Here are the most important news, trends, and analysis for investors to read before they begin their trading day:
1. The Dow is poised to rebound after snapping a three-day winning streak.
Traders on the New York Stock Exchange’s floor.
NYSE is the source.
Stock futures in the United States rose Wednesday after the Dow ended a three-day winning streak. The 30-stock index fell 81 points, or 0.2 percent, on Tuesday as the market sought direction ahead of the long Memorial Day weekend. At the session highs, it was up more than 100 points. The S&P 500 and Nasdaq, which were both higher intraday, finished slightly lower. The Dow and S&P 500 were more than 1% off their May 7 record closes as of Tuesday. The Nasdaq was 3.4 percent off its closing record high on April 26. The 10-year Treasury yield rose slightly on Wednesday, but it remained below 1.6 percent as Federal Reserve officials sought to assuage inflation fears.
Amazon has agreed to pay $8.45 billion for MGM Studios, the companies announced on Wednesday. This is Amazon’s most ambitious move into the entertainment industry to date. Amazon’s second-largest acquisition since paying $13.7 billion for Whole Foods in 2017. Amazon has also made a strong push into sports content, inking a deal with the NFL in May to begin broadcasting Thursday Night Football in 2022.
2. Bitcoin is advancing, but the recent collapse has boosted gold prices.
In this April 26, 2021 illustration, a Bitcoin logo is seen on a smartphone with stock market percentages in the background.
Bitcoin rose on Wednesday, hovering around $40,000, just one week after the world’s largest cryptocurrency fell 30% to around $30,000. The sell-off last week occurred as authorities in China and the United States tightened regulation and tax compliance on cryptocurrencies. In April, Bitcoin reached an all-time high of around $65,000.
On Thursday, July 2, 2020, twenty kilogramme gold and silver bricks sit at the ABC Refinery smelter in Sydney, New South Wales, Australia.
Bitcoin supporters see it as a store of value, similar to gold. With its declines, many investors are returning to gold as an inflation hedge, a historically common strategy. Gold neared a 412 month high on Wednesday, edging ever closer to $2,000 per ounce. In August 2020, it reached an all-time high of $2,063 USD.
3. Major bank CEOs will be subjected to two days of Capitol Hill hearings.
JPMorgan Chase Chairman and CEO Jamie Dimon testifies about JPMorgan Chase’s trading loss at a US House Financial Services Committee hearing on Capitol Hill in Washington, DC, on June 19, 2012.
4. Republicans will send Biden a nearly $1 trillion infrastructure counter-proposal.
Senator Shelley Moore Capito, a Republican from West Virginia, speaks as Senator Roger Wicker, a Republican from Mississippi, and Senator John Barrasso, a Republican from Wyoming, listen during a news conference on Capitol Hill on Thursday, April 22, 2021, in Washington, D.C., United States.
A group of Republican senators plans to send President Joe Biden a counter-offer on infrastructure as soon as Thursday morning, as both parties consider whether they can bridge ideological divides to craft a bipartisan bill. The proposal has the potential to cost nearly $1 trillion. Republicans intend to offset spending without raising taxes. Sen. Shelley Moore Capito, R-W.Va., said the Democrats’ price tag was still “well above the range of what can pass Congress with bipartisan support” after the White House reduced its infrastructure offer by more than 25% to $1.7 trillion.
5. In some models, Tesla foregoes radar in favour of Autopilot.
On March 2, 2021, a Tesla Model 3 is plugged in and charging at a Supercharger rapid battery charging station for electric vehicles in Bersteland, Germany.
Tesla announced that it will replace radar with a camera-based system to enable Autopilot features in its Model 3 and Model Y vehicles in North America. Elon Musk, Tesla’s CEO, stated in a March 12 tweet that the company would adopt a “pure vision” approach. Other automakers, such as GM’s Cruise and Alphabet’s Waymo, use radar and lidar sensors in conjunction with cameras in their automated driving systems. Autopilot driver assistance features are standard on all new Tesla vehicles. Tesla also offers a $10,000 premium software package billed as “full self-driving.”