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Stock Futures Stumbling Into New Month

All eyes are on this week's monetary policy update from the Fed

Digital Content Manager
May 2, 2022 at 9:04 AM
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Stock futures are on shaky footing this morning, with Dow Jones Industrial Average (DJIA) futures sitting just above fair value, while futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are both poised for more losses. Wall Street is clearly still reeling from last month's rocky trading, which resulted in the Nasdaq's biggest daily percentage drop since 2008. As the 10-year Treasury yield climbs to four-year highs near 3%, investors are looking ahead to the latest Federal Open Market Committee monetary policy statement, due out on Wednesday afternoon. 

Continue reading for more on today's market, including:

  • Why Robinhood stock fell to record lows.
  • This blue-chip oil stock brushed off a quarterly win.
  • Plus, ATVI jumps on Berkshire's raised stake; Moderna shares big vaccine news; and XPEV falls on delivery drop.  

futures may 2

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.2 million call contracts traded on Friday, and 948,281 contracts. The single-session equity put/call ratio rose to to 0.78, and the 21-day moving average stayed at 0.58.
  2. The shares of Activision Blizzard, Inc. (NASDAQ:ATVI) are up 2.4% ahead of the bell, after Warren Buffett announced that Berkshire Hathaway raised its stake in the company, and now owns roughly 9.5% of Activision Blizzard shares. ATVI has bucked the broad-market selloff, and sports a 12.1% lead for 2022.
  3. Moderna Inc (NASDAQ:MRNA) this morning announced that its Covid-19 vaccine for patients under six years of age is ready to be reviewed by a U.S. Food and Drug Administration panel meeting in June. MRNA's was last seen up 0.2% ahead of the bell, though it's lost 42% in 2022. 
  4. Xpeng Inc (NYSE:XPEV) is down 2.1% before the open this morning, after the Chinese automaker said its deliveries fell 42% month-over-month due to supply chain issues. The company did beat several rivals, which suffered far deeper month-over-month declines for April. XPEV has shed 15% in the last 12 months.
  5. Today brings the S&P Global U.S. manufacturing purchasing manager's index (PMI), the Institute for Supply Management (ISM) manufacturing index, and construction spending data.

OV Buzz Chart May 2

Chinese Manufacturing Data Weighs Overseas

Asian markets were lower to kick off the new month, following disappointing Chinese economic data for April, which showed factory activity contracting due to Covid-19 lockdowns, amid the country’s worst virus outbreak since March 2020. Japan’s Nikkei shed 0.1%, while South Korea’s Kospi settled with a 0.3% loss. Elsewhere, Hong Kong’s Hang Seng and China’s Shanghai Composite were both closed for a holiday.

China’s dismal manufacturing data is also weighing on European markets, while investors also digest last week’s selloff on Wall Street. Worse-than-expected German retail sales data for March and the Ukraine-Russia war are contributing to pessimism as well, with European Union (EU) leaders set to discuss an embargo on Russian oil this week. While London’s FTSE 100 is closed for a holiday, the German DAX is down 1.2%, and France’s CAC 40 is 2% lower.

 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

Numerous companies with connections to artificial intelligence have seen their stocks soar.

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Its stock has skyrocketed 716% since ChatGPT’s debut. But here’s the thing …

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Yet, these strange investments could be the early ripples of a massive wave …Without them, ChatGPT could stop operating … Amazon, Google, Microsoft and more could see profits drop drastically.

In fact, Elon Musk says these investments are critical when it comes to solving the number one problem facing AI.

Now, Silicon Valley legend Michael Robinson has identified two companies that could play a significant role in the solution.

Their stocks just may be the key to AI 2.0.

Find out more about these two companies today.
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