Here are the top news, trends, and analysis investors need to start their trading day:
1. Stocks look stable as Wall Street tries to rally again
The New York Stock Exchange welcomes Clear Secure, Inc. (NYSE: YOU) executives and guests to celebrate its IPO on June 30, 2021.
US stock futures were relatively flat on Wednesday, a day after the Nasdaq closed another record high while the S&P 500 broke a seven-session winning streak. The Dow Jones Industrial Average – which, like the S&P 500, closed with a record Friday – started the vacation-shortened week with a winning streak of four sessions. Concerns that the best of the economic recovery from the Covid pandemic might be in the rearview mirror weighed on sentiment. US oil prices rose on Wednesday after rising to a six-year high on Tuesday became its worst session since May. OPEC and its oil-producing allies unsettled the market by indefinitely postponing talks on production policy.
2. Bond yields fall ahead of the Fed minutes’ release this afternoon
Federal Reserve Chairman Jerome Powell during a House Financial Services Committee hearing in Washington on December 2, 2020.
Swimming pool | Getty Images News | Getty Images
The 10-year Treasury bond yield fell 1.34% early Wednesday before the minutes of the June Federal Reserve Monetary Policy Committee were released that afternoon. Traders will be looking for more clues as to why central bankers have postponed their rate hike schedule, with most of the panel’s 18 members forecasting two in 2023. In fact, seven members may already be looking at the Fed by next year. It’s going to be a busy summer for Fed observers. Chairman Jerome Powell will testify on Capitol Hill next week, about two weeks before the Fed’s July meeting. The Jackson Hole Economic Policy Symposium, sponsored by the Kansas City Fed, will be held in Wyoming from August 26-28.
3. Mortgage demand falls to its lowest level since the beginning of the pandemic
A home for sale in Susanville, CA on Wednesday June 9, 2021.
Gary Coronado | Los Angeles Times | Getty Images
Mortgage demand fell for the second straight week as low inventory levels and high home prices continued to weigh on the hot property market. Mortgage applications fell 1.8% last week, according to the Mortgage Bankers Association’s seasonally adjusted index, to their lowest level since early 2020, before the coronavirus pandemic hit the economy. Both refinancing and purchase demand suffered a slump, although mortgage rates fell. Home purchase requests were down 1% on the week, down 14% year over year. Refis fell 2% in the week and 8% year over year.
4. Didi has been removed from China’s WeChat, Alipay apps for new users
Budrul Chukrut | LightRakete | Getty Images
Shares in Chinese ride-hailing giant Didi fell another 4% in the premarket on Wednesday as the company’s main app was removed from Tencent’s WeChat messaging service and Ant Group’s Alipay for new users. Didi plunged 19.6% to $ 12.49 per share Tuesday after China announced a cybersecurity review of the company. Didi went public on the New York Stock Exchange exactly a week ago at an initial price of $ 14 per share. The crackdown on Didi continues Beijing’s aggressive crackdown on China’s tech companies, from canceling the Ant Group IPO last year for $ 34.5 billion to a $ 2.8 billion antitrust fine for Alibaba.
5. The satellite image company Planet Labs goes public
Co-founder and CEO Will Marshall
The satellite image and data specialist Planet Labs is preparing to go public and is merging with a SPAC as part of a deal with the support of Alphabets, Google, BlackRock and Salesforce co-founder Marc Benioff. Planet Labs is merging with the special purpose vehicle dMY Technology Group IV, which is traded on the NYSE under the ticker DMYQ. “We’re a mature company with a huge new and unique data set of our 190 satellites, the largest earth-taking fleet ever, and more than ten times the size of any other,” Will Marshall, co-founder and CEO of Planet Labs, told CNBC. The DMYQ share rose almost 2% in pre-trading.
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