Here are five things you need to know for Monday June 14th:
1. Stock futures rise with a view to the Fed
Stock futures rose modestly on Monday as the S&P 500 hit another record high and Wall Street prepared for a key Federal Reserve meeting later this week.
Contracts linked to the Dow Jones Industrial Average rose 12 points, S&P 500 futures rose 5 points, and Nasdaq futures rose 55 points.
The S&P 500 hit its second record high in a row on Friday, with investors pointing to the Federal Reserve’s stance that spikes in inflation will prove temporary.
Over the course of the week, the Dow fell 0.8%, the S&P 500 rose 0.4% and the Nasdaq rose 1.8%.
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The big event this week will be an announcement by the Federal Reserve’s Monetary Policy Board, the Federal Reserve’s Open Markets Committee, on Wednesday on interest rates, followed by a news conference by Fed Chairman Jerome Powell.
While the US Federal Reserve is unlikely to take any action on interest rates or a reduction in monthly security purchases, Wall Street will be watching the meeting closely to determine the Fed’s inflation projections and the strength of the economic recovery.
The benchmark 10-year Treasury return rose to around 1.464%. Last Thursday it hit a three-month low.
2. – This week’s calendar: Fed meeting
The US economic calendar is blank on Monday, but data on retail sales, producer prices, manufacturing and industrial output will appear later in the week.
The Federal Reserve’s rate announcement comes on Wednesday at 2 p.m. ET. Fed Chairman Jerome Powell will hold a press conference that day at 2:30 p.m.
Results reports are expected from Oracle this week (ORCL) – Get the Oracle Corporation report, Adobe (ADBE) – Get Adobe Inc. report, Lennar (LEN) – Get the Lennar Corporation Class A Report and Kroger (KR) – Get report from Kroger Co..
3.- Tesla will accept Bitcoin again when mining is cleaner
Bitcoin rose to over $ 39,000 after Tesla (TSLA) – Get the Tesla Inc report CEO Elon Musk
said his electric vehicle company will resume transactions with the world’s largest cryptocurrency if mining is done with more “clean energy use”.
“If there is confirmation of a reasonable (~ 50%) clean energy consumption by miners with a positive future trend, Tesla will allow Bitcoin transactions again,” Musk said in a tweet on Sunday.
The tweet was in response to another post suggesting that Musk’s back and forth positions in the cryptocurrency were recently “market manipulation”.
Bitcoin was up 9.67% to $ 39,102 early Monday, according to CoinDesk. It has been wildly trading since the record high of $ 64,829 in mid-April.
Much of Musk’s Twitter posts and comments have been linked to recent ups and downs in the digital currency.
4. AMC and other meme stocks trade higher
Meme stocks like AMC Entertainment (AMC) – Receive AMC Entertainment Holdings, Inc. Class A Report rose in pre-trading on Monday, extending last week’s gains.
AMC, which has become a favorite with retail audiences, rose more than 3% to $ 50.91 after rising more than 15% on Friday. The stock rose 3.1% last week.
The cinema chain received an upgrade from S&P Global last week thanks to their continued efforts to raise cash and pay off pandemic-related debts.
GameStop (GME) – Get the GameStop Corp. Class A Report rose 1.68% to $ 237.26, extending gains on Friday by 5.9%.
Some new meme favorites, like Clean Energy Fuels (CLNE) – Get the report from Clean Energy Fuels Corp. and ContextLogic (WISH) – Receive ContextLogic, Inc. Class A Report also traded higher.
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5. Mall operator Washington Prime files Chapter 11 bankruptcy
Washington Prime Group (WPG) – Get the Washington Prime Group Inc. report, a real estate investment trust that operates about 100 malls, filed for Chapter 11 bankruptcy after the COVID-19 pandemic wrecked the brick and mortar retail sector.
The company will continue to operate under its restructuring agreement. It secured an debtor loan of approximately $ 100 million.
Washington Prime estimated its net worth at about $ 4 billion with a debt of nearly $ 3.5 billion.
“The COVID-19 pandemic has posed significant challenges for many companies, including Washington Prime Group, requiring a Chapter 11 filing to reduce the company’s outstanding debt,” the company said in a statement.
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