5 things to know before the stock market opens on Monday, April 4

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

1. Wall Street looks higher, but key Treasury spreads remain inverted

US Stock Futures rose modestly on Monday, with the tech-heavy Nasdaq the strongest. Twitter shares soared 25% in premarket after Elon Musk revealed a large stake in the social media company. the second quarter on Wall Street got off to a positive start on Friday, which was also the first day of April. Historically, April has been the best month of the year for stocks, with the S&P 500 gaining an average of 1.7%. The first quarter, which ended Thursday, was the worst first quarter in two years, which included the covid pandemic lows at the end of March 2020.

Key Bond Yield Spreads on Monday, the 2-year/10-year and 5-year/30-year remained inverted, a market distortion that occurred before past economic downturns. Bond yields rose on Friday. But the real strength was among shorter-dated Treasuries, as traders worried that weaker-than-expected but still strong March job growth could give the Fed the green light to be more aggressive with its interest rate hike cycle.

US oil prices jumped 3% on Monday, above $100 per barrel as supply concerns persisted due to disruptions from Russia’s war in Ukraine. Crude fell 13% last week after the US announced it will release 1 million barrels a day of oil from its Strategic Petroleum Reserve for six months from May to help combat soaring energy costs.

2. Twitter shares soar after Elon Musk takes a huge stake in the social network

Musk the Frank Tesla and the CEO of SpaceX and the richest person in the world, has become Twitter’s largest outside shareholdernot long after criticizing the social network for what he said was his falling on freedom of expression. According to a regulatory filing, Musk owns nearly 73.49 million shares of Twitter.

That’s a 9.2% stake, worth $3.6 billion based on Twitter’s premarket rise to more than $49 a share. Although it was classified in the filing as a passive holding, investors were offering more shares of the company on the possibility that this could lead to something more.

  • Over the weekend, Tesla reported the first quarter electric vehicle deliveries of 310,048, slightly below estimates but 67% more than a year ago. Model 3 and Model Y vehicles comprised 95% of the first quarter figures. Deliveries are the closest approximation to Tesla’s reported sales figures.

3. Starbucks completes share buyback and Howard Schultz returns as interim CEO

starbucks shares fell about 2.5% after the coffee chain suspended its share buyback program. Howard Schultz who returns as interim CEO of Starbucks, wrote in a message to employees: “From now on, we will suspend our share buyback program. This decision will allow us to invest more profits in our people and our stores, the only way to create long-term value for all stakeholders.”

  • With Schultz steering the ship for the time being, his third term at the helm, Starbucks has said it is looking for a permanent CEO after Kevin Johnson retires.

4. Jamie Dimon Highlights Three Forces That Will Likely Shape the World

jamie dimondCEO and chairman of the largest US bank by assets, pointed to a potentially unprecedented combination of risks facing the country in its annual shareholder letter. JPMorganDimon wrote that three forces are likely to shape the world over the next several decades: a US economy recovering from the pandemic; high inflation that will usher in an era of rising rates; and Russia’s invasion of Ukraine and the resulting humanitarian crisis. Dimon also said that he believes the United States was in the midst of a boom that could “easily” last as long as 2023.

5. Ukrainian President Volodymyr Zelenskyy accuses Russia of genocide

President of Ukraine Volodymyr Zelenskyy accused Russian forces from committing genocide, saying Sunday morning that his people were being “destroyed and exterminated. Zelenskyy’s comments came in the wake of reported devastation in Bucha, a town 23 miles northwest of the capital city of kyiv, which was liberated by Ukrainian forces. In a video shown during Sunday night’s Grammy Awards show, Zelenskyy implored artists to support Ukraine.

  • The United States and its European allies they are preparing to record more sanctions on Russia following mounting evidence of war crimes committed by its forces in Ukraine.
  • Russia’s chief negotiator said talks on the draft peace treaty would resume on Monday, but stressed that the Kremlin’s position on annexed Crimea and breakaway parts of the Donbas region remains unchanged.

— CNBC reporters samantha subin, stevens pipe, Vicky McKeever, fred imbert, lora kolodni, hugo son and Natasha Turak as well as The Associated Press and Reuters contributed to this report.

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