Here are the top news, trends, and analysis investors need to start their trading day:
1. Wall Street will close the first half of 2021 with solid profits
Traders on the floor of the New York Stock Exchange, June 25, 2021.
US stock futures were flat on Wednesday, a day after the S&P 500 and Nasdaq hit record highs again. The Dow Jones Industrial Average, which was up more than 100 points early Tuesday, closed slightly higher and stayed around 1.4% off its record high in early May. The 10-year government bond yield ticked lower on Wednesday, trading around 1.46% on better-than-expected ADP job data.
At the beginning of the last day of June and the first half of the year, the S&P 500 led the most important benchmarks with an increase of 14.3% since the beginning of the year. The Nasdaq gained 12.7% over the course of the year. The Dow was up 12% in 2021, although it has lagged recently, seeing a slight monthly decline. The S&P 500 and the Nasdaq rose in June. All three benchmarks saw solid gains in the second quarter.
2. Bed Bath & Beyond’s revenues are impacted by turnaround costs
Shoppers exit a Bed Bath & Beyond store in New York.
Michael Nagel | Bloomberg | Getty Images
Bed Bath & Beyond shares rallied in the premarket on Wednesday after the retailer reported mixed results for the first quarter. Sales exceeded estimates, but profits were missed. Costs related to the company’s turnaround efforts, including marketing expenses, weigh on margins. The company raised its full-year sales forecast ahead of the important back-to-school shopping season. Stocks of Bed Bath & Beyond, which saw some strength in meme stock trading earlier this month, rose 68% at the close of trading on Tuesday in 2021.
3. Three companies will make their public debuts
A logo of the ride-hailing giant Didi Chuxing can be seen on a building in Hangzhou in the eastern Chinese province of Zhejiang.
STR | AFP | Getty Images
Didi Global is expected to start trading on the New York Stock Exchange on Wednesday after setting its IPO at $ 14 per share and raising $ 4.4 billion. That gives the China-based ride-hailing company an initial valuation of about $ 73 billion.
Digital advertising company Taboola will be launched on Wednesday following its merger with ION Acquisition Corp. 1, a special purpose vehicle for acquisitions, to start trading on Nasdaq. The SPAC transaction will raise $ 526 million when completed.
Clear, number 19 on CNBC’s Disruptors 50 list this year, is expected to trade on the NYSE on Wednesday after valuing its initial public offering of $ 31 per share and raising more than $ 400 million. Clear, known for its frequent flyer identification service, introduced the Health Pass during the Covid pandemic.
4. ADP publishes strong June private employment report
People walk past a Help Wanted sign in the Queens borough of New York City on June 4, 2021 in New York City.
Spencer Platt | Getty Images News | Getty Images
ADP reported Wednesday that U.S. company jobs rose 692,000 in June. That easily exceeds estimates. However, in May the value of positions in the private sector, while still strong, was revised significantly down to 886,000. During the Covid pandemic, the ADP report wasn’t a good indicator of what the government’s monthly employment report might be showing. Economists expect Friday’s job data to show that around 700,000 new jobs outside of agriculture were created in June. The country’s unemployment rate is expected to fall to 5.7%. Weekly jobless claims are published on Thursday.
5. When the real estate boom begins to fizzle out, mortgage demand falls
A sign advertising home loans for purchase or refinance with a Bank of America in New York.
Scott Mlyn | CNBC
High home prices are finally starting to take some of the boom out of the Covid-induced real estate boom. Mortgage demand fell 6.9% for the week, according to the Mortgage Bankers Association. That is the lowest level in almost a year and a half. Home purchase mortgage applications fell 5% weekly and 17% annually. That’s the slowest pace since early May 2020 when the lockdowns were in full effect. Refinancing requests decreased by 8% weekly and 15% annually.
– Reuters 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.