Here are the top news, trends, and analysis investors need to get their trading day started:
1. Single stock futures reduced profits after Thursday’s sale
Traders work on the trading floor of the New York Stock Exchange.
US stock futures cut profits after the Federal Reserve refused on Friday to extend a pandemic rule that eased the amount of capital banks had to hold against treasuries and other holdings. The move could boost bond yields further. Rising government bond yields weighed on technology stocks again on Thursday, causing the Nasdaq to fall 3%. The S&P 500, which also has a high tech weighting, fell almost 1.5% from its previous record close. Both stock benchmarks had their worst days in nearly a month. The Dow Jones Industrial Average fared much better, but was still down nearly 0.5% from its previous record close. The Nasdaq and S&P 500 were lower for the week at Thursday’s close, while the Dow was higher for the week.
2. The bond market rebels when it adjusts to the Fed’s inflation policy
Federal Reserve Chairman Jerome Powell listens during a Senate Banking Committee hearing on Capitol Hill, Washington, the United States, on Dec. 1, 2020.
Al Drago | Reuters
The 10-year government bond yield pulled back slightly on Friday, a day after hitting a 14-month high of 1.754%. Traders were outraged by the Federal Reserve’s willingness to let the economy and inflation heat up when the job market rebounds. Yields barely moved on Wednesday afternoon after the Fed’s meeting ended, initially responding to the forecast that there should be no rate hikes until 2023. The rapid rise in yields is due to fears that further Covid stimuli, on top of an already recovering economy, could trigger worrying inflation. The 10 year return started the year at less than 1%.
3. Nike Sales Miss Estimates; Beat FedEx Revenue
The Nike logo can be seen in the Nike Store in New York City on February 22, 2021.
John Smith | Corbis News | Getty Images
Dow stock Nike fell 2.5% in the pre-market on Friday the morning after the athletic footwear and apparel maker reported third-quarter sales that missed estimates. Sales growth of 2.5% to $ 10.36 billion was negatively impacted by widespread congestion in US ports and ongoing store closures in Europe. Nike also provided a sub-consensus forecast. However, the company beat estimates by 14 cents on earnings of 90 cents per share for the third quarter.
Boxes containing the Moderna COVID-19 vaccine are being prepared for shipment at the McKesson distribution center in Olive Branch, Mississippi, United States, on December 20, 2020.
Paul Sancya | Reuters
FedEx, a component of the Dow Jones Transportation Average, rose 5% on the Friday ahead of the market. The delivery giant after the bell on Thursday reported earnings of $ 3.47 per share for the third quarter, 24 cents better than expected. Revenue rose 23% to $ 21.51 billion, also significantly beating estimates. Large Christmas sales made up for storms in February that affected operations at several of Fedex’s largest hubs.
4. The US has administered over 100 million Covid shots, according to the CDC
United States President Joe Biden speaks on vaccination status during a coronavirus disease (COVID-19) response in the East Room of the White House in Washington on March 18, 2021.
Carlos Barria | Reuters
The CDC’s nightly updated vaccine tracker showed Friday morning that 115.7 million Covid vaccine doses had been administered in the U.S. and hit President Joe Biden’s first 100 million shots in his first 100 days in office well ahead of schedule. Last week, Biden said he expected to hit the goal on day 60. It happened on Day 57. As vaccinations progressed in the US, the Biden government on Thursday revealed the outline of a plan to distribute limited doses of vaccine to Canada and Mexico.
5. The first US-China meeting under Biden got off to a rocky start
US Secretary of State Antony Blinken speaks to Yang Jiechi, Director of the Central Commission’s Office for Foreign Affairs and Wang Yi, China’s Foreign Secretary 2021, at the opening session of the US-China Talks on March 18 at the Captain Cook Hotel in Anchorage, Alaska .
Frederic J. Brown | AFP | Getty Images
The first high-level meeting of U.S. and Chinese officials under the Biden administration began with a series of insults at a press briefing ahead of the meeting in Alaska on Thursday. The planned four-minute photo session for officers to address reporters lasted an hour and 15 minutes, according to NBC News due to the foamy exchange. The expectations for the two-day talks, which should be concluded on Friday, were already low.
– The Associated Press contributed to this report. Get the latest information on the pandemic on CNBC’s coronavirus blog.