5 things to know before the stock market opens Friday, May 6
Here are the most important news, trends and analysis that investors need to start their trading day:
1. Futures drop after worst day for Dow, Nasdaq since 2020
A trader works on the trading floor at the New York Stock Exchange (NYSE) in New York, May 5, 2022.
Andrew Kelly | Reuters
- The Dow Jones Industrial Average lost 1,063 points, or 3.1%, on concerns the Fed’s tightening cycle to slow the economy won’t get inflation under control. The tech-heavy Nasdaq fell nearly 5% to its lowest closing level since November 2020, falling further into a bear market. Both of those declines broke three-day winning streaks and were the worst single-day drops since 2020.
- The S&P 500 fell nearly 3.6% for its second worst day of the year. The S&P 500 and the Dow were in corrections.
2. Jobs growth accelerates in April: Nonfarm payrolls better than expected
A ‘We’re Hiring!’ sign is displayed at a Starbucks
Mario Tama | Getty Images News | Getty Images
The Labor Department on Friday morning reported a better-than-expected 428,000 nonfarm jobs were added to the U.S. economy in April. The unemployment rate last month held steady at 3.6%. A slight dip had been expected. Average hourly earnings in April rose a slightly less-than-expected 0.3% month over month and matched estimates with a 5.5% year over year gain.
- The report shows that jobs remain tight even as inflation remains high. Contributing to Thursday’s stock market sell-off was the government’s first-quarter report showing the steepest decline in worker productivity in 75 years and soaring labor costs.
3. Oil jumps as EU considers Russian crude sanctions; bitcoin sinks
Drilling rigs sit unused on a companies lot located in the Permian Basin area on March 13, 2022 in Odessa, Texas. United States President Joe Biden imposed a ban on Russian oil, the world’s third-largest oil producer, which may mean that oil producers in the Permian Basin will need to pump more oil to meet demand.
Joe Raedle | Getty Images News | Getty Images
Bitcoin is a volatile asset, and has been known to swing more than 10% higher or lower in a single day.
Jakub Porzycki | Nurphoto | Getty Images
Bitcoin fell below $36,000 on Friday, one day after Wall Street’s nosedive. The world’s largest cryptocurrency, touted by proponents as an inflation hedge, remained correlated to the Nasdaq, falling or rising in tandem with tech stocks. Bitcoin has dropped nearly 50% from its all-time high of more than $68,000 in November, with risk assets slammed in 2022 by rising inflation, Russia’s war in Ukraine and tighter Fed policy.
4. FDA limits use of J&J’s Covid vaccine over blood clotting risks
Licensed Vocational Nurse Eloisa Flores prepares a dose of Johnson & Johnson’s Janssen Covid-19 vaccine at a vaccination clinic in Los Angeles, California on December 15, 2021.
Frederic J. Brown | AFP | Getty Images
5. Under Armour sinks after issuing weak guidance, unexpected loss
The interior of an Under Armour store is seen on November 03, 2021 in Houston, Texas.
Brandon Bell | Getty Images
— CNBC’s Hannah Miao, Jesse Pound, Tanaya Macheel, Vicky McKeever, Jeff Cox, Patti Domm and Lauren Thomas as well as Reuters contributed to this report.
— Sign up now for the CNBC Investing Club to follow Jim Cramer’s every stock move. Follow the broader market action like a pro on CNBC Pro.
Here are the most important news, trends and analysis that investors need to start their trading day:
1. Futures drop after worst day for Dow, Nasdaq since 2020
A trader works on the trading floor at the New York Stock Exchange (NYSE) in New York, May 5, 2022.
Andrew Kelly | Reuters
- The Dow Jones Industrial Average lost 1,063 points, or 3.1%, on concerns the Fed’s tightening cycle to slow the economy won’t get inflation under control. The tech-heavy Nasdaq fell nearly 5% to its lowest closing level since November 2020, falling further into a bear market. Both of those declines broke three-day winning streaks and were the worst single-day drops since 2020.
- The S&P 500 fell nearly 3.6% for its second worst day of the year. The S&P 500 and the Dow were in corrections.
2. Jobs growth accelerates in April: Nonfarm payrolls better than expected
A ‘We’re Hiring!’ sign is displayed at a Starbucks
Mario Tama | Getty Images News | Getty Images
The Labor Department on Friday morning reported a better-than-expected 428,000 nonfarm jobs were added to the U.S. economy in April. The unemployment rate last month held steady at 3.6%. A slight dip had been expected. Average hourly earnings in April rose a slightly less-than-expected 0.3% month over month and matched estimates with a 5.5% year over year gain.
- The report shows that jobs remain tight even as inflation remains high. Contributing to Thursday’s stock market sell-off was the government’s first-quarter report showing the steepest decline in worker productivity in 75 years and soaring labor costs.
3. Oil jumps as EU considers Russian crude sanctions; bitcoin sinks
Drilling rigs sit unused on a companies lot located in the Permian Basin area on March 13, 2022 in Odessa, Texas. United States President Joe Biden imposed a ban on Russian oil, the world’s third-largest oil producer, which may mean that oil producers in the Permian Basin will need to pump more oil to meet demand.
Joe Raedle | Getty Images News | Getty Images
Bitcoin is a volatile asset, and has been known to swing more than 10% higher or lower in a single day.
Jakub Porzycki | Nurphoto | Getty Images
Bitcoin fell below $36,000 on Friday, one day after Wall Street’s nosedive. The world’s largest cryptocurrency, touted by proponents as an inflation hedge, remained correlated to the Nasdaq, falling or rising in tandem with tech stocks. Bitcoin has dropped nearly 50% from its all-time high of more than $68,000 in November, with risk assets slammed in 2022 by rising inflation, Russia’s war in Ukraine and tighter Fed policy.
4. FDA limits use of J&J’s Covid vaccine over blood clotting risks
Licensed Vocational Nurse Eloisa Flores prepares a dose of Johnson & Johnson’s Janssen Covid-19 vaccine at a vaccination clinic in Los Angeles, California on December 15, 2021.
Frederic J. Brown | AFP | Getty Images
5. Under Armour sinks after issuing weak guidance, unexpected loss
The interior of an Under Armour store is seen on November 03, 2021 in Houston, Texas.
Brandon Bell | Getty Images
— CNBC’s Hannah Miao, Jesse Pound, Tanaya Macheel, Vicky McKeever, Jeff Cox, Patti Domm and Lauren Thomas as well as Reuters contributed to this report.
— Sign up now for the CNBC Investing Club to follow Jim Cramer’s every stock move. Follow the broader market action like a pro on CNBC Pro.