Coffee With Greta: Stocks Jump Ahead Of Jobs Data
DJIA Futures: +21 (+0.1%)
SPX Futures: +9 (+0.2%)
NASDAQ Futures: +32 (+0.2%)
Good morning friends!
Futures are rising as traders prepare for key labor market data over the next few days.
Let’s get right to it!
Jamie Dimon Warns Banking Crisis Is Not Over
JPMorgan Chase (JPM) CEO Jamie Dimon says the banking crisis is still a threat and the regulatory process needs to be reimagined.
In his annual letter to shareholders on Tuesday, Dimon said, “As I write this letter, the current crisis is not yet over, and even when it is behind us, there will be repercussions from it for years to come.”
But he also said the recent issues are “nothing like what occurred during the 2008 global financial crisis.”
Dimon said regulation should be “less academic, more collaborative” moving forward.
He pointed out that the Fed’s recent bank stress tests didn’t appropriately assess the risk of a rapid rise in interest rates on government bonds.
Dimon said, “This is not to absolve bank management – it’s just to make clear that this wasn’t the finest hour for many players. All of these colliding factors became critically important when the marketplace, rating agencies and depositors focused on them.”
Oil Prices Rise
Oil prices are rising again today, extending the large gains seen on Monday.
West Texas Intermediate crude futures are up 0.8% at over $81 bbl while Brent crude futures are up 0.7% at over $85.50 bbl.
The gains come after OPEC+ voted to cut production over the weekend.
Those cuts have led most analysts to raise their Brent price forecasts to around $100 per barrel by year-end.
Virgin Orbit Files For Bankruptcy
Virgin Orbit (VORB) shares are plunging 20.6% ahead of the open after filing for Chapter 11 bankruptcy protection.
The company submitted that filing after failing to secure funding and CEO Dan Hart told employees it would cease operations last week.
In a statement today, he said, “While we have taken great efforts to address our financial position and secure additional financing, we ultimately must do what is best for the business.”
Virgin Orbit is looking to sell its assets with Hart saying, “We believe that the cutting-edge launch technology that this team has created will have wide appeal to buyers as we continue in the process to sell the Company. At this stage, we believe that the Chapter 11 process represents the best path forward to identify and finalize an efficient and value-maximizing sale.”
Coming Up: JOLTS
The first piece of key labor market data is set to be released today.
The Labor Department releases its job openings and labor turnover survey for February at 10:00 a.m. ET.
That survey is expected to show the number of job openings dropped to 10.5 million from 10.8 million in February.
In Case You Missed It
- Activity in the U.S. manufacturing sector declined more than expected in March. The Institute for Supply Management’s manufacturing PMI dropped to 46.3% from 47.7% in February. That was the lowest level since May 2020 and the fifth straight monthly decline. Any reading below 50% signals a contraction in the sector.