Here are five things to know for Monday, June 7:
1. – Stock futures falter as Wall Street weights inflation and taxes
Stock futures fluctuated on Monday after Wall Street rallied to close last week following an employment report that eased concerns that the Federal Reserve may be withdrawing economic support.
Contracts tied to the Dow Jones Industrial Average were up 33 points and S&P 500 futures were down 2 points. Nasdaq futures fell 24 points as investors weighed the impact a 15% global corporate tax deal secured by the G-7 over the weekend would have on the tech giants.
Stocks closed higher on Friday and tech stocks rose after the United States added fewer jobs than expected to payrolls in May, leading investors to believe the Federal Reserve will not cut its $ 120 billion in purchases. monthly assets in the short term. The S&P 500 closed at 4,229, just short of a record.
The Dow Jones gained 0.7% for the week, the S&P 500 was up 0.6% and the Nasdaq added 0.5%.
Wall Street this week will await Thursday’s consumer price report for new signs of inflationary risks. The Federal Reserve has argued that any spike in inflation as the economy recovers from the coronavirus pandemic will be transitory.
Treasury Secretary Janet Yellen said President Joe Biden should go ahead with his $ 4 trillion spending plans, even if they spike inflation in the next year. He also told Bloomberg in an interview that slightly higher interest rates would be an advantage.
“If we end up with a slightly higher interest rate
environment, it would actually be an advantage for society’s point of view
view and point of view of the Fed, ”Yellen told Bloomberg.
2. – This Week’s Schedule: Consumer Price Index, GameStop Earnings
The US economic calendar for Monday is sparse on data, but later in the week you will see information on consumer prices, consumer confidence, and jobless claims.
Earnings expected Monday from Coupa Software (BLOW) – Get report and stitch correction (SFIX) – Get report. Reports expected later in the week from GameStop (GME) – Get report, Chewy (ALL) – Get report, Dave and Buster’s (PLAY) – Get report and stamp jewelers (S.I.G) – Get report.
3. – Apple’s WWDC – What to Expect
From Apple (AAPL) – Get report The annual developer conference, WWDC, kicks off Monday with rumors suggesting that the tech giant could announce five new software updates, including iOS 15 and macOS 12.
New hardware could also be unveiled, but according to Apple Maven Daniel Martins, those announcements tend to be rare during the developer conference.
Should You Buy Apple Stock Before WWDC?
However, Morgan Stanley analyst Katy Huberty said it was “likely” that Apple would announce at least one new MacBook model powered by Apple, MacRumors reported.
“In the last 12 months, Apple has introduced not only new Macs (MacBook Air, MacBook Pro 13” and Mac Mini) with M1, but also a high-end 12.9 “iPad Pro with M1 chip,” Huberty wrote. . “We expect this momentum to continue at WWDC 2021, and based on our testing, we think Apple is likely to launch a new MacBook with in-house designer silicon.”
4. – Biogen rises as expected FDA decision on Alzheimer’s drug
Biogen (BIIB) – Get report It was up more than 4% in premarket trading on Monday as investors awaited the Food and Drug Administration’s decision on whether to approve the company’s Alzheimer’s drug aducanumab.
An approval would make aducanumab the first licensed treatment for Alzheimer’s, the disease that destroys memory.
Analysts have been contradictory on whether the authorization will be granted. Whatever the FDA’s decision, the impact on Biogen’s actions could be huge, they said.
This is “the mother of all binary events,” said JP Morgan Chase analyst Cory Kasimov. A rejection could drop Biogen shares to $ 200, while approval could push them to $ 450, he said.
Mizuho analyst Salim Syed estimated that the stock could rise to around $ 400 or fall to around $ 200, depending on how the FDA decides.
Biogen shares rose 3.27% to $ 295.50 in premarket trading.
5.- El Salvador could adopt Bitcoin as a legal tender
El Salvador’s President Nayib Bukele said he was drafting a bill to convert Bitcoin into legal tender alongside the US dollar in the Central American nation.
“Next week I will send to Congress a bill that will convert bitcoin into legal tender in El Salvador,” he said in a video broadcast at the Bitcoin 2021 conference in Miami. “In the short term, this will create jobs and help bring financial inclusion to thousands of people outside of the formal economy and, in the medium and long term, we hope that this small decision can help us move humanity at least a little bit in the direction correct ”.
Bitcoin rose slightly on Monday, climbing 1.31% to $ 36,547. The world’s largest cryptocurrency set a record of more than $ 64,000 in mid-April.
“Bitcoin has a market capitalization of $ 680 billion dollars,” Bukele said in a thread on Twitter, arguing that if 1% of the cryptocurrency were invested in El Salvador, “that would increase our GDP by 25%. other side, #Bitcoin it will have 10 million potential new users and the fastest growing way to transfer $ 6 billion a year in remittances. “
Remittances from Salvadoran citizens working in the United States represent more than a fifth of El Salvador’s gross domestic product, according to the United States Department of State.