BY THE NUMBERS
US stock futures sank on Thursday as the post-Fed meeting rally proved short-lived as bond yields resumed their upward trend and other central banks around the world took stances. more aggressive policies. A day after the Fed raised interest rates by 75 basis points, the Swiss National Bank and the Bank of England followed suit. (CNBC)
Three worse-than-expected economic reports were released at 8:30 am ET. Initial jobless claims fell to 229,000 in the week ending June 11. New home construction and building permits in May fell 14.4% and 7%, respectively. The Philadelphia Fed manufacturing index hit minus 3.3 in June. (CNBC)
Fed Chairman Jerome Powell said in his post-meeting news conference that a rate hike of “50 or 75 basis points” is most likely at the July policy meeting. Wednesday’s 75 basis point move was the biggest gain since 1994. The plunge in risk assets reflects investors’ concern that the Fed won’t be able to stem rising inflation without tipping the economy into recession. (CNBC)
TODAY IN THE NEWS
Bitcoin dipped below $20,000 overnight, before paring some of those losses as the entire crypto market endured another day of selling. Bitcoin was trading at levels not seen since December 2020, down 27% in the last week and nearly 70% down from its November all-time high above $68,000. (CNBC)
Elon Musk was scheduled to address Twitter employees in a virtual town hall meeting on Thursday. The billionaire CEO of Tesla and SpaceX is expected to confirm his intention to buy Twitter, a person familiar with the matter told The Wall Street Journal. Last week, Musk warned Twitter that he could back out of its $44 billion offer if the company didn’t provide more data on spam and fake accounts.
At Musk’s Tesla, the electric carmaker has raised prices across its entire lineup, according to electric vehicle news site Electrek. Some of the increases were as high as $6,000 as raw material costs rose and disruptions to supply chains continued. Electrek noted that the last major price increase at Tesla was in March 2022, followed by a smaller one on long-range vehicles in April.
Revlon (REV) has filed for Chapter 11 bankruptcy protection as the cosmetics maker grapples with an approximately $3.3 billion debt load. The shares fell 4.4% before trading. The company said it expects to receive $575 million in debtor-in-possession financing from its existing lender base, which will help support its day-to-day operations. (CNBC)
Moderna’s (MRNA) and Pfizer’s (PFE) Covid vaccines for infants through preschoolers and kindergarten children have moved one step closer to Food and Drug Administration authorization. The FDA is likely to accept the vaccine committee’s guidance and quickly authorize the injections. (CNBC)
* Dr. Anthony Fauci tests positive for Covid, has mild symptoms (CNBC)
On Thursday, the January 6 committee will dive into Donald Trump’s latest effort to salvage the 2020 presidential election by pressuring Vice President Mike Pence to reject voter counting, powers Pence did not have, in the run-up to the election. choice. Riots at the United States Capitol. (AP)
ACTIONS TO SEE
Amazon (AMZN) said its annual Prime Day shopping event would take place July 12-13. Last year’s Prime Day generated an estimated $3.5 billion in sales. Amazon fell 2.8% in premarket trading.
Abbott Laboratories (ABT) said it would halt production of its special EleCare infant formula at its Sturgis, Michigan plant after severe storms flooded areas of the plant. Abbott said the flooding would likely delay production and distribution for a few weeks, and its shares fell 2% before trading.
Warner Bros. Discovery (WBD) fell 4% premarket after JP Morgan rated media stocks neutral, citing a macroeconomic environment that could weigh on ad spending.
Jabil (JBL) rose 1.2% in premarket trading after beating high and low estimates for its latest quarter. The contract electronics maker earned an adjusted $1.72 per share, 10 cents above estimates, and said it continues to see strong demand from its customers.
Commercial Metals (CMC) reported an adjusted quarterly profit of $2.61 per share, beating the consensus estimate of $2.02. Revenues also exceeded forecasts. Shares of the metal products maker rose 4.6% before the market.
The US Open begins Thursday in Brookline, Massachusetts. Last week, the United States Golf Association decided to allow Phil Mickelson, Dustin Johnson, Bryson DeChambeau and other golfers to compete, despite the PGA suspending them for joining the Saudi-backed LIV Golf Series. However, the USGA made it clear that it does not endorse the LIV tour. (USA Today)