Traders work on the floor of the New York Stock Exchange on March 3, 2023.
Timothy A. Clary | AFP | beautiful pictures
Here are the most important news items investors need to start their trading day:
1. Entering hinge week
The US stock market entered the new week with a strong five-day frame. The Dow on Friday broke a four-week losing streak, while the S&P 500 and Nasdaq also ended the week higher. Whether it is a short-term rally or the beginning of a fresh rally remains to be seen, but the overall mood is bleak. While inflation cooled, the economic picture continued to favor high inflation. That means more belligerence from the Federal Reserve. On Tuesday and Wednesday, we’ll hear from Fed Chairman Jerome Powell, and investors will eagerly await the latest clues on how the central bank will approach its next rate hike decision. . This Friday also brings the February jobs report. If it’s anything like January’s number (517,000 is surprisingly large), watch out. According to Live market updates.
2. China’s cautious outlook
Over the weekend, China announced it would target GDP growth 5% been a year. That’s rather conservative, as the country’s GDP target for 2022 is slightly above that target, even if it still applies so-called “Covid-free” measures. (China finally reported 3% GDP growth for 2022.) The muted official forecast from the Chinese government reflects broader uncertainty in the market and economies around the world. It’s Russia’s war in Ukraine, the US-China tech and trade standoff, the continued rise of India, and lingering worries about inflation. Meanwhile, in China, the government is facing the consequences of lifting Covid restrictions and the real estate sector has a long way to go before it recovers.
3. Consumer pulse
Sign outside a store of Dick’s Sporting Goods Inc. in Clarksville, Indiana, on Monday, November 9, 2020.
Luke Sharret | Bloomberg | beautiful pictures
Earnings season is fading, but there are still plenty of consumer and retail names to report. Investors are keeping an eye on such companies to get a more detailed idea of how consumers are living in this inflation-hungry economy. So far, the word on the retail front has been “cautious,” as companies are expecting a more frugal consumer this year. Here are the big names reporting earnings this week:
4. Tesla cuts prices again
An electric vehicle from Tesla Inc. waits to transport passengers through the Las Vegas Convention Center Roundabout ahead of the Consumer Electronics Show (CES) at the Las Vegas Convention Center in Las Vegas, Nevada on January 3, 2022.
Patrick T. Fallon | AFP | beautiful pictures
Tesla is taking advantage of its advantage in the electric vehicle space by lowering prices on some models while competitors like General Motors and Ford scramble to catch up. The company has slashed prices on two of its more expensive models, the S and X, according to Reuters and other stores. The cuts come shortly after Tesla CEO Elon Musk acknowledged that demand had picked up following other recent price cuts. “People’s desire to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla,” he said last week at the company’s investor day. Stimulating demand has become Tesla’s top priority after a brutal 2022 for the company’s stock.
5. ‘So much like hell’
A Ukrainian medic from the 28th Brigade runs through a partially dug trench along the front lines on March 5, 2023, outside Bakhmut, Ukraine.
John Moore | beautiful pictures
The battle for the eastern Ukrainian city of Bakhmut continues. Russian forces have dominated Ukrainian forces in the area for some time, but it remains unclear how long the fighting there will last. A Ukrainian commander said on Sunday that the defenses were still holding out, although he acknowledged the situation in Bakhmut was “a lot like hell, like on the entire eastern front.” In a separate development, German Chancellor Olaf Scholz told CNN that the only condition for peace talks is that Russian troops must completely withdraw from Ukraine. According to live war updates.
— Sarah Min, Evelyn Cheng and Holly Ellyatt of CNBC contributed to this report.
— Follow broader market action like a pro on CNBC expert.
