5 things to know before the stock market opens on Friday May 20

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

1. Stock futures rise after S&P 500 closes on edge of bear market

Traders work on the floor of the New York Stock Exchange (NYSE) in Manhattan, New York, U.S., May 19, 2022.

andrew kelly | Reuters

U.S. stock futures rebounded on Friday, a day after continued selling on Wall Street saw the S&P 500 close to Nasdaq membership in a bear market. Both of these benchmark stocks were heading for their seventh consecutive weekly losses. The Dow Jones Industrial Average, which also closed lower on Thursday, was on course for its eighth straight week of declines. The Dow has been stuck in a sharp correction, defined as a decline of 10% or more from a prior high. A bear market is signified by a decline of 20% or more from a previous high.

Bond prices, which move inversely to yields, fell on Friday as stocks rebounded in pre-trade. The 10-year Treasury yield was trading around 2.9%. It’s just below the key 3% level that has been breached intermittently for weeks as traders push yields higher on the belief that the Federal Reserve will need to raise interest rates more aggressively to rein in. inflation.

2. China lowers a key rate in an attempt to revive its economy hampered by the Covid

High-rise buildings in downtown Shanghai, China, March 12, 2018. China cut its benchmark mortgage lending rate by a surprisingly wide margin on Friday, its second cut this year as Beijing seeks to revive the struggling housing sector to support the economy.

Johannes Eisele | AFP | Getty Images

China is going the other way with borrowing costs, cutting its benchmark mortgage rate by a surprisingly wide margin on Friday. It is the second cut this year in this key rate as Beijing seeks to revive the country’s struggling property sector to support the world’s second-largest economy. Senior Chinese officials have vowed to take further steps to tackle a slowdown in economic growth due to shutdowns and other restrictive measures under that country’s zero Covid policy. Many private sector economists expect China’s economy to contract this quarter from a year earlier, down from 4.8% growth in the first quarter.

3. Ross Stores becomes the latest retailer crushed by inflation

Pedestrians walk past a Ross Stores store in San Francisco.

Noah Berger | Bloomberg | Getty Images

Back in the US, Ross Stores became the latest retail stock criticized after reporting inflation was a problem. Shares of the off-price retailer fell 26% in the pre-market, following quarterly earnings and revenue misses. In its first-quarter earnings release, released after the closing bell on Thursday, Ross Stores also issued a bearish outlook. The company said Russia’s war in Ukraine had “exacerbated inflationary pressures”, adding that it faced difficult year-on-year comparisons in the first half of 2022 due to expiration. government Covid stimulus and the normalization of pent-up demand.

4. CDC recommends booster of Pfizer’s Covid vaccine for children ages 5-11

A healthcare worker administers a Pfizer-BioNTech Covid-19 vaccine to a child at a vaccination site in San Francisco, California, U.S., Monday, January 10, 2022.

David Paul Morris | Bloomberg | Getty Images

The Centers for Disease Control and Prevention recommends a Pfizer Covid booster shot for children ages 5 to 11 at least five months after their primary vaccination series. The CDC’s decision on Thursday comes as Covid infections are on the rise across the country and immunity to the first two doses wanes. The agency is rolling out boosters for ages 5 to 11, even though most kids in that age group haven’t yet received their first two doses. Only 29% of this cohort are fully vaccinated. CDC Director Dr. Rochelle Walensky, in a statement Thursday, sought to reassure parents that vaccines are safe and encouraged them to have their children vaccinated.

5. Musk denies ‘wild accusations’ in apparent reference to harassment report

SpaceX CEO Elon Musk attends a post-launch press conference inside the auditorium at NASA’s Kennedy Space Center press site in Florida on May 30, 2020, following the launch of the the agency’s SpaceX Demo-2 mission to the International Space Station.

NASA/Kim Shiflett

SpaceX founder and CEO Elon Musk said in a tweet late Thursday that the “wild accusations” leveled at him aren’t true. He did not explain what those charges were. But his response came after a Business Insider report Thursday said the aerospace company paid $250,000 in compensation to a flight attendant who accused the billionaire of sexual misconduct. The report, which cites interviews and documents obtained by Insider, says the woman claimed that during a massage she gave Musk, he exposed his erect penis, touched her thigh without her consent, and offered to buy her a horse if she performed sexual acts. CNBC could not independently verify these claims.

—CNBC Fred Imbert, Sarah Min, Vicky McKeever, Spencer Kimball and Dan Mangan as well as Reuters contributed to this report.

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Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.


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