STOCK MARKET NEWS: Futures add to declines, oil’s losing week

Oil prices plunged about 5% to an eight-month low on Friday as the U.S. dollar hit its strongest level in more than two decades and on fears rising interest rates will tip major economies into recession.

Brent futures were down $4.35, or 4.8%, to $86.11 a barrel by 10:09 a.m. EDT (1409 GMT), while U.S. West Texas Intermediate (WTI) crude fell $4.58, or 5.5%, to $78.91.

That puts both benchmarks into technically oversold territory and WTI on track for its lowest close since Jan. 10 and Brent on track for its lowest close since Jan. 13.

For the week, WTI was down about 7% and Brent down about 6%, the fourth straight week of declines for the benchmarks, the first time this has happened since December.

U.S. gasoline and diesel futures were also down more than 5%.

JetBlue Fleet Service workers want to unionize. The International Association of Machinists and Aerospace Workers (IAM) says there is enough interest among the discount air carrier’s ground operation workers to conduct a union representation election.

North America’s largest airline union announced it will file an election application with the National Mediation Board (NMB), the federal agency that conducts union representation elections in the airline and railroad sectors.

JetBlue workers have cited below-standard industry pay rates and benefits, poor and unsafe working conditions, unjustified discipline and terminations, among many other issues as reasons to gain IAM representation and a seat at the table, the IAM said.

The IAM is the largest airline union in North America and represents airline workers at every major U.S. airline.

Global government bond losses are on course for the worst year since 1949 and investor sentiment has plummeted to its lowest since the financial crisis, BofA Global Research said in a note on Friday.

This year’s dramatic bond tumble threatens credit events and a potential liquidation of the world’s most crowded trades, including bets on the dollar that have taken the greenback to multi-year highs against other currencies and bets on U.S. technology stocks, the bank said.

Bond funds recorded outflows of $6.9 billion during the week to Wednesday, while $7.8 billion was removed from equity funds and investors plowed $30.3 billion into cash, BofA said in a research note citing EPFR data.

Investor sentiment is the worst it has been since the 2008 global financial crash, the note said.

U.S. stocks fell for a fourth day, with the Dow Jones Industrial Average slipping below the key 30,000 level, as investors wind down a choppy week following the Federal Reserve’s 75 basis point rate hike. In commodities, oil fell over 4% to the $79 per barrel level. 

U.S. equity futures are adding to losses following three days of declines after more rate hikes by the Federal Reserve and other central banks to control persistent inflation spurred fears of a possible global recession.

The major futures indexes suggest a decline of 0.8% when Wall Street begins trading.

The yield on the 10-year Treasury, which influences mortgage rates, was at 3.68% on Friday.

Oil prices fell Friday amid recession fears and a stronger U.S. dollar, though losses were capped by supply concerns.

West Texas Intermediate (WTI) crude futures were trading around $83.00.

Brent crude futures traded around $89.00 per barrel.

For the week the contracts for TWI and Brent were down 2.3% and 1.5% respectively.

In Asia, Hong Kong’s Hang Seng sank 1.2% and China’s Shanghai Composite Index lost 0.7%. Japanese markets were closed for a holiday.

The S&P 500 lost 0.8% on Thursday to 3,757.99. The Dow Jones Industrial Average fell 0.4% to 30,076.68 and the Nasdaq composite slid 1.4% to 11,066.81.

This season’s Super Bowl halftime show will have a new sponsor.

The National Football League announced on Thursday that Apple Music is the new partner for the Super Bowl Halftime Show.

The multi-year partnership will begin with Super Bowl LVII, which will be played on Sunday, Feb. 12, 2023 in Glendale, Arizona.

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Costco shares traded 3% lower in premarket trading as operating expenses rose due to higher labor and freight costs.

The big-box retailer beat Wall Street revenue and profit estimates.

Fiscal fourth total revenue rose 15% to $72.10 billion. The analysts’ average estimate was $72.04 billion.

Comparable sales grew 13.7%, with e-commerce up 7.1%. U.S. sales were 15.8%.

The average price of a gallon of gasoline gained again on Friday to $3.689, according to AAA. Thursday’s price was $3.684, rising for the third day in a row after nearly 100 days of declines.

Gas hit a high of $5.016 on June 14. 

Diesel’s price slipped to $4.911 per gallon.

Oil prices fell Friday amid recession fears and a stronger U.S. dollar, though losses were capped by supply concerns.

West Texas Intermediate (WTI) crude futures were trading around $83.00.

Brent crude futures traded around $89.00 per barrel.

For the week the contracts for TWI and Brent were down 2.3% and 1.5% respectively.

Central banks around the world raised interest rates this week, raising the risk of economic slowdowns.

Bitcoin was trading at around $19,000, after snapping a four-day losing streak.

For the week, Bitcoin was lower by more than 1%. For the month, the cryptocurrency is down more than 4%.

Bitcoin is down more than 58% year-to-date.

Ethereum was trading at $1,300, after losing 10% in the past week.

Dogecoin was trading at 6 cents, gaining just over 1% in the past week.