5 things to know before the stock market opens Friday

5 things to know before the stock market opens Friday

1. Futures mixed after Fed’s Powell knocked markets for a loop

Pedestrians walk past the NASDAQ MarketSite in New York’s Times Square.
Eric Thayer | Reuters

U.S. stock futures were mixed Friday, one day following an afternoon market sell-off on hawkish comments from Federal Reserve Chairman Jerome Powell, which wiped out strong morning gains. Rising bond yields, which continued Friday, hit the Nasdaq particularly hard Thursday, with the tech-heavy index dropping 2% in a second straight session of big losses. The Nasdaq remained in a sharp correction and was close to bear market territory, defined by a drop of 20% or more from recent highs. The index last closed at a record in November.

2. Bond yields soar as a hawkish Powell confirms recent Fed chatter

The benchmark 10-year Treasury yield on Friday neared 3% as the short end of the yield curve saw the 5-year top that level as Powell confirmed what many other Fed officials have said lately that interest rates may need to be increased at a stronger pace to fight inflation. During an International Monetary Fund panel discussion Thursday moderated by CNBC’s Sara Eisen, the Fed chief said that “50 basis points will be on the table for the May meeting.” The central bank raised rates by 25 basis points at its March meeting, the first hike in more than three years. The market expects rate increases at each of the remaining six meetings in 2022.

3. Gap shares sink on outlook cut, Old Navy head departure

Shares of Gap sank roughly 15% in Friday’s premarket, the morning after the clothing retailer cut its growth outlook due to increasing competition and more promotions. The company also announced that the CEO of its Old Navy division, Nancy Green, is leaving her post. In addition to Old Navy and its namesake brand, Gap is also behind the Banana Republic and Athleta lines. Gap said it will provide an updated fiscal 2022 outlook when it reports quarterly results, scheduled for May 26.

4. CNN+ will shut down April 30, just one month after launch

Warner Bros. Discovery is shutting down CNN+ at the end of the month, just weeks after the stand-alone streaming news service launched. The company said customers will get prorated refunds on subscription fees. CNN+ garnered fewer than 10,000 daily active viewers in the two weeks after its start. The service was rolled out shortly before AT&T‘s then-WarnerMedia unit and Discovery completed their merger on April 8. Warner Bros. Discovery hasn’t officially outlined its streaming ambitions yet, but as CNBC has previously reported, the goal is to combine HBO Max and Discovery+ with other programming from WarnerMedia.

5. Florida Republicans vote to dissolve Disney’s special district

The Republican-led Florida Legislature has passed — and sent to Gov. Ron DeSantis — a bill seeking to dissolve a special district that allows the Walt Disney Co. to self-govern within the outer limits of Orange and Osceola counties. Widely seen as a contender for the 2024 GOP presidential nomination, DeSantis is locked in a bitter feud with Disney over the entertainment giant’s denouncement of Florida’s so-called Don’t Say Gay law, which limits early education teachings on sexual orientation or gender identity.

— CNBC’s Yun Li, Jeff Cox, Peter Schacknow, Lauren Thomas, Alex Sherman and Sarah Whitten contributed to this report.

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