Here are the top news, trends, and analysis investors need to start their trading day:
1. Futures mixed ahead of the major inflation report; S&P 500 close to record
Traders on the floor of the New York Stock Exchange, June 4, 2021.
US stock futures were mixed before a hot inflation report is expected that could dictate trading on Wall Street on Thursday. The Dow posted its third straight losing session on Wednesday. In a rather subdued June, the average of the 30 stocks was still less than 1% off last month’s all-time high. The S&P 500, which also fell on Wednesday, trailed 0.3% from its record high from May. The Nasdaq broke a three-session winning streak. But Wednesday’s modest decline still kept the tech-heavy index within 1.6% of its late April high.
2. Consumer inflation is expected to hit a 28-year high in May
A customer wearing a protective mask loads wood onto a cart at a Home Depot store in Pleasanton, California on Monday, February 22, 2021.
David Paul Morris | Bloomberg | Getty Images
The 10-year government bond yield remained stable at around 1.5% Thursday as traders wait for the government to release the consumer price index for May at 8:30 a.m. ET. Headline CPI is expected to climb 4.7% yoy, the highest rate since sky-high energy prices in the fall of 2008 drove inflation numbers higher. Estimates assume a year-over-year increase in the core CPI rate of 3.5%, excluding the energy and food sectors. The Federal Reserve, which has said hotter inflation will be temporary, meets next week. At 8:30 p.m. ET, the government will also release its weekly unemployment claims report, with estimates of 370,000 new claims for the past week. That would be a new low in the pandemic era.
3. GameStop Appoints Former Amazon Executives as New CEO and CFO
A person wearing a protective mask leaves a GameStop Corp. store on Thursday, April 22, 2021. at a mall in San Diego, California.
Bing Guan | Bloomberg | Getty Images
GameStop’s shares fell about 6% in the premarket the morning after the video game retailer named former Amazon executive Matt Furlong as its new CEO. GameStop also has another former Amazon executive, Mike Recupero, as its CFO. The company is trying to move from a largely stationary store to an online one. Chewy co-founder Ryan Cohen, who invested in GameStop last year and drove the new strategy, became chairman. GameStop sales rose 25% in the first fiscal quarter, with loss per share being lower than expected. The stocks of the original Reddit preferred Meme stock rose 1,500% in 2021.
4. Meat supplier JBS paid ransomware hackers $ 11 million
JBS meat processing facility will be visited on June 2, 2021 in Plainwell, Michigan.
Jeff Kowalsky | AFP | Getty Images
Brazil’s JBS, the world’s largest beef supplier, paid the ransomware group that invaded their computer networks around $ 11 million. The company was hacked by REvil, one of several Russian-speaking gangs, in May, which resulted in plant closings. The news of the payment of the JBS comes after a statement from Congress by Joseph Blout, CEO of Colonial Pipeline, which was recently hacked by another Russian hacker group, DarkSide. In a statement to the Senate Tuesday, Blout said Colonial Pipeline’s decision to pay for the ransomware demand was “right for the country.”
5. Biden presents Covid vaccine donations and calls on leaders to join
U.S. President Joe Biden stops before the G7 summit near Mildenhall, Britain, on Jan.
Kevin Lamarque | Reuters
President Joe Biden, who met with leaders of the affluent G-7 democracies on his first overseas trip since taking office, is expected to reveal plans on Thursday for the US to donate 500 million doses of vaccine around the globe over the next year. That’s in addition to the 80 million recordings that Biden has already committed to by the end of the month. US officials said the president will also submit a direct request to his other G-7 leaders to do the same. As Covid wears off in the US, the pandemic has reached new levels of devastation in many countries. India reported a daily record of more than 6,000 deaths from the disease on Thursday.
– NBC News and the Associated Press contributed to this report. Follow all market activity like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.