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5 things you need to know before the stock market opens on Wednesday, July 7

bynewsdesk
July 7, 2021

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Here are the key news, trends and analysis investors need to start their trading day:

1. Stocks look stable as Wall Street tries to restart the rally

The New York Stock Exchange welcomes executives and guests of Clear Secure, Inc. (NYSE: YOU), on June 30, 2021, in celebration of its first public offering.

NYSE

US stock futures were relatively flat on Wednesday, a day after the Nasdaq closed another all-time high while the S&P 500 broke a winning streak of seven sessions. The Dow Jones Industrial Average, which like the S&P 500 closed on a record, kicked off the short holiday week on Friday with a winning streak of four sessions. Concerns that the best of the economic recovery from the Covid pandemic could be in the rearview mirror hurt sentiment. US oil prices rose on Wednesday after Tuesday’s rise to a six-year high became the worst session since May. OPEC and its oil-producing allies created uncertainty in the market when they indefinitely postponed talks on production policy.

2. Bond yields fall ahead of the afternoon release of the Fed minutes

Federal Reserve Chair Jerome Powell at a House Financial Services Committee hearing on Dec. 2, 2020 in Washington.

Swimming pool | Getty Images News | Getty Images

The 10-year Treasury yields fell early Wednesday to trade around 1.34% ahead of the release of the minutes of the June meeting of the Federal Reserve’s policy-making committee. Traders will look for more clues as to why central bankers have moved their rate hike timetables forward, with most of the panel’s 18 members predicting two in 2023. In fact, seven members may see the Fed hike rates as early as next year. It’s going to be a busy summer for Fed watchers. Chairman Jerome Powell will testify on Capitol Hill next week, about two weeks earlier the Fed’s July meeting. The Jackson Hole Economic Policy Symposiumsponsored by the Kansas City Fed, is scheduled for August 26-28 in Wyoming.

3. Mortgage demand drops to lowest level since the start of the pandemic

A home for sale on Wednesday, June 9, 2021 in Susanville, CA.

Gary Coronado | Los Angeles Times | Getty Images

Demand for mortgages fell for the second week in a row as low inventory and high house prices continued to weigh on the hot housing market. Mortgage applications fell 1.8% last week, according to the Mortgage Bankers Association’s seasonally adjusted index, to the lowest level since early 2020, before the coronavirus pandemic began to take its toll on the economy. Both refinancing and purchase demand took a hit, even as mortgage rates fell. Home purchase applications fell 1% for the week and 14% from a year ago. Refis fell 2% for the week and 8% from a year ago.

4. Didi Removed From China’s WeChat, Alipay Apps For New Users

Budrul Chukrut | Light Rocket | Getty Images

Shares of Chinese ride-hailing giant Didi fell another 4% in Wednesday’s premarket as the company’s main app was removed from Tencent’s WeChat messaging service and Ant Group’s Alipay for new users. Didi plunged 19.6% to $12.49 a share on Tuesday, after China announced a cybersecurity assessment of the company. Didi went public on the New York Stock Exchange just a week ago at an initial offer price of $14 a share. The crackdown on Didi continues Beijing’s aggressive crackdown on Chinese tech companies, from last year’s cancellation of Ant Group’s $34.5 billion IPO to Alibaba’s $2.8 billion antitrust fine.

5. Satellite image company Planet Labs goes public

Co-Founder and CEO Will Marshall

Planet

Satellite image and data specialist Planet Labs prepares to go public, merging with a SPAC in a deal backed by Alphabet’s Google, BlackRock and Salesforce co-founder Marc Benioff. Planet Labs merges with dMY Technology Group IV, a special-purpose acquisition company that trades on the NYSE under the ticker DMYQ. “We are a mature company and have a massive new and unique dataset from our 190 satellites, the largest fleet of Earth images ever, and more than 10 times anyone else,” Will Marshall, Planet Labs co-founder and CEO, told CNBC. Shares of DMYQ were up nearly 2% in premarket trading.

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Sources

1/ https://Google.com/

2/ https://www.cnbc.com/2021/07/07/5-things-to-know-before-the-stock-market-opens-wednesday-july-7.html

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