The decline in the U.S. stock market on Friday was broad, but moderate as tensions between the United States and China, as well as the upcoming press conference hosted by President Trump, eased a strong week. The Dow and S&P 500 are on track to end the week up 3.2% and 2%, respectively.
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11am: Powell is set to speak
Federal Reserve Chairman Jerome Powell is set to speak at 11 am ET shortly at a Princeton University event with Alan Blinder, former Fed vice chairman. Investors will wash through Powell’s comments for clues about where the economy stands in the wake of the coronavirus pandemic and the steps the Fed can take to further support the economy.
Click here to watch. —Imbert
10:51 am: Cramer says without further coronavirus stimulus the stock market rally could run out of steam
The stock market run-up from its March lows could “spit out” without more coronavirus economic stimulation from Congress, CNBC’s Jim Cramer said. “I’m worried,” the host of “Mad Money” added, warning that the record of high unemployment will “eventually hit the market.” Earlier this month, House Democrats passed another massive relief package. However, the $ 3 trillion bill has become a nonstarter to the GOP-led coalition. Cramer said another round of stimulus could act as a “bridge” to a Covid-19 vaccine so more businesses wouldn’t have to close. –Stankiewicz
10:49 am: NYSE decliners lead advisers 2-1
About two stocks lowered for ever backers on the New York Stock Exchange on Friday as investors looked forward to a key news conference from President Donald Trump. Overall, 1,864 stocks traded on the NYSE while approximately 900 were advanced, FactSet data show. –Imbert
10:25 am: Twitter flags tweet Trump for ‘glorifying violence’
Flag Twitter tweeted from President Donald Trump for violating company guidelines on “glorifying violence.” The move comes after media giant-fact-checked Trump earlier this week for a tweet about mail-in ballots and voter fraud. Trump then targeted social media companies with an executive order aimed at breaking the “censorship” of social media companies. Shares on Twitter fell 2.6%. – Imbert
10:00: Consumer sentiment rose to 72.3 in May, but failed to meet forecasts
The University of Michigan said Friday that its consumer sentiment index rose to 72.3 in May from 71.8 in April. Although the print suggests that Americans are feeling slightly more optimistic this month than they did in April, the figure fails to meet what Dow Jones economists expect, a reading of 74. The Americans remain historically conservative with their personal income given the ongoing Covid- 19 concerns and government rules that contain its spread, but some may feel somewhat optimistic that some states has begun to ease restrictions on business closure in recent weeks. – Franck
9:57 am: Here’s Friday’s biggest analyst call: Lululemon, Bloomin Brands, Slack and more
- Raymond James raised the price target on Lululemon to a Street high of $ 335 from $ 250.
- Jefferies has upgraded Bloomin ‘Brands to buy from the hold.
- Stephens raised the target price on Slack to $ 37 from $ 32.
- Baird started Waste Management as an outperform.
- Credit Suisse started S&P Global and Moody as an outperform.
- Argus lowered VF Corp to prevent it from buying.
- Cowen throws Halliburton into the market from the outperform.
Read More Pro Subscribers: https://www.cnbc.com/2020/05/29/fridays-biggest-calls-lululemon-bloomin-brands-slack-more.html – Bloom
9:50 am: Energy and financial lag, tech and healthcare are out of the middle of the United States
Stocks with high exposure to global markets did not indicate the key 20-minute indexes on Friday’s regular trading as tensions between the United States and China kept investors safe. such as tech and healthcare. Boeing and Caterpillar, which both earn a significant portion of their revenues overseas, have the lowest pressure on the Dow with declines of 2.1% and 1.6%, respectively. Microsoft and UnitedHealth added the most upside, but failed to fully reduce the Dow’s fall by about 60 points. – Franck
9:30 am: Stocks open lower as traders await China’s briefing
US stocks opened lower on Friday with the Dow Jones Industrial Average down 140 points and the S&P 500 losing 0.35%. The Nasdaq Composite is the sole earner among the three indexes, up a hair above the flatline. Traders cited tensions in the United States of China, as well as an expected press briefing on the matter by President Donald Trump, for sale last week. The president is expected to condemn some of Beijing’s recent actions, including its handling of the Covid-19 outbreak, disruption of the Hong Kong government and treatment of Muslim minority groups. – Franck
9:25 am: Kudlow said in an interview that the US government is ‘furious’ with China
President Donald Trump’s top economic advisor Larry Kudlow said in an interview Friday morning that the U.S. government was “furious” over the way China has behaved in recent weeks over its handling of the explosion of coronavirus and its disruption to Hong Kong autonomy. “As for Hong Kong, China is now in breach of a 50-year agreement,” Kudlow told Fox News Channel from the White House. “Frankly, the US government … I will use the word rage over what China has done in recent days, weeks and months. West. “
Trump is expected to host a press conference later Friday to condemn Beijing’s recent behavior. – Franck
9:23 am: US rescue rate is recording high amid the coronavirus crisis
Americans are saving more than ever before because the coronavirus fears the United States about the future of the economy. Personal savings rates hit a historic 33% in April, the U.S. Bureau of Economic Analysis said Friday. The rate represents how much people can save as a percentage of their income thrown away. April’s print has been at its highest since the department began tracking in 1960, and surpassed consumer savings when the US was embroiled in a financial crisis. The increase in savings came as spending declined by a record 13.6% for the month. The deadly virus, which has caused more than 40 million Americans to file for unemployment, has paralyzed consumer spending habits. – Fitzgerald
8:48 am: Company raises $ 1 trillion in debt issuance
The release of corporate debt exceeds $ 1 trillion as companies borrow money at double the pace of last year as the Federal Reserve moves to backstop the corporate credit market amid the coronavirus pandemic. Of the $ 1.038 trillion in new issuance, more than $ 7 billion of new debt has been launched since the Fed announced it would support the corporate bond market. –Imbert, Domm
8:43 am: United States personal spending of plummets 13.6% in April
8:30 am: Citi: Stock market rally driven by short cover
The S&P 500 has grown more than 30% since breaking a low intraday on March 23. However, Citi strategists believe the gains are a work of investors occupying short positions. The strategists point out that equity prices have risen despite $ 120 billion in cuts from stock funds. “From this, a move higher will require new desires and flows,” they said in a note. –Imbert, Bloom
8:09 am: Slell speaks for a conversation with former Fed vice president Alan Blinder
Federal Reserve Administrator Jerome Powell is set to speak Friday at The Griswold Center for Economic Policy Studies at Princeton University. The event, which took place around 11 a.m. ET, was moderated by Alan Blinder, former Fed vice chairman under Bill Clinton. The focus of the statement was likely on the economy and the central bank’s stimulus measures during the coronavirus crisis. Powell will also participate in a moderated question and answer session. Earlier this month, Powell said policy makers could use additional tools to pull the country out of an economic downturn that has caused “a level of pain that is difficult to grasp.” –Mr. Li
8:02 am: Raymond James becomes Lululemon’s biggest bull
Shares of athlete retailers tched into premarket trading Friday after Raymond James hit a price target on the highest on Wall Street. Raymond James, who has a buy rating in Lululemon, raised a 12-month target of $ 335 per share from $ 250 per share. The new target indicates a near 18% rally from Thursday’s closing price of $ 284.42 per share. The firm said the yoga pants manufacturer remains the top ideas for long-term, secular winners in a retail trade characterized by a growing gap between winners and losers. “We believe LULU’s dominance in the growing athletic apparel market will continue to increase as its innovative machine continues to deliver exciting and unique products to its loyal customer base,” Raymond James retail analyst told Matthew McClintock in a note to clients. Raymond James has added fiscal first quarter results for 2020, but the numbers still represent major declines since 2019. “The central takeaway here is that the near-term decline in revenues is transitory and, more All in all, the current crisis has only accelerated LULU’s favorable position. As a leader in the athletic apparel market, “McClintock added. Shares of Lululemon rose 0.6% during the 1st quarter. – Fitzgerald
8 am: Oil on track for best month on record after gaining over 70%
Oil moved lower on Friday, but for the month of West Texas Intermediate, the U.S. benchmark, is on track to register more than 70% gain for the best month on its record. After falling on record lows in April, an uptick in demand as well as historic supply cuts pushed prices higher. But prices are still far from recent highs. On Friday, WTI traded nearly $ 33 per barrel, or about 50% below this January’s high of $ 65.65 per barrel. “It certainly doesn’t feel like the best oil month ever,” said Regina Mayor, KPMG’s global energy leader. “The low $ 30s for WTI were clearly better than where we were at the end of April, but it was not enough to bring back the volume of labor online,” he added. –Stevens
7:23 am: Stock futures fall as Trump news conference lasts
Stock futures plummeted slightly Friday morning as traders await a news conference from President Donald Trump on China. Dow fut Industrial Average futures gained 70 points, or 0.3%. S&P 500 and Nasdaq 100 futures both fell 0.1%. Trump announced that he would hold a news conference late in Thursday’s session, lowering equity prices for the day. The news conference comes after China approved a controversial national security bill earlier this week.Determining the decline in futures, Wall Street is headed for solid weekly gains. The Dow and S&P 500 were up 3.8% and 2.5%, respectively, for the week while the Nasdaq Composite gained 0.5%. –Imbert
– Reporting from Yun Li, Thomas Franck, Michael Bloom, Patti Domm and Kevin Stankiewicz.
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