Retail sales, inventory rebound, colonial reboots

© Reuters.

By Geoffrey Smith – Stocks and other risky assets rebound after strong sell-offs, but April’s retail sales data will put market nerves to the test again. Colonial has restarted the pipeline that provides 45% of the East Coast’s gasoline and diesel supplies. The Mississippi shutdown continues to disrupt the flow of agricultural commodities, and both Disney and Airbnb are disappointing with their quarterly reports. Here’s what you need to know about the financial markets on Friday, May 14th.

1. Retail sales, industrial production data

Market nerves over inflation will be put to the test again by the release of April US data at 8:30 a.m. ET (12:30 GMT), which is expected to slow significantly after household stimulus checks fueled a frenzy of nationwide spending in March.

Overall sales are expected to have increased 1.0% for the month, while they are expected to have increased 0.7%. Anything significantly louder than that may rekindle concerns that the economy is already too hot for comfort, despite the Federal Reserve’s largely calming words this week.

data for April is also due at 9:15 a.m.ET, and will be analyzed for further evidence of capacity bottlenecks contributing to the current price squeeze.

2. Grains affected by the Mississippi blockade

A spectacular new bottleneck is fouling agricultural commodity markets. In Memphis, indefinitely, due to a cracking steel beam, effectively stopped two-way traffic on the Mississippi, the largest waterway in the United States and a crucial conduit for wheat, corn , soybeans and other crops.

The disruptions are likely to last until other market access routes can be established.

The United States rose 2.7% in overnight trading, while markets rose 2.2% and 1.2%, although these moves must be seen in the context of a massive and massive sale during the two previous sessions.

3. Stocks should rebound despite disappointments from Disney and Airbnb

US equity markets are expected to rebound substantially at the end of the week, recovering from the shock of a much higher than expected inflation stamp for April.

As of 6:30 am ET (10:30 am GMT), were up 135 points or 0.4%, while they were up 0.6% and up 1.1%. However, all three are still on track for their first synchronized negative week since early March.

Stocks likely to be the focus later include Airbnb (NASDAQ :), which Thursday was not enough to keep the stock from slipping after hours, and Disney, which followed Netflix (NASDAQ 🙂 in reporting disappointing growth in subscribers for its streaming. business after the bell.

Ali Baba (NYSE 🙂 will also be the focus of concern after declaring it to be a public company due to a Chinese antitrust fine.

4. Colonial restarts pipeline operations

The Colonial Pipeline Company ships some 2.5 million barrels of fuel to the U.S. east coast every day, a move designed to alleviate an increasingly acute regional gasoline and diesel shortage.

Bloomberg cited anonymous sources as saying that the company had agreed to pay the ransom demanded by hacking group DarkSide and that the decryption tool provided by the group to unlock its systems had not been effective. Instead, the company relied on system backups to restore operations. Elsewhere. Toshiba Corp. (T 🙂 became the last high profile company to say it was the by DarkSide.

Crude oil prices rose alongside other risky assets in overnight transactions, futures contracts up 0.9% to $ 64.38 per barrel and futures contracts up 0.9% % at $ 67.62 per barrel.

5. Musk back in the good books of DogeCoin Hodlers

recovered some ground after dropping in response to about its impact on the environment. By 6:30 a.m. ET, it had rebounded above the $ 50,000 mark, although it was still down about 14% on the week.

DogeCoin has been the main beneficiary of the crypto donkey reallocations. It rose 36% overnight after helping the founders of DogeCoin work on the energy efficiency of its transaction processing.

Musk’s Bitcoin reversal follows widespread ESG-themed investor criticism that has drawn attention to Bitcoin mining being largely powered by coal-fired power plants in China, undermining the core mission of the Musk’s automotive company in the fight against pollution and climate change.

About Catherine Sturm

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