5 things to know before the stock market opens on Thursday 12 May

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

1. Stock futures fall after Wall Street extended its multi-day losing streak

Traders on the floor of the NYSE, May 11, 2022.

Source: NYSE

US stock futures it fell Thursday as the large sell-off and revaluation of risky assets continued with little room to hide.

  • The morning after the earnings, component Dow Disney it fell more than 4.5% to around $ 100 per share in the premarket.
  • Applerecently down with the rest of the market, was dethroned as the most valuable company in the world from oil giant Saudi Aramco.
  • ford Other General Motors both fell sharply in the premarket. Wells Fargo downgraded both two-tier stocks to underweight from overweight, saying 2022 could be the “peak of profits” for legacy automakers.
  • The recent dip in Bitcoin and the entire cryptocurrency market intensified on Thursday.
  • Treasury prices, which move inversely to yields, jumped as investors sought the perceived safety of bonds.

Whether yields are likely to remain lower hinges on Thursday’s release before the bell of April wholesale inflation data, a day after consumer prices recorded another sharp rise, albeit at a slightly slower pace. . the Industrial average of the Dow Jonesthe S&P 500 and the Nasdaq on Wednesday it fell by 1%, over 1.6% and nearly 3.2%, respectively.as recorded multi-day losses.

2. One day after the rise in consumer prices, investors await further key inflation data

People work at the Rivian Automotive electric vehicle factory in Normal, Illinois on April 11, 2022.

Kamil Krzaczynski | Reuters

Producer Price Index for April, the second major inflation report this week, the government release is scheduled for 8:30 am ET. Economists expect the April stock to rise by 0.5% and the base rate to rise by 0.6%, which excludes food and energy prices. In March, the main PPI jumped 1.4% and the benchmark rate increased 1%.

A reading on the second pillar of the Federal ReserveThe dual mandate to promote price stability and maximum occupancy is also available at 8:30 ET. Initial jobless claims for the week ending May 7 fell to 194,000. Although declining early Thursday, bond yields rose to multi-year highs, with the 10-Year Treasury Yield surpassing 3% as traders rebel against the Fed, fearing inflation will remain high even if the economy slows.

3. Bitcoin plunges to 16-month lows as the entire cryptocurrency market collapses

Bitcoin slipped into a phase a less than $ 27,000 Thursday for first time in more than 16 months, as the cryptocurrency market extended its losses, in part, due to fears of rising inflation. Bitcoin, touted as a store of value like gold by backers, was recently traded in tandem with tech stocks and the Nasdaq. The largest cryptocurrency in the world has dropped 60% from its all-time high in November.

  • Tether, the largest stablecoin in the world, broke under his $ 1 peg Thursday, increasing market concern after the fall of the Terra stablecoin protocol. TerraUSD, or UST, is also expected to reflect the value of the dollar, but on Wednesday it plummeted to less than 30 cents, shaking investor confidence in decentralized finance. On Thursday TerraUSD was trading around 45 cents.

4. Disney sinks when CFO warns streaming won’t be that strong by the end of the year

In this photo illustration, a hand holding a TV remote in front of the Disney Plus logo on a TV screen.

Rafael Henrique | Sopa Images | Light rocket | Getty Images

Disney’s stock initially rose in after-hour trading Wednesday. But they quickly turned lower after that of the company CFO recognized that the second half of the year may not be as strong as the first half when it comes to streaming. Disney + ended its fiscal second quarter with 137.7 million subscribers, up 7.9 million from a year ago and better than estimates. Investors were eager to see those Disney + numbers later Netflix last month saw a decline in paid subscribers for the first time in more than 10 years.

  • Disney’s second-quarter tax revenue increased 23% to $ 19.25 billion, aided by strong theme park sales. The revenue would have been $ 1 billion higher, had it not been for the early termination of some licensing deals to make more content available for streaming. Disney reported an adjusted earnings of $ 1.08 per share.

5. Beyond Meat collapses after larger-than-expected quarterly loss, lost revenue

Ethan Brown, founder, president and CEO of Beyond Meat.

Adam Jefferies | CNBC

Beyond the meat Shares plunged 25% in the premarket on Thursday, the morning after the manufacturer of plant-based meat alternatives reported a quarterly loss larger than expected and lower than expected revenues. The company cited a number of areas that hampered results, including higher discounts and cheaper prices for international consumers and the launch of the company’s vegetable jerky, which weighed heavily on margins.

  • Trying to calm investors, management said the first quarter just reported should be the low point for margins in 2022 and that jerky production should be much more efficient by the second half of this year. Beyond Meat reiterated its full-year revenue forecast of $ 560 million to $ 620 million.

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