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Here are the most important news, trends and analysis investors need to start their trading day:
1. Dow Expected to Open Lower Before Day Two of Powell’s Testimony
Traders on the floor of the New York Stock Exchange.
Source: NYSE
Dow futures fell 150 points on Thursday, a day after the S&P 500 hit a record high but failed to close at a record high. In a muted session, the Dow Jones Industrial Average ended slightly higher and the Nasdaq ended slightly lower. Both benchmarks were within 1% of their closing highs on Monday. Federal Reserve Chairman Jerome Powell is due to deliver his semi-annual economic testimony to the Senate Banking Committee on Thursday. He told the House committee on the finance committee on Wednesday that the Fed was still a long way from changing monetary policy. He also said he expects inflation to moderate even as this week’s latest readings of consumer and wholesale prices have risen.
2. Bond yields fall after weekly jobless claims figures
Bond yields fell on Powell’s conciliatory message on Wednesday. The 10-year Treasury yield continued to decline Thursday to around 1.32%. The Labor Department reported that the first jobless claims for last week stood at 360,000 as expected – a new low in the Covid era. Initial claims, which unexpectedly rose for the week ended July 3, have been revised up. All of this data came after the government’s June jobs report, which showed the US economy had generated 850,000 better-than-expected off-farm jobs.
3. Morgan Stanley becomes last bank to beat quarterly estimates
Signage for Morgan Stanley is displayed at the company’s headquarters in New York City.
Victor J. Blue | Bloomberg | Getty Images
UnitedHealth Group Inc. is headquartered in Minnetonka, Minnesota, USA
Mike Bradley | Bloomberg | Getty Images
UnitedHealth reported higher than expected quarterly earnings Thursday morning. In the second quarter, America’s largest health insurer reported a medical loss ratio – the percentage of collected premiums spent on services – of nearly 83%. This compared to 70% a year earlier, when patients postponed elective care due to the pandemic. UnitedHealth has also raised its annual profit target. Dow stock fell 0.4% in pre-market trading.
4. The volatile actions of AMC and GameStop memes are a big hit
AMC Entertainment shares fell another 6% pre-market on Thursday, indicating a fifth straight session of losses, a day after falling 15%. The volatile action of memes has lost 30% in the last four sessions of decline. At Wednesday’s close, AMC shares lost more than half of their value after hitting a record high of $ 72.62 on June 2.
GameStop, the original stock of memes, fell more than 21% this month, and it continued to decline in the pre-market as the reality of bubble-like gatherings and failed businesses began to become evident for investors obsessed with Reddit. However, for 2021, AMC was still up over 1,450% and GameStop almost 800%.
5.Gm warns some Bolt EV owners not to park indoors, charge unattended
Vermont State Police released this photo of the 2019 Chevrolet Bolt EV that caught fire on July 1, 2021 in the driveway of State Representative Timothy Briglin, a Democrat.
Vermont State Police
General Motors is telling 2017-2019 Bolt EV owners who were part of a recent recall not to park their vehicles indoors or charge them unattended overnight. The warning comes after two Bolt EVs caught fire. These vehicles had been repaired as part of a recall of nearly 69,000 vehicles reported for fire risks. The recall was originally announced in November by GM and the National Highway Traffic Safety Administration. One of the Bolt EV fires occurred as the vehicle was charging at the home of a Vermont state lawmaker earlier this month. The other fire occurred in New Jersey.
– Reuters contributed to this report. Follow all the market action like a pro on CNBC Pro. Get the latest pandemic news with CNBC’s coronavirus coverage.
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