Here are the most important things for people who invest to know at the start of their trading day:
1. Bond Yield Increase
On Monday morning, U.S. stock futures fell because the 10-year Treasury note’s interest rate rose above 5%. This is the first time it’s been this high since 2007. Whether stocks recover from a bad week depends on earnings and inflation data.
Last week, the Dow Jones Industrial Average went down by 1.6%, the S&P 500 dropped by 2.4%, and the Nasdaq Composite fell by 3.2%. We can expect some major earnings reports from Tuesday to Thursday.
On Friday, the personal consumption expenditures data will give us hints about whether the Federal Reserve plans to increase interest rates again this year.
2. Tech Wave
This week, the technology industry, which has been a big reason for the stock market’s growth this year, will be in the spotlight as they release their earnings. We’ll also see important reports from the transportation and food and beverage sectors.
Investors will pay close attention to how General Motors and Ford perform because their executives will discuss the impact of the month-long strike by the United Auto Workers. Here are the significant earnings reports for this week:
Here’s the schedule for important earnings reports this week:
- In the morning: General Motors and Coca-Cola
- In the evening: Alphabet, Microsoft, and Snap
- In the morning: Boeing
- In the evening: IBM and Meta
- In the morning: Merck, Bristol-Myers Squibb, and Comcast
- In the evening: Amazon, Intel, Ford, and Chipotle Mexican Grill
3. Gaza Received Humanitarian Aid
The first shipments of humanitarian aid to Gaza have arrived, marking the first aid deliveries since the Israel-Hamas conflict began. More supplies like food, water, and medical assistance are expected to arrive on Monday.
U.S. President Joe Biden spoke with Israeli Prime Minister Benjamin Netanyahu and assured that there will be a continuous flow of aid into Gaza. Israel has increased its airstrikes in the region in recent days while holding off on a possible ground invasion.
World leaders are working to prevent the conflict from escalating into a larger war.
4. Oil Company Merger Activity Increases
Chevron has announced its plan to purchase Hess in a significant $53 billion deal using stock. This move will help Chevron expand its presence in the oil production industry in Guyana, where ExxonMobil is a key player.
This acquisition marks the second major oil industry deal this month. Exxon has also recently agreed to buy Pioneer Natural Resources for nearly $60 billion in an all-stock deal.
5. More Google Scrutiny
Japan’s Fair Trade Commission is looking into possible anticompetitive actions by Google, which is part of Alphabet. The investigation will focus on whether Google’s search engine and its various apps and platforms have violated antitrust rules.
This inquiry in Japan is in addition to ongoing investigations in the European Union and the United States regarding allegations of anticompetitive behavior. A spokesperson from Google stated that Android is an open platform that allows users to customize their devices as they see fit, including how they browse the internet, search for information, and download apps.
For investors, it’s essential to monitor the rising bond yields and its impact on the stock market. The tech industry and major earnings reports are in focus this week. Humanitarian aid has reached Gaza amid the Israel-Hamas conflict, while the oil industry witnesses notable mergers. Google faces scrutiny for anticompetitive practices in Japan and elsewhere. These are key factors shaping the financial and geopolitical world.