5 things to know before the stock market opens on Thursday

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

1. Futures are mostly flat after Wednesday’s declines.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, on June 3, 2022.

Brendan McDermid | Reuters

US stock futures were virtually flat on Thursday, as the key release of May’s inflation data, scheduled for Friday, comes into even more focus. Traders are also monitoring the Latest decision on interest rates of the European Central Bank Thursday. Wall Street closed lower across the board a day earlier. the S&P 500 fell 1.08% on Wednesday, while the Dow Jones Industrial Average Y Nasdaq Composite lost 0.81% and 0.73%, respectively. The only sector in the S&P 500 to finish Wednesday was energy, closing at its highest point in nearly eight years.

All three major US stock indices snapped two-day gain streaks on Wednesday as investors continued to watch the bond market and seek new information on the trajectory of economic growth. The Dow is now essentially flat for the week and nearly 11% below its all-time high. The S&P 500 is up 0.18% weekly to date and 14.6% since its peak in early January. The Nasdaq is solidly in the green for the week, up 0.61%. However, the tech-heavy index is still entrenched in a bear market, more than 25% down from its all-time high in November.

2. 10-year yield trades above 3%; basically flat oil

Performance in the benchmark 10-year Treasury note it remained above 3% on Thursday morning, after jumping above that psychological level on Wednesday. US government bond prices, which move inversely to yields, have trended lower this week. The yield on the 10-year Treasury bond ended last week at 2.941% and, at the end of May, was around 2.71%. Equity investors have closely watched bond yields rise in 2022 as higher interest rates typically pressure growth-oriented tech stocks that have significant cash flows projected in future years.

Oil prices were basically flat on Thursday. US benchmark West Texas Intermediate crude declined about 0.2% to around $121.90 a barrel. Brent crude, the international benchmark, was trading at $123.48 a barrel, right where it ended on Wednesday as WTI and Brent hit their highest levels in two months. The recent spike in oil prices came as China’s Covid reopening is expected to spur higher demand while supply concerns persist elsewhere.

3. Tesla shares jump after UBS update

A Tesla store in Shanghai, China, on February 1, 2022.

cost photo | Future publications | fake images

Actions of Tesla rose 3.5% in premarket trading on Thursday as UBS upgraded the electric vehicle maker to a buyout. Tesla shares have struggled this year, down more than 30% year-to-date as of Wednesday’s close. Despite that sharp pullback, UBS wrote to clients that it was “time to be bold” with the stock, adding that the company’s future is still very bright. Tesla’s premarket gains come after shares rose 1.25% on Wednesday in an otherwise negative day for the S&P 500. Tesla has the sixth-largest weight in the S&P 500.

4. Target increases quarterly dividend

A person walks into a Target store in Washington, DC, on May 18, 2022.

Stefani Reynolds | AFP | fake images

Goal said on Thursday that its board approved an increase in its dividend. The quarterly pay will increase 20% to $1.08 per common share, up from its previous level of 90 cents. The Minneapolis-based retailer is a member of the S&P 500 Dividend Aristocrats Index, made up of companies that have increased their dividends annually for the last 25 years; Target said that 2022 will now be the 51st year in a row that it has done so. Target’s Thursday announcement comes two days after the company warned that its second quarter tax benefit would be reduced as it took aggressive steps to get rid of excess inventory. Shares of Target, down more than 30% so far this year, were up 0.76% in premarket trading.

5. Apple subsidiary will extend loans for its Pay Later service

The Apple website is displayed on a laptop screen and the Apple logo is displayed on a phone in this photo illustration.

Jakub Porzycki | Nurfoto | fake images

Apple intends to use a wholly owned subsidiary to check credit and provide short-term installment loans to users of its new Buy Now, Pay Later service. The iPhone maker announced the new offering Monday as it kicked off its developer conference; It will be called Apple Pay Later and will be available later this year, when the new iOS 16 software for iPhone is released.

Additional details about Apple Pay Later reflect the tech giant’s ambitions in the fintech industry. While Goldman Sachs participates as a technical issuer for loans made through Apple Pay Later, it should be noted that Apple does indeed keep credit decisions in-house and uses its balance to issue loans. Buy now, pay later has become increasingly popular in recent years. Startups like Affirm made waves big enough to establish fintech companies like parent Square. Block reached agreements to buy existing players, while PayPal launched its own offer.

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