Here are the most important information investors need to start their trading day:
1. Job Friday is here
All eyes will be on February Jobs Report, which arrives at 8:30 a.m. ET. If it’s a big number and shows wages are rising, investors are likely to be more wary of bigger and faster rate hikes from the Federal Reserve, which Chairman Jerome Powell has warned of. earlier this week. What is the expectation? According to Dow Jones, economists estimate that the US economy added 225,000 jobs last month. Although this is well below the shocking 517,000 jobs in January, this figure would still be considered a robust number – making it a “good news is bad news” scenario for bulls.
2. Another disappointing week
A general view of the facade of the New York Stock Exchange on January 13, 2015 in New York City.
Ben Hider | Getty Images Entertainment | Getty Images
We’ll see what impact the jobs report will have on stocks, but the S&P 500, Nasdaq and Dow are poised to end the week in the red. In fact, all three could end up falling more than 3% for the week. Stocks come off a terrible Thursday after SVB Financial, aka Silicon Valley Bank, spooked the financial industry. (More on that below.) It looks like similar action could continue on Friday, as bank stocks faltered in European markets. Follow live market updates.
3. Trouble in the Valley
Silicon Valley Bank is in deep unrest, stoking fears of a bank run. Shares of the company fell 60% on Thursday, and they were down another 40% and more in high-volume after-hours trading Friday morning. The bank has been around for four decades, providing support to tech startups even as the industry has seen its ups and downs. This time seems different, however. SVB sent investors running for the hills this week after selling $21 billion in holdings at a loss of around $1.8 billion. He also raised $500 million from General Atlantic, a private equity firm. Venture capital activity had already waned, the IPO market has largely dried up, and now Fed rate hikes are putting even more pressure on the high-risk world of tech finance. Client funds are also dwindling rapidly. “Psychologically, it’s a blow because everyone realizes how fragile things can be,” Scott Orn, chief operating officer at Kruze Consulting, told CNBC.
4. GM is offering buyouts to thousands of people
US President Joe Biden with General Motors CEO Mary Barra looks at a Chevrolet Silverado EV as he visits the 2022 North American International Auto Show at the Huntington Place Convention Center in Detroit, Michigan, on September 14, 2022. – Biden visits the auto show to highlight electric vehicle manufacturing.
Mandel Ngan | AFP | Getty Images
General Motors is not done with staff cuts. The Detroit automaker said Thursday it would offer buyouts to the majority of its 58,000 employees in the United States. The company said this would result in a pretax charge of $1.5 billion. The move comes shortly after GM announced it was laying off about 500 white-collar workers worldwide. The company is looking to control costs while accelerating production of expensive electric vehicles to keep up with rapidly changing standards in the United States and abroad. “Employees are strongly encouraged to consider the program,” GM said in a statement. “By sustainably reducing structured costs, we can improve vehicle profitability and remain agile in an increasingly competitive market.”
5. The gap falls on itself
Gap clearance price tags are seen in the Gap retail store on September 20, 2022 in Los Angeles, California.
Dinner Allison | Getty Images
Gap was once America’s avatar of mass-market hipness. These days, however, the clothing retailer is on the verge of insignificance. Gap shares fell after its last disappointing earnings report. Sales fell during the holiday quarter, while the company posted a much larger loss than Wall Street expected. He also offered soft guidance for the current quarter and year. Gap – whose brands include Banana Republic, Athleta and Old Navy – also announced another shuffle in its executive ranks as it focuses on a choice for its permanent CEO. The company said an external candidate would fill the role.
– CNBC’s Patti Domm, Alex Harring, Ari Levy, Rohan Goswami, Michael Wayland and Gabrielle Fonrouge contributed to this report.
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