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

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

Brent futures were down $4.35, or 4.8%, at $86.11 a barrel at 10:09 a.m. EDT (1409 GMT), while US West Texas Intermediate (WTI) crude fell $4.58, or 5, 5%, to $78.91.

That puts both benchmarks in technically oversold territory and WTI on track for its lowest close since Jan. 1[ads1]0 and Brent on track for its lowest close since Jan. 13.

For the week, WTI was down approx. 7% and Brent down approx. 6%, the fourth consecutive week of decline for the benchmark indices, the first time this has happened since December.

Gasoline and diesel futures in the US also fell by more than 5%.

JetBlue Fleet Service workers want to organize. The International Association of Machinists and Aerospace Workers (IAM) says there is enough interest among the low-cost airline’s ground operations workers to hold a union election.

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

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

IAM is the largest airline union in North America and represents flight employees of all major US airlines.

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

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

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

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

U.S. stocks fell for a fourth day, with the Dow Jones Industrial Average falling below the key 30,000 level, as investors wrapped up a choppy week following the Federal Reserve’s 75 basis point interest rate hike. In commodities, oil fell by more than 4% to the level of $79 a barrel.

U.S. stock futures extended losses after three days of declines following several rate hikes by the Federal Reserve and other central banks to control persistent inflation, spurring fears of a possible global recession.

The major futures indexes suggest a 0.8% decline as Wall Street opens for trading.

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

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

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

Brent oil futures were trading around $89.00 a barrel.

For the week, contracts for TWI and Brent fell by 2.3% and 1.5% respectively.

In Asia, Hong Kong’s Hang Seng fell 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% Thursday to 3,757.99. The Dow Jones Industrial Average fell 0.4% to 30,076.68 and the Nasdaq Composite fell 1.4% to 11,066.81.

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

The National Football League announced 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, February 12, 2023 in Glendale, Arizona.

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

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

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

Like-for-like sales were up 13.7%, with e-commerce up 7.1%. Sales in the USA were 15.8%.

The average price of a gallon of gasoline rose again 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 decline.

Gas hit a high of $5.016 on June 14.

Diesel prices fell to $4,911 per gallon.

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

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

Brent oil futures were trading around $89.00 a barrel.

For the week, contracts for TWI and Brent fell by 2.3% and 1.5% respectively.

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

Bitcoin was trading 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% so far this year.

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

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