5 things to know before the stock market opens on Wednesday 11 May

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

1. Stock futures rise before key inflation report after a volatile session

Traders on the floor of the NYSE, May 10, 2022.

Source: NYSE

US stock futures it rose Wednesday before the first of two key inflation reports released this week. Wall Street saw a volatile session Tuesday, with the Industrial average of the Dow Jones erasing a 500-point gain, hitting a session down about 350 points before closing 84 points lower, a fourth day in a row down. the S&P 500 and the Nasdaq they were able to close higher, breaking three-session losing streaks. Download the actions Disney is set to report earnings after Wednesday’s closing bell.

2. The surge in consumer prices last month was somewhat moderate

Customers pushing shopping carts shop at a supermarket on April 12, 2022 in San Mateo County, California.

Liu Guanguan | News services in China | Getty Images

the 10-Year Treasury Yield it fell to around 2.9% on Wednesday, backing off its multi-year highs. Traders will be watching the government release at 8:30 am ET consumer price index for April. Economists predict that the CPI, which measures retail inflation, will show an 8.1% year-over-year increase from the 8.5% gain in March. Such a reading could indicate that inflation has peaked, which would bode well for the Federal Reserve’s restrictive approach to ease price pressures.

3. US oil prices rise after two days of sharp supply losses

A customer refuel at a Chevron gas station over $ 4 per gallon in Seattle, Washington, USA on Monday, March 7, 2022.

David Ryder | Bloomberg | Getty Images

A source of inflation in the economy has been oil prices and, in turn, record gasoline prices. West Texas intermediate crudethe American benchmark, pink around 3.5% to $ 103 a barrel on Wednesday after sharp consecutive declines. The dip in the previous two sessions was driven by supply concerns as the European Union works to get support for a Russian oil embargo. A vote on the proposal, which needs unanimous approval, was delayed as Hungary put its foot in the opposition.

4. Coinbase collapses after the cryptocurrency exchange turns into a weak quarter

Coinbase signage in Times Square in New York during the company’s initial public offering on Nasdaq on April 14, 2021.

Robert Nickelsberg | Getty Images

Actions of Coinbase fell 14.5% in premarket on Wednesday, the morning after the cryptocurrency exchange reported quarterly revenue fell 27% to $ 1.17 billion. below estimates. It also announced a quarterly loss of $ 1.98 per share. Coinbase has seen a drop in users, with the digital currency market having experienced a steep downturn recently. Bitcoin has lost more than 50% from its all-time high of over $ 68,000 in November.

5. UST Stablecoin, thought to be pegged to the dollar, plummets below 50 cents

The two main tokens of the Terra embattled cryptographic project now I’m in free fall. UST, a so-called stablecoin that aims to maintain a 1-to-1 bond with the US dollar, fell to a low of 31 cents on Wednesday. Token sister luna is down more than 80% to $ 3.78. Stablecoins are similar to bank accounts for the crypto economy, offering a solid store of value to avoid the kind of volatility that cryptocurrencies like bitcoin have become famous for, at least in theory. While still new, UST has grown to be a major player in the cryptocurrency economy, with a circulating supply of 16 billion tokens.

– CNBC Hanna Miao, Samantha Subin, Sara Min, Patti Dom, MacKenzie Sigalos Other Ryan Browne as well as Reuters contributed to this report.

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