Coffee With Greta: Recession Fears Return


DJIA Futures: -127 (-0.4%)

SPX Futures: -23 (-0.6%)

NASDAQ Futures: -101 (-0.8%)

Good morning friends!

Futures are falling as recession fears grip Wall Street.

Let’s get right to it!

Recession Fears Return

Stocks are falling ahead of the opening as traders grow more concerned about a recession. 

The March jobs report on Friday continued to show job growth slowing.

The Labor Department reported the U.S. economy added 236,000 jobs last month while the unemployment rate ticked lower to 3.5%. 

That compared to expectations for 238,000 jobs and a 3.6% unemployment rate and was down from 326,000 jobs in February. 

Average hourly earnings rose 0.3% monthly and 4.2% year over year, the smallest annual increase since June 2021.

The market is looking ahead to key inflation data this week with the March CPI on Wednesday, PPI on Thursday, and retail sales on Friday.

That data will help traders determine what the Fed may do at the May 3 meeting but currently CME Group’s FedWatch Tool shows 66.7% betting on another 25 basis point rate hike.

Earnings season also kicks off this week with reports from big banks like JPMorgan Chase (JPM), Wells Fargo (WFC), and Citigroup (C) at the end of the week.

Pioneer Jumps On Potential Exxon Merger

Pioneer Natural Resources (PXD) shares are rallying 6.1% ahead of the open following reports that Exxon Mobil (XOM) is in talks to purchase the oil driller. 

The Wall Street Journal first reported that the two companies have held informal talks so far.

Exxon executives have also reportedly discussed a merger with at least one other company. 

XOM shares are down 1.0% in premarket trade.

Tesla To Open New Megafactory In Shanghai

Tesla (TSLA) shares are falling 2.8% ahead of the open after the company said it will open a new Megafactory in Shanghai. 

In a tweet on Sunday, Tesla said the new factory will be capable of producing 10,000 Megapacks per year. 

Megapacks are large-scale batteries used for battery storage at power stations.

Tesla reportedly plans to begin construction on the Shanghai facility in Q3 and aims to start production in mid-2024.

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