CNBC Daily Open: Recession fears remain | Real Time Headlines

This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Dow Jones rises, other indexes fall
US market Mixed Friday. this Dow Jones Industrial Average Rally hits new highs, but S&P 500 Index and Nasdaq Index dropped. Pan-European Stoxx 600 fell 1.42%dragged down by automobile stocks, fell 3.6%. After cutting 2024 guidance, Benz It fell more than 8%, but pared the loss to 1.6% by the close.

Qualcomm acquires Intel?
Qualcomm Recently contacted Intel for possible acquisition. It was unclear whether negotiations were continuing or the terms of a possible deal, the sources said. Considering Intel’s market capitalization of more than $90 billion, the deal, if successful, would be one of the largest technology acquisitions in history. Intel in recent years business in trouble.

Interest rate cut considerations
Federal Reserve Governor Christopher Waller said on Friday that he voted for a half-percentage point rate cut because “Inflation is softening much faster Michelle Bowman, who voted for a quarter-point rate cut, said in a statement that “the committee’s larger policy action could be interpreted as a premature declaration of victory on inflation.”

“As long as needed”
boeing company workers entered their Second week of strikeand may continue for some time. One worker, who spoke on condition of anonymity, said he had been saving money for months and was “holding on as long as I could” to get a better labor contract from Boeing. Aerospace analyst Ron Epstein said the strike is costing Boeing about $50 million a day.

(PRO) Test Power
Last week, stocks rose on a larger-than-usual interest rate cut. The Dow Jones Industrial Average and S&P 500 hit new highs. Whether they can sustain that momentum is another matter. There’s a lot of data this week, like Friday’s personal consumption expenditures index Will test stocksCNBC Pro’s Sarah Min writes.

The market seemed to acknowledge that the Fed’s sharp rate cut last week was because Central bank wants to keep job market healthy.

On Friday, some doubts appeared to resurface.

fedex The company’s shares plunged 15.2% after reporting first-quarter profit that missed expectations. This isn’t just bad news for the company and its investors.

The trucking company is seen as an economic bellwether. The higher the overall demand, the more transportation services are needed. So when FedEx misses revenue estimates, one likely conclusion is that the economy is not performing as well as expected.

Some analysts are also increasingly concerned about economic and market conditions.

Nancy Lazar, chief global economist at Piper Sandler, pointed out that the current easing cycle echoes what happened in 2001 and 2007, when the Fed’s first interest rate cut was also half a percentage point. But the first big cuts couldn’t avert the recession and global financial crisis of the early 2000s.

“On average, it takes 10 quarters after a rate hike for a recession to occur,” Lazar wrote. “This is the 10th quarter. Given the size of the rate hike and the reduction in the Fed’s balance sheet, the unemployment rate is likely to will reach 6%.

In financial markets, financial firm BTIG believes a pullback is possible. But Chief Market Technician Jonathan Krinsky said he was optimistic that “the weakness may be milder than we initially thought.”

Indeed, despite Standard & Poor’s Down 0.19% Nasdaq Down 0.36% on Friday Dow Chemical rose 0.09%, hitting a new closing high. All three indexes ended the week in the green.

Last week’s burst of optimism was largely driven by anticipation and celebration of a rate cut by the Federal Reserve. The market will be watching this week Hard data is outsuch as preliminary measures of PMI, consumer confidence and PCE reports. They will provide more clues as to whether this cut is indeed Recalibrateor reaction.

–CNBC’s Alex Harring, Hakyung Kim and Brian Evans contributed to this article.