5 things to know before the stock market opens Friday

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Here are the most important news, trends and analysis that investors need to start their trading day:

1. Wall Street set to drop after worst day for Dow, Nasdaq since 2020

A trader works on the trading floor at the New York Stock Exchange (NYSE) in New York, May 5, 2022.

Andrew Kelly | Reuters

U.S. stock futures dipped Friday ahead of the government’s April jobs report. The 10-year Treasury yield remained elevated, just below Thursday’s rise to over 3.1%, a high back to November 2018. Rising bond yields on Thursday sparked a stock market plunge that wiped out the prior day’s strong Federal Reserve relief rally and then some. The Dow Jones Industrial Average lost 1,063 points, or 3.1%, on concerns the Fed’s tightening cycle to slow the economy won’t get inflation under control. The tech-heavy Nasdaq fell nearly 5% to its lowest closing level since November 2020, falling further into a bear market. Both of those declines broke three-day winning streaks and were the worst single-day drops since 2020. The S&P 500 fell nearly 3.6% for its second worst day of the year. The S&P 500 and the Dow were in corrections.

2. Economists expect another month of strong jobs growth in April

The main event Friday morning is the 8:30 a.m. ET release of the Labor Department’s latest employment report. In another month of strong jobs growth, economists expect that 400,000 nonfarm payrolls were added in April, with the unemployment rate dipping to 3.5%. The wage component of the report could be the most important as financial markets freak out about inflation. Average hourly earnings in April are expected to have grown 0.4% month over month, or 5.5% on a year-over-year basis, around the same pace as in March. Contributing to Thursday’s stock market sell-off was the government’s first-quarter report showing the steepest decline in worker productivity in 75 years and soaring labor costs.

3. Oil jumps as EU considers Russian crude sanctions; bitcoin sinks

U.S. oil prices rose 2% on Friday, back above $110 per barrel, shrugging off concerns about global economic growth as proposed European Union sanctions on Russian oil raised the prospect of tighter supply. West Texas Intermediate crude, the American benchmark, and the Brent crude global benchmark were both on track for second straight weekly gains.

Bitcoin fell below $36,000 on Friday, one day after Wall Street’s nosedive. The world’s largest cryptocurrency, touted by proponents as an inflation hedge, remained correlated to the Nasdaq, falling or rising in tandem with tech stocks. Bitcoin has dropped nearly 50% from its all-time high of more than $68,000 in November, with risk assets slammed in 2022 by rising inflation, Russia’s war in Ukraine and tighter Fed policy.

4. FDA limits use of J&J’s Covid vaccine over blood clotting risks

The Food and Drug Administration has decided to limit the use of Johnson & Johnson‘s Covid vaccine for adults due to the risk of a rare blood clotting syndrome. The J&J’s vaccine is one of the three cleared for use in the United States. The FDA said Thursday the J&J shot can be administered in cases where Pfizer or Moderna Covid vaccines are not accessible or if an individual doesn’t want to get the other shots. The U.S. health agency said its analysis of the risk of clotting issues after receiving the J&J vaccine warrants limiting the authorization.

5. Under Armour sinks after issuing weak guidance, unexpected loss

Under Armour shares dropped almost 20% in Friday’s premarket, shortly after the sneaker and apparel maker issued a disappointing outlook for fiscal 2023. In its just ended March quarter, Under Armour reported an unexpected loss and sales that came in below Wall Street estimates. Global supply chain challenges and another round of Covid lockdowns in China put a dent in demand. A number of international corporations, including Apple and Estee Lauder, have warned in recent days that a drag from China’s Covid controls will hit their businesses.

— CNBC’s Hannah Miao, Jesse Pound, Tanaya Macheel, Vicky McKeever, Patti Domm and Lauren Thomas as well as Reuters contributed to this report.

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