Here are five important things investors should know before starting the trading day.
1. Nvidia breaks up
Stock futures were down Monday morning after finishing the week strong on Friday. Dow Jones Industrial Average futures were down roughly 0.2%, while S&P 500 futures and Nasdaq 100 futures were down slightly. NVIDIA The company’s stock, which has been increasingly a market leader recently, also fell in pre-market trading. The AI-enabled chipmaker’s shares fell 0.2% after a 10-for-1 stock split went into effect. The stock is currently trading at around $120 per share. Follow real-time market updates.
2. The pigeon coos
Federal Reserve Chairman Jerome Powell speaks at a press conference after the Federal Open Market Committee’s (FOMC) two-day interest rate policy meeting in Washington, D.C., May 1, 2024.
Kevin Lamarque | Reuters
Friday’s positive employment news was bad news for investors waiting for the Federal Reserve to cut interest rates. Market expectations of a rate cut have dwindled after job and wage growth in May beat expectations. Federal funds futures prices suggest that a rate cut is unlikely at this month’s and next month’s policy meetings, with only a 54% chance in September. Expectations of an easier monetary policy and the associated expansion in stock market yields have faded this year as inflation remains above the Fed’s 2% target. Both the Consumer Price Index, due for release on Wednesday, and the Producer Price Index, due for release on Thursday, will help determine the central bank’s future interest rate direction.
3. Profits, Suspension
The waiting page of Reddit user Keith Gill, who is said to have helped spur GameStop’s share price to rise, before a YouTube livestream on his laptop at the New York Stock Exchange (NYSE) in New York, USA, Friday, June 7, 2024.
Michael Nagel | Bloomberg | Getty Images
GameStop It was back to reality on Friday. The video game retailer’s shares tumbled 40% after it reported a 29% drop in first-quarter sales and announced plans to sell more stock. Even a livestream by a trader known as “Roaring Kitty” didn’t help. The godfather of the meme-stock boom, who can send GameStop shares soaring with social media posts, offered little new information about the company and his holdings. GameStop shares surged more than 40% on Thursday after trader Keith Gill scheduled a livestream. Friday’s plunge continued a wild ride for GameStop since Gill resurfaced last month. The stock was halted 17 times during the session, the most since January 2021, when it was halted 19 times.
4. Double or Nothing
French President Emmanuel Macron speaks with CNBC’s Andrew Ross Sorkin (not pictured) in Paris on May 23, 2024.
CNBC
French President Emmanuel Macron has dissolved parliament and called for new parliamentary elections following his party’s crushing defeat in the Brexit vote. Sunday’s results showed Marine Le Pen’s far-right National Rally winning about 31% of the vote, more than doubling the support of Macron’s centrist Renaissance party. “Now is a crucial moment for explanations,” Macron said in a speech to the nation on Sunday. “We have heard your messages, your concerns, and we are not going to go unanswered.” French voters will vote again on June 30 and July 7.
5. Cost Car
U.S. automakers are struggling to sell electric vehicles. Costco. General Motors GM is increasing EV sales through a partnership with the Costco Auto program, a membership-based club that acts as a middleman between franchise dealers, automakers and members, who can buy vehicles at discounted prices. Marissa West, president of GM North America, said the company is “excited” about Costco and its ability to drive EV adoption. Costco’s program has helped drive an average of more than 500,000 vehicle sales per year over the past five years.
–CNBC’s Sarah Min, Jeff Cox, Fred Imbert, Yun Li, Alex Harring, Mike Wayland and Katrina Bishop contributed to this report.
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