0.43 (+0.42{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $103.71 a barrel

  • Gold (GC=F): +$3.30 (+0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,937.30 per ounce

  • 10-year Treasury (^TNX): +3.5 bps to yield 2.4120{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Screens display the trading information for Twitter on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., April 4, 2022. REUTERS/Brendan McDermid

Screens display the trading information for Twitter on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., April 4, 2022. REUTERS/Brendan McDermid

—

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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Ex-finance minister wins runoff to be Costa Rica’s president : NPR

Ex-finance minister wins runoff to be Costa Rica’s president : NPR

Noticed by way of a glass window, presidential candidate Rodrigo Chaves reacts right after marking his ballot for the duration of a runoff presidential election, at a polling station, in San Jose, Costa Rica, on Sunday.

Carlos Gonzalez/AP


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Carlos Gonzalez/AP

Observed by way of a glass window, presidential applicant Rodrigo Chaves reacts following marking his ballot in the course of a runoff presidential election, at a polling station, in San Jose, Costa Rica, on Sunday.

Carlos Gonzalez/AP

SAN JOSE, Costa Rica — A former finance minister who stunned several by building it into Costa Rica’s presidential runoff vote has quickly gained that ballot and is to grow to be the Central American country’s new chief upcoming thirty day period, while continue to fending off accusations of sexual harassment when he labored at the Globe Bank.

With virtually all polling stations reporting late Sunday, conservative economist Rodrigo Chaves had 53{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of the vote, compared to 47{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for former President José Figueres Ferrer, the Supreme Electoral Tribunal mentioned.

Much more than 42{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of qualified voters did not participate in Sunday’s election, even so, reflecting the absence of enthusiasm Costa Ricans experienced for the candidates.

In his victory speech, Chaves explained he obtained the final result with humility and referred to as for unity to deal with problems like unemployment and a soaring budget deficit.

“For me this is not a medal nor a trophy, but instead an monumental duty, heaped with worries and complications that we will all solve,” he said.

“Costa Rica, the very best is to arrive!” Chaves explained ahead of celebrating supporters. His inauguration is scheduled for May possibly 8.

Figueres conceded defeat a lot less than an hour following benefits started to occur in. He experienced led the 1st round of voting Feb. 6, with Chaves in 2nd that working day. Neither had come close to the 40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of the vote essential to avoid a runoff.

“Costa Rica has voted and the folks have spoken,” Figueres explained. “As the democrats we are we will often be respectful of that determination.”

He congratulated Chaves and wished him the greatest, incorporating that proceeds to feel that Costa Rica is in a “deep disaster” and he is ready to enable it get better.

Figueres, who was Costa Rica’s president from 1994 to 1998, signifies the Countrywide Liberation Bash like his father, a few-time president José Figueres Ferrer. Chaves served briefly in the administration of outgoing President Carlos Alvarado and signifies the Social Democratic Development Get together.

The two gentlemen waged a bruising marketing campaign that highlighted previous controversies.

Chaves’ campaign is below investigation by electoral authorities for allegedly working an unlawful parallel financing composition. He also has been dogged by a sexual harassment scandal that drove him out of the Entire world Lender.

Although operating at the Planet Financial institution he was accused of sexual harassment by a number of women, was inevitably demoted and then resigned. He has denied the accusations.

The Planet Bank’s administrative Tribunal past year criticized the way the case was initially taken care of internally.

The tribunal pointed out that an inside investigation experienced located that from 2008 to 2013 Chaves leered at, created unwelcome responses about physical look, recurring sexual innuendo and unwelcome sexual innovations toward numerous bank workforce. Individuals details have been repeated by the bank’s human methods division in a letter to Chaves, but it resolved to sanction him for misconduct fairly than sexual harassment.

“The details of the present circumstance reveal that (Chaves’) carry out was sexual in character and that he realized or really should have known that his carry out was unwelcome,” the tribunal wrote. The tribunal also famous that in the proceedings, the banking companies present-day vice president for human assets said in testimony “that the undisputed facts lawfully amount to sexual harassment.”

Much more than 3.5 million Costa Ricans have been qualified to vote, but with a lot of voters underwhelmed by the solutions, turnout was even decrease than the 60{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in February.

Traces shaped just before voting commenced at some polling locations in San Jose, the money, even though other people appeared approximately empty.

Political analyst Francisco Barahona mentioned Costa Ricans’ lack of enthusiasm was the result of the multitude of individual assaults that characterized the campaign.

“In the debates they only heated issues up in private confrontations, mistreatment of just about every other,” he stated. “They did not increase depth to their proposals to solve the country’s complications. The debates did not support to motivate the voters.”

“For a whole lot of men and women it truly is embarrassing to say they voted for a single or the other, and a lot of like to say they will not likely vote for possibly of the candidates or merely is not going to go to vote,” Barahona additional.

Figueres has been questioned over a $900,000 consulting cost he gained right after his presidency from the telecommunication firm Alcatel when it competed for a agreement with the national electricity corporation. He was never ever billed with any criminal offense and denied any wrongdoing.

Whilst Costa Rica has enjoyed relative democratic balance as opposed with other nations around the world in the region, the public has grown pissed off with general public corruption scandals and substantial unemployment.

In the February vote, Alvarado’s party was pretty much erased from the political landscape, obtaining no seats in the new congress. At the time of that very first vote, the region was driving a new wave of COVID-19 infections, but bacterial infections and hospitalizations have fallen noticeably given that.

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Stocks close higher after March jobs report stokes choppy trading session

Stocks close higher after March jobs report stokes choppy trading session

U.S. stocks closed higher Friday to cap a choppy first trading day of April as investors saw a closely-watched recession indicator in the bond market briefly flash red and mulled strong labor market data out of Washington that reaffirmed expectations for more hawkish monetary tightening plans by the Federal Reserve.

The S&P 500 rebounded into the close to rise 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, and the Dow Jones Industrial Average jumped 150 points after both benchmarks struggled for direction during intraday trading. The Nasdaq Composite edged 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} higher, to mark a third week of gains for the tech-heavy index and the S&P 500. Friday’s moves come after Wall Street capped its worst quarter since the start of 2020.

A key part of the part of the U.S. Treasury yield curve briefly inverted Friday morning. The spread, or difference, between the 2-year and 10-year Treasury note yields narrowed and inflected for the third time this week. The phenomenon has a history of predicting a recession, with each of the last eight recessions dating back to 1969 preceded by a yield curve inversion. On Friday, the yield on the 10-year U.S. Treasury bond ended the day at 2.38{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, 6 basis points below the 2-year U.S. Treasury yield of 2.44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

Investors also digested the Labor Department’s monthly jobs report, the most up-to-date snapshot of the strength in hiring across the U.S. economy. Employers added 431,000 jobs in March, below Bloomberg consensus economist estimates of a 490,000 rise in non-farm payrolls. The latest figure reflected a slowdown from February’s 678,000 gain but still marked an increase well above pre-pandemic trends and underscored the likelihood Fed policymakers will raise interest rates more aggressively in coming months than initially expected.

Meanwhile, West Texas Intermediate (WTI) crude oil fell $14 to dip below $100 per barrel in its biggest weekly dollar loss since 2011. U.S.-allied countries in the International Energy Agency (IEA) on Friday agreed to their second coordinated deployment of oil stockpiles in a month to calm Russia-Ukraine war-roiled energy markets, one day after President Biden unveiled plans for the largest ever release from the U.S. Strategic Petroleum Reserve. The U.S. is expected to deploy 1 million barrels of oil a day from its emergency supply for the next six months starting.

Stocks kicked off April higher after the S&P 500 and Dow each dropped more than 4.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for the first three months of 2022, closing out their worst quarters — and first quarterly declines — since Q1 2020. The Nasdaq Composite saw the biggest loss, shedding 9.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over the past three-month period as investors rotated away from the technology and growth stocks that had led the market higher last year.

Despite day-to-day choppiness, stocks staged a solid comeback in the second half of March as the S&P rallied to climb more than 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} off its year-to-date low. Market-watchers have attributed the resurgence to optimism around the possibility of a peace negotiation between Russia and Ukraine, and to investors adjusting to the Fed’s liftoff on interest rates. However, LPL Financial points out that corporate profits may be another component driving the latest rebound.

Even in the face of war in Eastern Europe and decades-high inflation, earnings have been holding up, and estimates for S&P 500 Index earnings per share over the next four quarters are higher in March. Although not by much at 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, the positive forecast is significant under the circumstances – particularly compared to how other countries have fared. Inflation is driving the more sizable corporate profits as companies enjoy more pricing power as they pass along higher costs to customers.

“On the back of energy independence, the trajectory of U.S. corporate profits has been unaffected by rising energy costs and high inflation so far,” LPL Financial equity strategist Jeffrey Buchbinder noted, adding that conversely, earnings expectations in international markets have fallen in March. “The U.S. profit outlook is the envy of the world right now.”

Also on the companies front, meme-stock favorite GameStop revealed in a form 8-K filed with the SEC after the bell Thursday that the video-game retailer will seek approval for a stock split at its upcoming shareholder meeting. GME is following a growing list of major companies — Alphabet, Amazon, Tesla — it what could be the “summer of stock splits.” Stock splits are a corporate action taken to improve trading liquidity and make shares more affordable without impacting market capitalization. GME was up 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to about $176.43 as if 11:55 a.m. ET during intraday trading Friday.

April has historically been a strong month for stocks, and has in fact produced a positive return for the S&P 500 in 15 of the last 16 years, according to LPL Financial’s Ryan Detrick. This time, however, stocks are facing a variety of headwinds that may upend this historically positive seasonality.

Namely, a confluence of concerns around the geopolitical and macroeconomic backdrop contributed to stocks’ worst quarterly performance in two years, and have yet to be fully resolved. Geopolitical risks have been elevated since Russia’s invasion of Ukraine in late February, raising the specter of further snarls to global supply chains that have already been struggling to recover from pandemic-era disruptions. A broad-based spike in prices, and in oil and energy prices especially, has further stoked concerns over the resilience of the consumer — the key driver of the domestic economy — going forward. And the Federal Reserve has begun a protracted process of raising interest rates and tightening financial conditions in a market that had grown accustomed to easy monetary policy since 2020.

“I think investors are very happy that the quarter is over. It was a tough one. Obviously inflation was bad all the way until … the end of the quarter,” Robert Cantwell, Upholdings portfolio manager, told Yahoo Finance Live on Thursday. “And in all likelihood, the next four to six weeks, it’s likely going to continue to be bad news because inflation is persistent, and we’re still comping record growth rates from the first four months of last year.”

“That said, as you get to the second half of next quarter, you could see a scenario where growth rates start accelerating again while inflation tempers, and that has the potential to bring a lot of the bulls back into the market,” he added.

—

4:00 p.m. ET: Stocks bounce back after chopping intraday trading

Here’s how stocks ended the first trading day of April:

  • S&P 500 (^GSPC): +15.40 (+0.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,545.81

  • Dow (^DJI): +139.85 (+0.40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,818.20

  • Nasdaq (^IXIC): +40.98 (+0.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,261.50

  • Crude (CL=F): -$0.71 (-0.71{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $99.57 a barrel

  • Gold (GC=F): -$26.90 (-1.38{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,922.30 per ounce

  • 10-year Treasury (^TNX): +5 bps to yield 2.3770{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

12:42 a.m. ET: S&P 500 on pace for weekly loss after erasing earlier gains

Here were the main moves in markets as of 12:42 p.m. ET:

  • S&P 500 (^GSPC): -15.47 (-0.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,514.94

  • Dow (^DJI): -80.99 (-0.23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,597.36

  • Nasdaq (^IXIC): -62.95 (-0.44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,157.57

  • Crude (CL=F): -$1.19 (-1.19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $99.09 a barrel

  • Gold (GC=F): -$26.50 (-1.36{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,927.50 per ounce

  • 10-year Treasury (^TNX): +5.7 bps to yield 2.3840{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

12:28 a.m. ET: Amazon workers in New York win first US union in company’s history

Employees at Amazon’s (AMZN) warehouse on Staten Island narrowly won a historic union election on Friday to establish the first U.S. union in the company’s nearly 30-year history.

As of early Friday afternoon, the union was poised for victory with a margin of nearly 500 votes. The National Labor Relations board said that the union and Amazon had challenged 66 ballots, suggesting that the margin of victory would exceed the number of contested ballots and conclude the election without further dispute.

“A win is potentially world-changing,” Erik Loomis, a labor historian and professor at the University of Rhode Island, told Yahoo Finance prior to the vote. “It would set a precedent that there is a big demand out there to organize this new economy.”

The move also stands to intensify a nationwide surge of organizing across major companies like Starbucks (SBUX) and Disney (DIS).

Amazon JFK8 distribution center union organizer Jason Anthony speaks to the press about preliminary results regarding the vote to unionize, outside the NLRB offices in Brooklyn, New York City, U.S., April 1, 2022. REUTERS/Brendan McDermid

Amazon JFK8 distribution center union organizer Jason Anthony speaks to the press about preliminary results regarding the vote to unionize, outside the NLRB offices in Brooklyn, New York City, U.S., April 1, 2022. REUTERS/Brendan McDermid

—

12:19 a.m. ET: US allies to follow suit on Biden’s oil-stock release

U.S.-allied countries in the International Energy Agency (IEA) agreed to their second coordinated deployment of oil stockpiles in a month to calm Russia-Ukraine war-roiled energy markets, one day after President Biden unveiled plans for the largest ever release from the U.S. Strategic Petroleum Reserve.

The timing and volumes of the releases from each country will be decided at a later date, Japan’s industry ministry said.

A month ago, IEA members agreed on a 61.7-million barrel release, with 30 million coming from the U.S. and 2.2 million from the U.K, though the move had minimal impact on prices as turmoil in Eastern Europe threatened to trigger one of the biggest oil-supply disruptions in history.

“This is a moment of consequence and peril for the world, and pain at the pump for American families,” Biden said at an event at the White House Thursday.

“Our prices are rising because of Russian President Vladimir Putin’s actions,” he said. There isn’t enough supply, and the bottom line is if we want lower gas prices we need to have more oil supply right now.”

—

11:18 a.m. ET: General Motors stock falls after carmaker reports decline in Q1 deliveries

Shares of General Motors (GM) dipped after the automaker reported its U.S. deliveries fell 20.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the first quarter to 512,846, dragged down by Buick deliveries which more than halved.

GM was down 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $43.10 per share as of 11:16 a.m. ET.

“Supply chain disruptions are not fully behind us, but we expect to continue outperforming 2021 production levels, especially in the second half of the year,” the carmaker said Friday.

General Motors also indicated the company expects inventory to remain “relatively low throughout the year due to high demand.”

—

11:02 a.m. ET: JPMorgan ditches Apple, Qualcomm from top picks list

JPMorgan dropped iPhone giant Apple (AAPL) and chipmaker Qualcomm (QCOM) from the brokerage’s “Analyst Focus List,” indicating slowing demand for smartphones is expected to put a dent in the companies’ growth.

The move comes as analysts warned that another wave of COVID lockdowns in China and higher prices on goods are likely to weigh on demand this year.

“There has been understandably a lot of noise around demand weakness across global tech, but we believe the macro weakness seeping through the sector will impact the consumer end-markets more materially,” JPMorgan analyst Samik Chatterjee said.

Apple already reportedly has plans to limit production on some iPhones and its AirPods due to a decrease in demand.

Shares of the tech giant were down 0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} as of 11:01 a.m. ET to $173.75 a piece. Qualcomm fell 3.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $147.12 per share.

—

9:30 a.m. ET: Stocks open higher following March jobs report

Here were the main moves in markets at Friday’s open:

  • S&P 500 (^GSPC): +12.54 (+0.28{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,542.95

  • Dow (^DJI): +74.62 (+0.22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,752.97

  • Nasdaq (^IXIC): +70.78 (+0.50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,291.30

  • Crude (CL=F): -$1.01 (-1.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $99.27 a barrel

  • Gold (GC=F): -$23.10 (-1.18{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,930.90 per ounce

  • 10-year Treasury (^TNX): +9.9 bps to yield 2.4260{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

8:30 a.m. ET: Payrolls rise by 431,000 as unemployment rate falls to 3.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

The U.S. economy notched another sizable payroll gain in March as the labor market extending its strong and speedy recovery to bring employment back to pre-pandemic levels. U.S. employers added 431,000 jobs, lower than the expected 490,000 jobs.

Meanwhile, the unemployment rate dropped a more-than-expected two-tenths of one percent, edging closer to the historic low of 3.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} seen in February 2020, Bankrate senior economic analyst Mark Hamrick noted, though pointing out that the labor force participation rate remains 1 percentage point below its pre-pandemic level.

The labor force participation ticked up slightly to 62.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after an unexpected jump to 62.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in last month’s data signaled more individuals were returning to look for work or be placed in jobs after being sidelined by COVID-19.

“Beyond the positive March snapshot, the outlook for the next year is for further moderation in jobs creation,” Hamrick said in a note. “Emboldened by exorbitantly high inflation, a hawkish Federal Reserve feels compelled to slam on the brakes. It is hard to imagine how tightening doesn’t ultimately affect the job market.”

—

7:14 a.m. ET: Futures charge higher to kick off April trading

Here were the main moves in futures trading ahead of the open Friday:

  • S&P 500 futures (ES=F): +22.00 points (+0.49{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,552.75

  • Dow futures (YM=F): +172.00 points (+0.50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,790.00

  • Nasdaq futures (NQ=F): +80.00points (+0.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,948.75

  • Crude (CL=F): +$0.14 (+0.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $100.14 a barrel

  • Gold (GC=F): -$21.90 (-1.12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,932.10 per ounce

  • 10-year Treasury (^TNX): 0.00 bps to yield 2.3270{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

6:24 p.m. ET Thursday: GameStop surges to 4-month high after filing stock split plans

GameStop (GME) shares rallied in extended trading following an announcement after the bell indicating the video-game retailer plans to seek approval for a stock split.

The meme-stock favorite rallied as much as 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in extended trading to a 4-month high of more than $200 per share following the news.

The company said in an 8-K SEC filing it plans to request stockholder approval at its upcoming annual shareholder meeting to increase the number of authorized Class A shares from 300 million to 1 billion in order to implement the split through a dividend.

With GME following suit on a growing list of companies recently reporting similar plans – Alphabet, Amazon, Tesla – it could be the “summer of stock splits.” Stock splits are a corporate action taken to improve trading liquidity and make shares more affordable, without impacting market capitalization.

—

6:10 p.m. ET Thursday: Futures tick up slightly ahead of first April trading day

Here’s where the major stock index futures opened heading into the overnight session Thursday:

  • S&P 500 futures (ES=F): +12.25 points (+0.27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,543.00

  • Dow futures (YM=F): +96.00 points (+0.28{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,714.00

  • Nasdaq futures (NQ=F): +49.75 points (+0.33{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,918.50

  • Crude (CL=F): +$1.04 (+1.04{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $101.32 a barrel

  • Gold (GC=F): -$12.20 (-0.62{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,941.80 per ounce

  • 10-year Treasury (^TNX): -3.1 bps to yield 2.3270{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

NEW YORK, NEW YORK - MARCH 28: Traders work on the floor of the New York Stock Exchange (NYSE) on March 28, 2022 in New York City. Following a positive week for stocks, the Dow Industrial Average was down over 100 points in morning trading. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – MARCH 28: Traders work on the floor of the New York Stock Exchange (NYSE) on March 28, 2022 in New York City. Following a positive week for stocks, the Dow Industrial Average was down over 100 points in morning trading. (Photo by Spencer Platt/Getty Images)

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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter.

—

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter.

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Hospital operating margins continued to struggle during first quarter

Hospital operating margins continued to struggle during first quarter

Image: SolStock/Getty Pictures

Working margins at hospitals and health methods have been strike really hard by the pandemic, and the Omicron surge was an added setback as the healthcare sector ongoing to struggle at the commencing of the yr.

The effects of the Omicron variant has been palpable, as median running margins remained in the crimson for a next straight thirty day period in February, and most organizations saw declines in margins, revenues and inpatient volumes, in accordance to the most recent Kaufman Hall Flash report.

The median Kaufman Hall Operating Margin Index reflecting real margins for the month was -3.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, up from -4.52{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in January but even now perfectly under sustainable concentrations. Restoration from the Omicron surge is probable to be gradual, and there could be added setbacks forward if other variants, these as the Omicron subvariant BA.2, direct to long term surges.

The improvement in median margin was pushed by disproportionate raises amid hospitals that saw margin gains in February when compared to hospitals that experienced margin declines. Even so, most U.S. hospitals claimed margin declines for the month.

The median modify in operating margin was down 11.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from January to February, and the median change in Operating EBITDA Margin lowered 7.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} thirty day period-over-thirty day period. 

12 months-over-year, the median alter in working margin was down 26.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and the median change in functioning EBITDA margin declined 24.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Median margin alterations were being the most spectacular in comparison to just right before the begin of the pandemic, with working margin down 42.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and running EBITDA margin down 37.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} vs. February 2020.

What’s THE Influence

In conditions of volumes, outpatient volumes were being gradual to get well in February, even though inpatient volumes lowered with the fall in COVID-19 hospitalizations. Client days were down 13.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} thirty day period-in excess of-thirty day period and 4.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} as opposed to February 2020. Modified client times decreased 7.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from January to February and 4.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} vs. February 2020.

Fewer seriously unwell COVID-19 people also contributed to shorter medical center stays. Regular Length of Stay (LOS) dropped 5.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} month-above-month, but rose 3.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} YOY and 12.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} vs. the exact same thirty day period in 2020.

Operation volumes observed moderate improves, as some people returned for nonurgent procedures that have been delayed during the Omicron surge.

Lousy volume functionality led to month-above-thirty day period income declines in February. Gross working income was down 7.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and outpatient earnings dropped 5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from January ranges. Inpatient earnings experienced the major reduce, down 19.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} adhering to a practically 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} boost the prior month because of to January’s spike in COVID-related hospitalizations.

Clinic bills noticed advancements month-about-thirty day period as hospitals bought some aid following the powerful calls for of the Omicron surge. Total cost per adjusted discharge was down 4.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, Labor price for each adjusted discharge lowered 6.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, and non-labor expenditure for every altered discharge dropped 3.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from January to February.

Common labor shortages and ongoing source chain problems continued to generate up calendar year-more than-calendar year modified charges. Whole price per modified discharge rose 10.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} as opposed to February 2021 and 30.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} vs. February 2020.

Labor cost for each altered discharge was up 15.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} 12 months-around-12 months vs. 2021 and 32{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} compared to February 2020. Staffing degrees declined after once again, highlighting the affect of labor scarcity wage pressures in pushing up over-all labor expenses. Entire-Time Equivalents (FTEs) for every altered occupied mattress dropped 2.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} thirty day period-in excess of-thirty day period, 4.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} yr-above-year, and were being flat vs. February 2020. 

Non-labor charges for each altered discharge rose 8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} as opposed to February 2021 and 25.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} vs. February 2020. Drug cost per altered discharge experienced the largest maximize of any cost metric compared to pre-pandemic levels at 40.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

THE Greater Trend

Some of these tendencies were foreshadowed by a November 2021 report from Fitch Ratings demonstrating that labor shortages and supply chain issues are a rising menace to gain margins.

Various things are contributing to labor pressures, such as team burnouts prompted by the enduring COVID-19 pandemic and an overall scarcity of capable enable, which has resulted in larger prices to employ short term personnel, as properly as wage inflation.
 
Additionally, the report observed that deficiency of employees is forcing some in-patient behavioral health and senior housing operators to decreased admission costs.

Supply chain troubles are also incorporating strain to financial gain margins, predominantly due to higher transportation expenditures incurred by distributors. The professional medical device subsector is also becoming impacted by the international shortage of semiconductors wanted for their production procedures.
 

Twitter: @JELagasse
E-mail the author: jeff.lagasse@himssmedia.com