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    Stock futures are flat ahead of consumer confidence data

    Stock futures were flat in overnight trading ahead of Tuesday’s consumer confidence data and a big week for economic data.
    Futures on the Dow Jones Industrial Average and S&P 500 were flat, while Nasdaq 100 futures inched 0.1% lower.

    During Monday’s regular trading session, the Dow Jones Industrial Average rose 94.65 points or 0.27%. The S&P 500 climbed 0.7%, while the Nasdaq Composite gained 1.31%.
    The gains came amid a tech-heavy market rally during regular trading led by shares of Tesla, which rose 8% on news that it will ask shareholders to split its stock to pay dividends to investors.
    “I think anyone has to be impressed with the resiliency of the market and I go back to there is no alternative,” Erin Browne, PIMCO’s managing director and portfolio manager told CNBC’s “Closing Bell: Overtime” on Monday. “Do you want to invest in bonds when you know that the Fed is raising rates or do you want to invest in equities where you can get some type of dividend return, you can get real earnings growth and it’s gonna give you a comfortable return in your portfolios?”
    Meanwhile, the 5-year Treasury note rose above the 30-year on Monday, marking the first inversion since 2006. The shift stoked some recession fears, although economists typically watch the spread between the 2-year and 10-year rate, which remains positive.

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    Recession fears tied to Treasury yields are overblown, Canaccord's Tony Dwyer suggests

    Monday – Friday, 5:00 – 6:00 PM ET

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    Wall Street may be overestimating recession risks.
    While investors focus on an unnerving inversion between the five-year and 30-year Treasury Note yields, Canaccord Genuity’s Tony Dwyer is concentrating on optimistic activity in another part of the bond market.

    According to Dwyer, the three-month versus five-year yield shows a healthier picture of the U.S. economy because it steepened.
    “It measures the difference between what a banker lending institution gets its money at, what they have to pay, versus what they charge or invested at,” the firm’s chief market strategist told CNBC’s “Fast Money” on Monday. “We don’t look for a recession because of that yield curve that’s driving the lending is still very positive.”
    Dwyer acknowledges the overall bond market is reflecting economic challenges — but not enough to spark a recession.
    “The fear is definitely there. Asia seems to be a mess with more lockdowns. Europe is heading toward a recession, if not in one because of the once in a generation ground war there,” he said. “The U.S. is being affected by higher rates. So, it certainly is slowing down.”
    Dwyer expects the Federal Reserve to continue raising rates over the next few months.

    “There’s no question inflation is high. Rates are going higher,” Dwyer said. “The Fed is in a box. No matter the slowdown, they’ve got to raise rates.”
    He sees stocks as a hedge against inflation and plans to buy around weakness. Based on historical trends during similar backdrops, Dwyer believes the S&P 500 will be significantly higher this time next year.
    But for now investors may want to brace themselves for wild market swings.

    “We call it tumultuous”

    “We call it tumultuous,” said Dwyer, who believes volatility is an opportunity.
    He lists interest rate sensitive plays Big Tech and utilities as his best contrarian ideas. Dwyer predicts the slowing economy will provide some inflation relief in the year’s second half and put Fed rate hikes on pause.
    “The market seems to be almost pricing in a recession trade because the areas that should do the best with higher rates have been lagging,” Dwyer said.
    The S&P 500 closed at 4,575.52 on Monday and is off 4% so far this year.
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    Cramer's lightning round: I like Nucor over ArcelorMittal

    Monday – Friday, 6:00 – 7:00 PM ET

    It’s that time again! “Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed.

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    Enbridge Inc: “I like Enbridge. Wall Street doesn’t like it.”

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    ArcelorMittal SA: “It’s okay. Nucor’s better. Nucor’s a better company. I’m always going to go with Nucor because it’s best in breed.”
    Disclosure: Cramer’s Charitable Trust owns shares of Wells Fargo and Nucor.

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    Chinese EV maker Nio delivers its first ET7 electric sedans

    Nio delivered the first batch of ET7s to customers at its China headquarters on Monday.
    The ET7 is a sleek, upscale electric sedan loaded with advanced technology including a lidar sensor for self-driving.
    Nio plans to launch two more new models before year-end.

    Nio began deliveries of its new ET7, an upscale electric sedan, on Monday, March 28, 2022.

    Nio confirmed Monday it has begun deliveries of its new luxury sedan, the ET7, on schedule, sending U.S.-traded shares of the Chinese electric vehicle maker sharply higher.
    Nio’s shares closed at $21.21 on Monday, up 6.5% for the day.

    The company said in a statement that the first batch of ET7s was delivered to customers on Monday during an event at its headquarters in the city of Hefei, China.
    Nio began offering test drives in preproduction ET7s in early March. It said on Monday that users in more than 80 cities have tried the ET7, and that orders following test drives have been running at a rate higher than it expected. The company didn’t reveal how many orders it has received for the new model.
    The ET7 is the first new Nio electric vehicle to use the company’s second-generation architecture, called NT2.0. The new architecture has more robust computing power, allowing for new features including more advanced driver-assist systems. Two more new Nio models built on the NT2.0 architecture, a smaller sedan called the ET5 and an SUV called the ES7, will follow the ET7 later this year.

    Read more about electric vehicles from CNBC Pro

    In addition to the new architecture, the ET7 comes equipped with a suite of cameras and sensors, including an integrated lidar sensor. The sensors and added computing power will support Nio’s advanced driver-assist system and, eventually, fully autonomous driving.
    Nio confirmed that subscriptions to an automated highway-driving system similar to Tesla’s Autopilot will be available to ET7 owners in some regions beginning in the fourth quarter of 2022.  

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    I’m not buying KB Home stock until KB Home does, says Jim Cramer

    Monday – Friday, 6:00 – 7:00 PM ET

    KB Home is currently a risky stock to buy despite its low price, evidenced by the company’s own disinterest in purchasing its stock, CNBC’s Jim Cramer said Monday.
    “If KB starts buying back its stock aggressively, I’ll be right there with them. If they don’t, I’m staying on the sidelines,” the “Mad Money” host said.

    KB Home is currently a risky stock to buy despite its low price, evidenced by the company’s own disinterest in purchasing its stock, CNBC’s Jim Cramer said Monday.
    “If KB starts buying back its stock aggressively, I’ll be right there with them. If they don’t, I’m staying on the sidelines,” the “Mad Money” host said. KB Home CEO Jeffrey Mezger said on the company’s first-quarter earnings call on March 23 that the company will “navigate based on our operating needs” when asked why KB Home isn’t purchasing its own stock.

    KB Home’s earnings and top line missed Wall Street expectations in its first-quarter results, leading the stock to plummet from around $38 to about $33.
    The homebuilding company’s stock inched up 0.42% on Monday after it dropped to a new 52-week low earlier in the day. Wolfe Research downgraded KB Home from outperform to peer perform in the morning.
    While KB Home stock’s low price might be enticing to investors, Cramer said it is a red flag.
    “The homebuilders are cyclical stocks that rise and fall with the broader economy. Cyclicals get this cheap when Wall Street’s worried about the earnings estimates,” he said.
    Cramer also expressed concern about 30-year U.S. Treasury bonds yields, which have risen to their highest level since mid-2019. The yield changes are “the most important benchmark for mortgage rates and a hawkish Federal Reserve will only push it higher,” he said. 

    The Federal Reserve is expected to take several interest rate hikes this year after approving a quarter-percentage-point interest rate in March, with some traders expecting more aggressive increases after Fed Chair Jay Powell vowed earlier this month to take a strong stance against soaring inflation.
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    Jim Cramer says investors should use these rules to build a turbulence-proof portfolio

    Monday – Friday, 6:00 – 7:00 PM ET

    Investors should follow a certain set of rules when building their portfolios to weather the market volatility that Monday’s rally suggests could happen, Jim Cramer said.
    On the heels of the market gains, Cramer listed rules investors should consider to successfully weather potential market turbulence down the line.

    Investors should follow a certain set of rules when building their portfolios to weather the market volatility that Monday’s rally suggests could happen, Jim Cramer said.
    “When you see new, unseasoned merchandise exploding higher, along with names like Tesla surging on … a stock split, it tells you there might be a little too much excitement, a little too much froth, for the entire market. One or two of these runs would be fine, but when you see all of the speculative assets roaring in an overbought market,” prepare for some turmoil, the “Mad Money” host said.

    Tesla is looking to split its stock to pay a stock dividend to shareholders, according to a filing Monday. The news led to Tesla stocks rising 8%, leading a tech rally for the day that included names like Microsoft and Amazon.
    The Dow Jones Industrial Average gained 0.27%, while the S&P 500 rose 0.7%. The Nasdaq Composite increased 1.3%.
    The Cboe volatility index, Wall Street’s fear gauge, closed below 20 for the first time since mid-January.
    On the heels of the market gains, Cramer listed rules investors should consider to successfully weather potential market turbulence down the line. Here are his suggestions:

    The most important rule is to own an oil stock, since fuel prices are increasing. “My favorites are Chevron for a steady dividend. It’s pulled back too, and Devon [Energy] also pulled back, which pioneered a new way to reward shareholders,” Cramer said.
    Choose some low price-to-earnings multiple stocks. Cramer said Google-parent Alphabet and Facebook-parent Meta, both at “historically cheap valuations,” are good options that can withstand soaring inflation.
    Consider a health care stock that can do well even if the Federal Reserve’s interest rate hikes slow the economy down. “My favorite remains Eli Lilly,” Cramer said.
    Own stock of a consistent retailer that can keep ahead of inflation. Cramer recommended Costco and said to avoid Dave & Buster’s.
    Own one or two speculative stocks, but be careful. “I think it’s a great way to stay interested in the stock market. … But if you’re going to speculate, you have to be prepared for the possibility that these stocks could go to zero. Never buy something like AMC or GameStop with money you can’t afford to lose,” Cramer said.

    Disclosure: Cramer’s Charitable Trust owns shares of Amazon, Microsoft, Alphabet, Meta, Chevron, Devon, Eli Lilly and Costco.

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    Oil slides more than 8% as Shanghai lockdown prompts demand fears

    Oil prices dropped more than 8% at one point on Monday as new lockdowns in Shanghai prompted fears of a slowdown in demand.
    “Today’s price slide is attributable first and foremost to concerns about demand now that the Chinese metropolis of Shanghai has entered into a partial lockdown,” said Commerzbank.
    China is the world’s largest oil importer.
    Another round of peace talks between Russia and Ukraine also weighed on prices.

    Andrey Rudakov | Bloomberg | Getty Images

    Oil declined more than 8% at the lows of the day on Monday as concerns over new lockdowns in China and the potential impact on demand sent prices tumbling.
    West Texas Intermediate crude futures, the U.S. oil benchmark, slipped 8.25% to trade at $104.50 per barrel. International benchmark Brent crude traded 7.4% lower at $111.61 per barrel.

    However, both contracts recovered some losses during afternoon trading on Wall Street. WTI ended the day at $105.96 for a loss of about 7%. Brent settled 6.77% lower at $112.48 per barrel.

    “Today’s price slide is attributable first and foremost to concerns about demand now that the Chinese metropolis of Shanghai has entered into a partial lockdown,” Commerzbank said Monday in a note to clients.
    China is the world’s largest oil importer, so any slowdown in demand will weigh on prices. The nation uses around 15 million barrels per day, and imported 10.3 million barrels per day in 2021, according to Andy Lipow, president of Lipow Oil Associates.
    “The magnitude of [the] sell-off reflects fears that Covid lockdowns in China could spread, significantly impacting on demand at a time when the oil market is trying to find alternatives to Russian oil supplies,” Lipow said Monday.
    Another round of peace talks between Ukraine and Russia is slated for this week, which Commerzbank said was also contributing to oil’s slide.

    Crude is coming off its first positive week in the last three, with WTI and Brent ending the week 8.79% and 10.28% higher, respectively.
    The oil market has been marked by heightened volatility since Russia’s invasion of Ukraine at the end of February. Prices shot above $100 per barrel the day of the invasion and kept climbing. WTI topped $130, rising to its highest level since 2008, while Brent almost reached $140.

    But prices didn’t remain there for long, and on March 14 WTI traded under $100. The volatile action reflects, in part, the many unknowns around the future of Russia’s oil.
    The International Energy Agency warned that three million barrels per day of Russian oil output is at risk come April as Western sanctions prompt buyers to shun the nation’s oil. But analysts have noted that Russian oil is still finding buyers for the time being, especially from India.
    Traders say the recent volatility also stems from non-energy market participants using crude as an inflation hedge. In recent weeks, open interest has decreased, making the market susceptible to even larger intraday swings.
    Despite Monday’s slide, oil held above $100.
    “We still expect that Brent crude will continue to rally as the market continues to price in a rise in energy supply risk amid immense supply disruptions,” TD Securities said Monday.
    “The right tail in energy markets is still fat… The set-up is still ripe for higher energy prices,” the firm added.

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    The Oscars ceremony was a mess even before Will Smith slapped Chris Rock

    Sunday’s 94th Academy Award ceremony was already marred with controversy even before Will Smith slapped Chris Rock on stage.
    Producers decided to present eight of the 23 awards before the live broadcast began and then edit those winners into the show later. The broadcast still ran long.
    Fan-voted categories, live musical performances and oddly upbeat in memoriam segment aren’t likely to save the Oscars from poor ratings.
    The academy on Monday condemned Smith’s assault on Rock and opened a review of the incident.

    Sunday’s 94th Academy Award ceremony was already a ham-handed attempt at boosting ratings even before the soon-to-be Oscar-winning actor Will Smith slapped Chris Rock on stage.
    The event should have been a celebration of diversity. Ariana DeBose became the first queer woman of color to win an acting award, Troy Kotsur was first deaf man to win an Academy Award for acting, and Jane Campion became the third woman to win in the directing category.

    It should have also been a watershed moment for the streaming industry. AppleTV+’s “CODA” became the first movie from a streamer to win best picture.
    Instead, audiences will remember the 2022 Academy Awards as the time a nominated actor slapped a presenter for making a crass joke about his wife. (The academy on Monday condemned Smith’s actions and opened a review of the incident.)
    The broadcast drew around 15.36 million viewers, according to preliminary national ratings from Nielsen reported by The Hollywood Reporter. This does not include out-of-home viewing, which will be added in the final numbers released Tuesday.
    These early figures are higher than the final numbers from 2021’s ceremony, which hit an all-time low of 10.4 million viewers. Yet they’re still dramatically lower than where Oscars ratings traditionally end up, and it’s only the second time the show has drawn under 20 million viewers, according to THR. Awards shows in general are experiencing declining ratings. So the academy still has a lot of work to do.

    Bad cut-and-paste job

    Smith’s slap wasn’t the only folly of the production. The ceremony was marred by controversy even before it began. Producers decided to present eight of the 23 awards before the live broadcast began and then edit those winners into the show later.

    These awards were predominantly from technical categories like sound, score, editing and production design, but also included three categories designated for short-form work. This prompted more than 70 industry titans, including composer John Williams and directors James Cameron and Guillermo del Toro to petition the Academy of Motion Picture Arts and Sciences and ABC, which broadcast the ceremony, to reverse the decision.
    Instead, the eight winners of these categories were announced on Twitter during the red carpet festivities and then shoehorned into the live broadcast with haphazard cuts to audience members, some of whom were still taking their seats for the show.
    Not recognizing these categories during the main show is a public rebuff of the often undercelebrated crew members who are the bedrock of Hollywood and its films. This is particularly objectionable considering Hollywood only narrowly avoided a massive film and television crew strike less than six months ago over poor pay and benefits.
    The producers of the broadcast claimed these categories were cut to shave time off the broadcast, which often exceeds three hours. However, the show still ran long, surpassing the promised three-hour mark by nearly 40 minutes.
    Perhaps even more baffling was the producers’ decision to use the time saved from not showing eight award winners walking up to the stage to insert two fan voted honorary awards for “best cheer moment” and “fan favorite film.”
    These online polls were meant to drum up excitement for audiences to tune in to the ceremony, but left many scratching their heads as Zack Snyder’s “Justice League” won best fan moment for the Flash entering the speed force and “Army of the Dead” won for favorite film of 2021.

    A trifecta of hosts can’t save the night

    The show kicked off with a performance by Beyonce of the nominated song from “King Richard,” “Be Alive,” before segueing into a three host monologue by Amy Schumer, Wanda Sykes and Regina Hall.
    “This year, the academy hired three women to host because its cheaper than hiring one man,” Schumer said.

    Amy Schumer, Wanda Sykes and Regina Hall host the 94th annual Academy Awards.
    Abc | Disney General Entertainment Content | Getty Images

    Schumer performed a second monologue after Sykes and Hall left the stage, roasting nominated films such as “Don’t Look Up” and “Being the Ricardos” to uproarious applause and laughter. She was the standout of the three hosts and easily could have handled hosting the show solo.
    Hall’s bit, on the other hand, fell flat. When she reappeared alone later in the show, she called up Bradley Cooper, Timothee Chalamet, Tyler Perry and Simu Liu onstage for a Covid-testing gag that involved her swabbing “the back of your mouth with my tongue.”
    It concluded with her giving Josh Brolin and Jason Momoa a pat-down as they appeared on stage to present the next award. It elicited awkward laughs from the crowd, and it was clear not all participants were comfortable with the bit.
    Sykes was forgettable. Her main solo bit involved a pretaped trip to the Academy Museum of Motion Pictures, which drew laughs, but ultimately felt like what it was — an advertisement for a $482 million museum.
    The hosts were largely absent during the second half of the show, save for a quick bit where they each dressed as a character from a nominated film. Sykes was dressed as Richard Williams from “King Richard,” Hall was dressed as Tammy Faye from “The Eyes of Tammy Faye,” and Schumer descended from the rafters on wires dressed as Spider-Man from “Spider-Man: No Way Home.”
    None of the hosts appeared on stage immediately after the Smith-Rock incident, but Schumer later attempted to inflate the crowd during the third hour after the air was let out of the room, but even her quips weren’t enough to turn the night around.

    The future of the Academy Awards

    Fan-voted categories, live musical performances and oddly upbeat “in memoriam” segments aren’t going to save the Oscars from poor ratings.
    All awards ceremonies across the board from music to TV have suffered in recent years. Audiences have more choices than ever for how to spend their time and what entertainment they want to consume.
    There are some that have tuned out these shows because they don’t like watching celebrities make political and social statements and some that have little interest because the films that are nominated aren’t considered mainstream.
    No to mention, younger viewers, many of whom have cut cable, aren’t as willing to sit through the traditional 16 to 20 minutes of commercials per hour that comes with a live TV telecast. A three-plus-hour show like the Oscars can mean an hour worth of ads.
    However, that doesn’t diminish the importance of the Oscars. Not only is it an honor bestowed upon by peers in the film community, but it is also a financial boon. Nominees and winners can leverage their accolades to get better pay or to get passion projects greenlit by major studios.
    At this point, the academy clearly cannot cater to both the film community and the mainstream moviegoing audience. Ratings are not going to climb back to the levels seen a decade ago, and the current strategy to drum up interest isn’t working. In fact, it’s alienating and angering the very people it is supposed to celebrate.
    The 2017 Oscars will be remembered for “La La Land” accidentally being called best picture instead of “Moonlight,” which actually won. The 2021 show will be marred by the production assuming the late Chadwick Boseman would win best actor and placing the award at the end of the ceremony. The 2022 Oscars will likewise be remembered for a slap.
    Not that queer woman of color who made a passionate statement about accepting your identity or a deaf actor humbly accepting an award on behalf of his community. Not for a woman succeeding in a traditionally male-won category. Not for a streamer winning the best picture trophy and potentially speeding up an already dramatic change in the industry.
    But for a slap.

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