5 things to know before the stock market opens Monday, May 17

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Listed below are a very powerful information, traits and evaluation that buyers want to begin their buying and selling day:

1. Late-week inventory bounce fizzles in Monday’s premarket

Folks stroll previous the New York Inventory Trade on Wall Road on Could 10, 2021 in New York Metropolis.

Angela Weiss | AFP | Getty Photos

U.S. inventory futures fell Monday after Friday’s robust rally. Nonetheless, Friday’s beneficial properties of greater than 1% for the Dow Jones Industrial Common and S&P 500 and over 2% for the Nasdaq weren’t sufficient to make up for sharp declines earlier final week. The Dow and S&P 500 noticed weekly declines greater than 1% every, whereas the Nasdaq sank over 2% in its worst weekly performances since February. The roller-coaster trip on inflation worries hit shares early final week, with the Dow dropping 3.4%, the S&P 500 falling 4% and the Nasdaq plunging 5%. All three inventory benchmarks made up a few of these losses Thursday and Friday.

2. 10-year yield beneath 1.7%, whilst inflation simmers

Bond yields had been principally decrease Monday after the 10-year Treasury yield jumped to over 1.7% on Wednesday through the worst of final week’s inventory promoting. That was the best 10-year yield degree in additional than a month, following a run of 14-month highs in March. Inflation fears and whether or not the Federal Reserve can be in a position maintain the road as promised on close to 0% rates of interest and big asset purchases rattled markets. On Wednesday, the federal government reported that client costs in April accelerated at its quickest tempo in additional than 12 years because the U.S. financial restoration kicked into gear. The Fed releases minutes from its April assembly this Wednesday.

3. AT&T agrees to merge WarnerMedia with Discovery

John Stankey, President & Chief Working Officer of AT&T and Chief Govt Officer of WarnerMedia, speaks onstage at HBO Max WarnerMedia Investor Day Presentation at Warner Bros. Studios on October 29, 2019 in Burbank, California.

Presley Ann | Getty Photos Leisure | Getty Photos

AT&T on Monday introduced a deal to mix its WarnerMedia film and media content material unit with Discovery, paving the way in which for one in every of Hollywood’s largest energy gamers to raised compete with streaming media giants like Netflix and Disney. Shares of AT&T gained about 2% and Discovery soared roughly 10%. AT&T shareholders would personal 71% of the brand new firm. Discovery shareholders would personal 29%. The transaction would put collectively such properties as WarnerMedia’s CNN, HBO and Warner Bros., and Discovery’s HGTV, TLC and Historical past channel. In 2018, AT&T acquired Time Warner, since renamed to WarnerMedia, for $85 billion in fairness worth.

4. Elon Musk clarifies that ‘Tesla has not offered any bitcoin’

Tesla CEO Elon Musk clarified in a tweet early Monday that the electrical automobile maker has “not offered any bitcoin.”

Bitcoin on Monday noticed a partial restoration, buying and selling above $45,000 per unit. The value of the world’s largest cryptocurrency fell beneath that degree Sunday after Musk seemingly implied in a Twitter trade that Tesla offered or might promote the remainder of its bitcoin holdings. He responded “certainly” to a sympathetic tweet.

All this got here days after Musk stated Tesla deliberate to carry its bitcoin, despite the fact that it halted use for electrical automobile purchases till bitcoin mining operations can turn out to be extra power sustainable.

5. CDC director defends new masks coverage; shops go their very own methods

Folks having fun with the sunshine on the steps of The MET in New York Metropolis because the CDC lifts restrictions on masks sporting for individuals who are totally vaccinated.

Adam Jeffery | CNBC

CDC Director Dr. Rochelle Walensky referred to as for individuals to be sincere and ditch their Covid masks provided that they’re totally vaccinated. The sudden change in CDC steering final week left some individuals confused because it doesn’t raise native masks ordinances. Native governments and companies are grappling with whether or not to observe the CDC’s new steering. Starbucks stated, “Facial coverings can be non-compulsory for vaccinated clients starting Monday, Could 17, except native rules require them by legislation.” Walmart and Costco led the way in which Friday. Goal joined as effectively.

— Comply with all of the market motion like a professional on CNBC Professional. Get the most recent on the pandemic with CNBC’s coronavirus protection.

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