Tuesday's trading: 5 things to know
Investors are watching economic data for clues about the Federal Reserve's path for raising interest rates
Here are the key events taking place on Tuesday that could impact trading.
TRADE BALANCE: The Commerce Department is out with the U.S. trade balance for April. The monthly deficit in goods and services is expected to narrow sharply to $89.5 billion. That’s down from a record $109.8 billion deficit in March on huge demand for imported goods, and rising prices tied to inflation.
SIFTING ECONOMIC DATA: Investors are watching economic data for clues about the Federal Reserve's path for raising interest rates. Fears that the Fed could aggressively raise rates and potentially drive the economy into recession have stoked volatility in global markets this year. While traders and consumers alike are looking for signs that inflation has peaked, the real issue is when inflation will come down to a more neutral rate and how much the Fed and other central banks will have to raise interest rates to get it there, said Siddharth Singhai, chief investment officer at IronHold Capital.
A JetBlue airliner lands past a Spirit Airlines jet on taxi way at Fort Lauderdale Hollywood International Airport on Monday, April 25, 2022. (Joe Cavaretta/Sun Sentinel/Tribune News Service via Getty Images / Getty Images)
WATCHING JET BLUE-SPIRIT OFFER: Shares of Spirit Airlines rose $1.46, or 7%, to $22.20 after JetBlue Airways sweetened its offer to buy the company. In May, JetBlue launched a hostile takeover of Spirit, which had already agreed to a merger with Frontier Airlines. Spirit's shareholders are set to vote on the Frontier merger proposal on Friday. Shares of JetBlue rose 22 cents, or 2.1%, to $10.69, while Frontier Group shares added 44 cents, or 4.5%, to $10.25.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JBLU | JETBLUE AIRWAYS CORP. | 5.71 | -0.06 | -1.04% |
| SAVE | SPIRIT AIRLINES INC. | 2.34 | -0.13 | -5.26% |
UK MARKETS: Overseas, the British pound rose 0.4% against the U.S. dollar to $1.2533 after Prime Minister Boris Johnson survived a no-confidence vote against his leadership on Monday. Johnson's poll ratings have fallen amid revelations that he held parties in Downing Street during COVID-19 lockdowns. The U.K.'s FTSE 100 rose 1% after being closed since Wednesday due to the four-day Platinum Jubilee weekend, celebrating Queen Elizabeth II's 70 years on the throne.
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U.S. MARKETS ROUNDUP: All major U.S. markets were up two of the last three sessions after Monday. The Dow was up 16.08 points Monday to 32,915.78. However, the Dow is off 10.55% from its record close of 36,799.65 on Tuesday, January 4, 2022. The Nasdaq was up 48.64 to 12,061.37, but remains off from its record close of 2442.74 hit Monday, November 8, 2021. Meanwhile, the S&P 500 was up 12.89 points or 0.31% Monday to 4121.43, but was off 14.08% from its record close of 4,796.56 hit Monday, January 3, 2022.