Here are the most important information investors need to start their trading day:
1. Stocks try to rebound
Traders work on the floor of the New York Stock Exchange.
Futures rose on Tuesday morning after equities’ attempt to maintain a rally failed on Monday. Investors are still weighing the risks of runaway inflation as rates rise and more people begin to fear a potential recession. Investors will also have more economic data to consider. The June consumer confidence report is due Tuesday at 10 a.m. ET, while S&P Case-Shiller is expected to report on the rate of house price growth in April.
2. Big banks and dividends
JP Morgan CEO Jamie Dimon listens to his presentation at the Boston College Chief Executives Club luncheon in Boston, Massachusetts, U.S., November 23, 2021.
Brian Snyder | Reuters
Several Wall Street banks increased their dividends after passing their annual Federal Reserve stress tests. Wells Fargo and Goldman Sachs announced some of the biggest increases – 20% and 25%, respectively. However, two other big names, Citigroup and JPMorgan Chase, decided to keep their dividend level flat, despite passing the stress test. “We will continue to use our capital to invest in and grow our market-leading business, pay a sustainable dividend, and we will retain capital to fully meet our future regulatory requirements,” JPMorgan CEO Jamie Dimon said in a statement. .
3. Lagarde on recession fears
ECB President Christine Lagarde could signal that the Governing Council is leaning towards an end to net purchases at the start of the third quarter.
Michael Probst | Swimming pool | Reuters
Europe, destabilized by Russia’s war against Ukraine, faces declining growth and an energy crisis. But the head of the European Central Bank, Christine Lagarde, is trying to allay concerns about a possible recession this year in the euro zone. “We have significantly lowered our growth forecast for the next two years,” she said on Tuesday. “But we still expect positive growth rates due to national buffers against loss of growth momentum.” Lagarde also said the central bank would raise rates faster, if necessary, to reduce inflation.
4. JetBlue further increases its offer
Terminal A at LaGuardia International Airport for JetBlue and Spirit Airlines in New York.
Leslie Joseph | TUSEN
The JetBlue-Spirit-Frontier saga reaches its climax this week. Spirit shareholders are due to vote Thursday on the offer to acquire discount airline Frontier. However, JetBlue isn’t ready to throw in the towel just yet. JetBlue again raised its offer price for Spirit on Monday night, days after Frontier softened its own offer and Spirit’s board said it would rather merge with Frontier. Either merger would create the fifth-largest carrier in the United States
5. Nike beats, but challenges remain
People walk past a store of sporting goods retailer Nike Inc at a shopping complex in Beijing, China March 25, 2021.
Florence Lo | Reuters
Nike on Monday posted quarterly earnings and revenue that beat Wall Street expectations – even as the company grappled with soaring inflation in the United States, a war-torn European market and tight lockdowns. Covid in China. Investors, however, are not impressed. Shares of Nike fell in premarket trading. The sports footwear and apparel maker said it still faces major supply chain issues, including longer shipping times and high transportation costs.
– TUSEN’s Yun Li, Silvia Amaro, Hugh Son, Leslie Josephs and Melissa Repko contributed to this report.
— Register now for the TUSEN Investing Club to follow Jim Cramer’s every stock market move. Follow the evolution of the market like a pro on TUSEN Pro.