1. Futures are sinking into what would add to Tuesday’s drop in Fed concerns
Traders on the NYSE floor, March 31, 2022. Source: NYSE US stock futures fell on Wednesday as investors expected more information on what appears to be the US Federal Reserve moving into an even more aggressive monetary tightening trajectory. Minutes from the Fed meeting in March, which showed the first rate hike in more than three years, are published at 2 p.m. ET. The market is seeing interest rate hikes of at least 0.25% in all six Fed meetings of the year, with bigger 0.5% increases likely in May and June. Fed Governor Lael Brainard, who usually favors loose policies and low interest rates, said on Tuesday that the central bank must act quickly and aggressively to reduce inflation. These comments drove Wall Street lower and bond yields close to three-year highs again.
2. Increase in bond yields, boost in mortgage rates, decrease in demand for mortgages
In fact, 30-year fixed-rate mortgages topped 5% on Tuesday. The environment of rising interest rates has pushed the overall volume of mortgage applications below another 6% last week, according to the Bank Mortgage Association. This is down 41% from the same week a year ago.
3. Oil CEOs, Yellen to testify at separate hearings on Russia-Ukraine war
Oil prices remained high on Wednesday amid supply concerns as the United States and its European allies considered more sanctions against Moscow as accusations of wartime atrocities by Russian troops in Ukraine surfaced. The head of the European Council said that sooner or later sanctions are needed for oil and gas in Russia. Higher crude oil prices, in turn, have pushed up gasoline prices. The CEOs of oil companies, including Chevron and Exxon, are due to testify before a House committee on Wednesday on what they are doing to control energy costs. At another parliamentary hearing, Finance Minister Janet Yellen is set to discuss the global impact of Russia’s invasion of Ukraine on the world economy.
4. JetBlue tops Frontier with $ 3.6 billion in cash offer for Spirit Airlines
A Spirit Airlines plane on the tarmac at Fort Lauderdale-Hollywood International Airport on February 7, 2022 in Fort Lauderdale, Florida. Joe Raedle | Getty Images JetBlue Airways has made a spontaneous $ 3.6 billion cash offer to Spirit Airlines, raising questions about Spirit agreeing to partner with rival discount company Frontier Airlines. Spirit said its board was evaluating JetBlue’s proposal, which is 33% higher than Frontier’s share and cash offer. Trading in shares of Spirit stopped before the close of the market on Tuesday, after the share jumped more than 22%. Shares of Spirit were lower in Wednesday’s premarket. Frontier was also lower in the premarket.
Musk has spent $ 2.64 billion on Twitter shares so far this year, according to archives
Elon Musk speaks at the Automotive World News Conference at the Renaissance Center in Detroit, Michigan. Rebecca Cook Reuters Tesla CEO Elon Musk has been buying Twitter shares on an almost daily basis since late January, spending $ 2.64 billion on his current stake in the company, according to a regulatory filing on Tuesday. The revelation was made in 13D, which confirms Musk’s intentions to be more active in Twitter business. He was announced as a new board member earlier on Tuesday. Twitter also confirmed that it was testing an edit button, which was the subject of a Musk Twitter poll on Monday, hours after it revealed that it had gained more than 9% of the social network. CNBC reporters Jeff Cox, Diana Olick, Leslie Josephs, Lora Kolodny and Jordan Novet, as well as the Associated Press and Reuters, contributed to this report. – Join the CNBC Investing Club now to follow every Jim Cramer stock move. Follow the broader market action as a professional on CNBC Pro.
