Traders work on the floor of the New York Stock Exchange during morning trading on April 12, 2022 in New York City.
BY THE NUMBERS
U.S. stock futures pointed to sharp declines on Wall Street to start the new week after Friday's plunge. Concern deepened about just how aggressive the Federal Reserve will be with interest rates hikes to fight inflation, sending the Dow Jones Industrial Average down 981 points, or 2.8%, for its fourth straight negative week. The S&P 500 and the Nasdaq suffered similar losses, sinking roughly 2.8% and 2.6%, respectively, for their third straight negative weeks. The Nasdaq closed Friday in bear market territory. The 10-year Treasury yield on Monday backed away from last week's late 2018 highs over 2.9%. (CNBC)
Oil prices sank 4.5% on Monday, extending last week's decline, as concern mounted over how prolonged Covid lockdowns in Shanghai and further increases to U.S. rates might hurt global growth and crude demand. China's struggle to contain its worst Covid outbreak of the pandemic in its biggest city and as well rising cases in Beijing slammed Chinese stocks. (CNBC)
Coca-Cola (KO) on Monday reported quarterly earnings and revenue that topped expectations as consumers drank more of its trademark soda, Powerade and other beverages. Despite the suspension of its Russian business, the company reiterated its full-year revenue and earnings outlooks. This week is the busiest of the earnings season, with about 160 companies in the S&P 500 expected to report. (CNBC)
* CNBC's Investing Club: The week in review, the week ahead (CNBC)
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IN THE NEWS TODAY
Twitter (TWTR) shares jumped 5% in the premarket on reports the company could reach a deal with Elon Musk as early as today. Earlier this month, Musk offered to buy the social media company, which became more receptive after the Tesla (TSLA) and SpaceX CEO revealed $46.5 billion in secured financing. Twitter's board had met Sunday to discuss Musk's financing plan for his proposed bid, CNBC learned.
Musk's SpaceX will start providing wireless internet on Hawaiian Airlines (HA) flights from the Starlink satellite network as early as next year, a service the airline told CNBC it plans to offer to passengers for free. The deal marks the first for Musk's space company with a major airline. (CNBC)
Amazon (AMZN) workers on Monday are set to vote on whether to unionize a second warehouse in the New York City borough of Staten Island as organizing efforts at the online retail giant steam. Associates at a larger nearby facility known as JFK8 recently Amazon's first organized workplace in the U.S. (Reuters)
Money Report
U.S. Secretary of State Antony Blinken and Defense Secretary Lloyd Austin visited Ukraine and met with Ukrainian P:resident Volodymyr Zelenskyy. The trip to Kyiv was shrouded in secrecy and the highest-level visit to Ukraine by U.S. officials since the invasion began. America pledged just over $700 million in military financing to help Ukraine. (CNBC)
* Russia hits rail, fuel facilities in attacks deep in Ukraine (AP)
French President Emmanuel Macron won a second term in office, but political analysts see the continued rise of the far right causing him significant headaches over the coming years. Far-right rival Marine Le Pen got nearly 41.5% in Sunday's election, roughly 7.5 percentage points higher than last election. (CNBC)
STOCKS TO WATCH
Kellogg (K) dropped 1.8% after Deutsche Bank downgraded the stock to a hold. The bank cited the impact from workers' strikes, rising inflation and supply chain disruptions among the reasons for the downgrade.
Verizon (VZ) fell 1% after Goldman Sachs downgraded the stock to neutral. The bank said Verizon is situated well for 5G growth but offers a lower potential return compared to peers like AT&T.
Penn National Gaming (PENN) rose 2.8% after Morgan Stanley named it a buy despite its recent underperformance. The bank also sees opportunities in its Barstool Sports and theScore businesses.
Warner Bros. Discovery (WBD) fell 2.5% as investors continued to digest the news that the company would shutter its CNN+ service weeks after its launch.
Deere (DE) fell 3.4% after Bank of America downgraded the stock to neutral. The bank said it remains cautious on the farm economy and agricultural equipment space amid ongoing supply chain issues and other macro trends.
