U.S. stocks pointed to a lower open on the final trading day of the week, on concerns that interest rates will increase faster than expected.
|I:DJI||DOW JONES AVERAGES||34792.76||-368.03||-1.05%|
|I:COMP||NASDAQ COMPOSITE INDEX||13174.651547||-278.41||-2.07%|
The major futures indexes suggest a decline of 0.4% extending Thursday’s losses after Federal Reserve Chairman Jerome Powell said the Fed must move faster than it has previously to tackle high inflation. He also warned sharp interest rate increases are likely in coming months. Bond yields have been gaining with the yield on the 10-year Treasury hovering at 2.92% – the highest since 2018.
In earnings news, Gap Inc shares sank after the company slashed its forecast for quarterly sales, blaming execution challenges at its Old Navy brand. Gap also said the head of its Old Navy brand, Nancy Green, was leaving the company and the company’s Chief Executive Officer Sonia Syngal would lead the team until a replacement is named.
Snap shares in focus after reporting daily users grew 18% to 332 million during the first quarter compared to the year-ago period.
In other news, Disney shares are heading for a weekly loss of nearly 7% after lawmakers in the state of Florida voted to strip the media giant of its special tax status.
|DIS||THE WALT DISNEY CO.||121.66||-2.91||-2.34%|
Oil prices dipped on concerns COVID-19 lock downs in China are putting a dent in demand.
|USO||UNITED STATES OIL FUND L.P.||78.12||+0.88||+1.14%|
|BNO||UNITED STS BRENT OIL FD LP UNIT||30.93||+0.33||+1.08%|
U.S. West Texas Intermediate (WTI) crude futures declined $1.80, or 1.7%, to $101.98 a barrel. Brent futures slid $1.77, or 1.6%, to $106.56 a barrel.
The economic calendar is brief to end the week. The research firm IHS Markit is out with its flash manufacturing and services PMIs for April. Watch for manufacturing activity to edge down six-tenths of a point to 58.2. Services sector activity is expected to hold steady at 58.0. A reading above 50 indicates an expanding sector.
Bitcoin traded above $40,000.
FOX Business’ Ken Martin and The Associated Press contributed to this report.