Here are the top news, trends and analysis investors need to start their trading day:
1. Futures mixed after Fed’s Powell beat markets for a loop
Pedestrians walk past the NASDAQ MarketSite in New York’s Times Square.
Eric Thaler | Reuters
US stock futures were mixed on Friday, a day after an afternoon market sell-off on hawkish comments from Federal Reserve Chair Jerome Powell that erased strong morning gains. Rising bond yields, which continued Friday, hit the Nasdaq particularly hard on Thursday, with the tech-heavy index falling 2% in a second straight session of big losses. The Nasdaq remained in a sharp correction and was near bear market territory, defined by a decline of 20% or more from recent highs. The index last closed with a record in November.
2. Bond yields rise as a hawkish Powell confirms recent Fed chatter
Federal Reserve Chairman Jerome Powell attends the National Association of Business Economics Economic Policy Conference in Washington, DC, on March 21, 2022.
Yasin Öztürk | Anadolu Agency | Getty Images
The benchmark 10-year Treasury yield approached 3% on Friday as the short end of the yield curve saw the 5-year top of that level, as Powell confirmed what many other Fed officials have been saying lately that interest rates pace may need to be increased more to combat inflation. During an International Monetary Fund panel on Thursday, moderated by CNBC’s Sara Eisen, the Fed Chair said “50 basis points will be on the table for the May meeting.” The central bank hiked interest rates by 25 basis points at its March meeting, the first hike in more than three years. The market expects rate increases at each of the remaining six meetings in 2022.
3. Gap stocks fall after trimming prospects, Old Navy directs exit
Traffic passes Old Navy and GAP stores in Times Square on March 1, 2019 in New York City.
Drew Angerer | Getty Images
Shares of Gap fell about 15% premarket on Friday, the morning after the clothing retailer lowered its growth outlook on increased competition and more promotions. The company also announced that Old Navy division CEO Nancy Green is leaving her post. In addition to Old Navy and the brand of the same name, Gap is also behind the lines Banana Republic and Athleta. Gap said it will provide an updated fiscal 2022 outlook when it releases quarterly results, which are scheduled for May 26.
4. CNN+ will close on April 30, just a month after launch
A Jeep Wrangler Rubicon sits on an outside track during the press preview of the International Auto Show at the Jacob Javits Convention Center in New York City on April 13, 2022.
Timothy A Clary | AFP | Getty Images
Warner Bros. Discovery is shutting down CNN+ at the end of the month, just weeks after the standalone streaming news service launched. The company said customers will receive prorated refunds for subscription fees. CNN+ had fewer than 10,000 daily active viewers in the two weeks following its launch. The service was launched just before AT&T’s then-WarnerMedia unit and Discovery completed their April 8 merger. Warner Bros. Discovery hasn’t officially spelled out its streaming ambitions just yet, but as CNBC previously reported, the goal is to combine HBO Max and Discovery+ with WarnerMedia’s other programming.
5. Florida Republicans vote to disband Disney Special District
Disney employee Nicholas Maldonado holds a sign while protesting in front of Walt Disney World on March 22, 2022 in Orlando, Florida. Employees are staging a company-wide walkout today to protest Walt Disney Co.’s response to controversial Florida law known as the “Don’t Say Gay” law.
Octavio Jones | News from Getty Images | Getty Images
Florida’s Republican-led Legislature has passed a bill — and sent it to Gov. Ron DeSantis — aimed at dissolving a special district that would allow The Walt Disney Co. to self-relocate within the outer borders of Orange and Osceola counties administer. DeSantis, widely viewed as a contender for the 2024 GOP presidential nomination, is embroiled in a bitter feud with Disney over the entertainment giant’s condemnation of Florida’s so-called Don’t Say Gay law, which bans early childhood education about sexual orientation or gender identity restricts.
— CNBC’s Yun Li, Jeff Cox, Peter Schacknow, Lauren Thomas, Alex Scherman and Sarah Witten contributed to this report.
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https://www.cnbc.com/2022/04/22/5-things-to-know-before-the-stock-market-opens-friday-april-22.html 5 things you should know before the stock market on Friday, March 22