Here are five things you need to know for Monday June 21st:
1. – Stock futures rise on Monday
Stock futures rose Monday as investors processed signals from the Federal Reserve last week that they might hike interest rates and begin curbing asset purchases earlier than expected.
Contracts linked to the Dow Jones Industrial Average gained 210 points, S&P 500 futures rose 19 points and futures on the technology-heavy Nasdaq rose 65 points.
The S&P 500 ended its worst week since February on Friday after St. Louis Federal Reserve Bank President James Bullard said the central bank had started talks to reduce monthly bond purchases by $ 120 billion. He also predicted the first rate hike could happen as early as 2022.
Bullard’s remarks followed last week’s statements by the central bank that it could hike rates twice in 2023 and that it expects inflation to rise 3.4% this year, much more sharply than previous projections. Markets were surprised by the Fed’s restrictive stance as it reassured investors that spikes in inflation would only be temporary.
Investors will be closely watching an appearance by Fed chief Jerome Powell in front of Congress on Tuesday.
The benchmark ten-year government bond yield fell to 1.441% early Monday.
2. Bitcoin slumps as China’s crackdown intensifies
Bitcoin prices fell on Monday as China tightened its crackdown on cryptocurrencies.
Bitcoin fell 5.84% to $ 32,770 and Ethereum, the second largest digital currency, lost nearly 8%.
The Chinese city of Ya’an is said to have initiated extensive crackdown on crypto mining companies, Bloomberg reported.
A government official in Ya’an told at least one person
Bitcoin miners that the city has promised to eradicate all bitcoin and ether mining operations within a year, Bloomberg reported, citing someone with knowledge of the situation.
Last month, China again called for crackdown on Bitcoin mining and trading, while the People’s Bank of China said digital coins are not “real currency.”
Bitcoin peaked at more than $ 64,000 in mid-April. It has stabilized between about $ 30,000 and $ 40,000 since last month’s collapse.
3. – Amazon’s Prime Day has started
Amazons (AMZN) – Get the report Prime Day has started and the online retail giant is promising more than 2 million deals during the two-day event.
Telsey Advisory Group analysts predict this year’s Prime Day will generate $ 11 billion to $ 12 billion in revenue, with $ 8 billion to $ 8.5 billion coming from buyers in the United States
TheStreet’s Jim Cramer shares how he approached Amazon stocks before the big day.
Are you buying Amazon stocks in “Teeth of Monday?” Jim Cramer’s Prime Day preview
TheStreet’s Bret Kenwell said it has been months since Amazon had a strong, sustained rally. But the stock did better ahead of Prime Day.
The stock is up more than 7% since the start of the year.
Is Amazon heading for new highs?
Amazon competitors like Walmart (WMT) – Get the report and goal (TGT) – Get the report ran their own sales events this week.
Amazon and Walmart are involved in Jim Cramer’s Action Alerts PLUS member club. Would you like to be notified before Jim Cramer buys or sells the stock? Find out more now.
4. – This Week’s Calendar: Home Sales and GDP, FedEx and BlackBerry Profits
The U.S. economic calendar is blank on Monday, but data on home sales, jobless claims, durable goods orders, gross domestic product, manufacturing and personal income, and personal expenses will be released as the week progresses.
Earnings reports are expected from Nike this week (FROM) – Get the report, FedEx (FDX) – Get the report, BlackBerry (BB) – Get the report, KB home page (KBH) – Get the report, Ritual Help (WHEEL) – Get the report, IHS Markit (THE INFORMATION) – Get the report, CarMax (KMX) – Get the report, Accenture (ACN) – Get the report and Darden restaurants (DRI) – Get the report.
5. – CNH Industrial to buy Raven Industries for $ 2.1 billion
Industry license (CNHI) – Get the report agreed to buy
Agricultural engineering company Raven Industries (CROW) – Get the report for around $ 2.1 billion.
CNH Industrial will pay $ 58 per share for Raven, a 50% premium on Raven’s closing price of $ 38.62 on Friday.
Raven shares rose more than 47% to $ 56.86 in Monday’s pre-trading session. The CNH share fell slightly.
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