Dogecoin, Elon Musk, Pipeline Attack – 5 Things You Must Know
Here are five things you must know for Monday, May 10:
1. — Stock Futures Mixed After Further Wall Street Records
Stock futures traded mixed Monday following record highs for the Dow Jones Industrial Average and S&P 500 as a weaker-than-expected U.S. jobs report eased fears about rising inflation and bolstered the case for the Federal Reserve to retain low interest rates.
Contracts linked to the Dow rose 63 points, S&P 500 futures slipped 1 point and Nasdaq futures declined 36 points.
Oil prices rose and gasoline jumped as Colonial Pipeline, the operator of a major pipeline system that transports fuel across the East Coast, shut down operations because of a ransomware attack.
Tech shares led markets higher Friday after the U.S. added only 266,000 jobs in April, well below forecasts that called for close to 1 million. Investors believe the Fed will remain accommodative for longer following the weak jobs number.
For the week, the Dow rose 2.7%, the S&P 500 tacked on 1.2% and the Nasdaq fell 1.5%.
2.– This Week’s Calendar: CPI and Retail Sales, Disney Earnings
The U.S. economic calendar Monday is bare but later in the week will see the release of data on consumer prices, producer prices, jobless claims, retail sales, industrial production and consumer sentiment.
Earnings reports are expected Monday from Occidental Petroleum (OXY) – Get Report, Coty (COTY) – Get Report, Tyson Foods (TSN) – Get Report, Simon Property Group (SPG) – Get Report, Workhorse (WKHS) – Get Report, NortonLifeLock (NLOK) – Get Report, Marriott International (MAR) – Get Report, Novavax (NVAX) – Get Report and SmileDirectClub (SDC) – Get Report.
3. — Dogecoin Retraces Losses After Elon Musk’s ‘SNL’ Appearance
Dogecoin was retracing some of its losses following a plunge of as much as 40% after Tesla (TSLA) – Get Report CEO Elon Musk called the cryptocurrency a “hustle” during his guest-hosting spot on “Saturday Night Live.”
Dogecoin, the digital coin that started as a joke, traded at 51.65 cents, down 3%, but has risen about 5.5% over the past 24 hours, according to CoinGecko.
In one “Saturday Night Live” sketch, Musk, a cryptocurrency supporter, appeared as a bespectacled financial expert named Lloyd Ostertag – or the “Dogefather.”
When asked what is dogecoin, Ostertag gave an overview of the crypto, saying it’s “the future of currency. It’s an unstoppable financial currency that’s going to take over the world.”
But finally the punchline came when Musk’s character agreed, jokingly, to call it a “hustle.”
Meanwhile, ethereum, the No. 2 cryptocurrency behind bitcoin, has continued to rise, crossing $4,000. Ethereum has risen 38.7% over the past seven days, according to CoinGecko.
4. — Oil and Gas Prices Surge as Cyberattack Shuts Colonial Pipeline
West Texas Intermediate crude, the U.S. benchmark, rose 0.45% early Monday to $65.19 a barrel, and gasoline prices in New York surged more than 4% to the highest in three years after a cyberattack forced pipeline operator Colonial Pipeline to halt operations on Friday.
Colonial Pipeline said Sunday it was still working to restart operations.
“We are in the process of restoring service to other laterals and will bring our full system back online only when we believe it is safe to do so, and in full compliance with the approval of all federal regulations,” the company said in a statement.
The Colonial network is the main source of gasoline, diesel and jet fuel for the East Coast, with capacity of about 2.5 million barrels a day on its system from Houston as far as North Carolina, and another 900,000 barrels to New York, according to Bloomberg.
NBC News, citing two sources familiar with the matter, reported a Russian criminal group, known as DarkSide, may be responsible for the ransomware attack.
The FBI said Sunday on Twitter that it was aware of a “network disruption” at the Colonial Pipeline.
5. — Ford to Recall 661,000 Explorer SUVs
The recall came at the request of U.S. regulators. It covers versions of the SUV with 2016 to 2019 model years.
The recall so far covers SUVs only sold in the United States.