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

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

1. Stocks look flat as Wall Street tries to resume rally

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

NYSE

US stock futures were relatively flat on Wednesday, a day after the Nasdaq hit another record closing high while the S&P 500 broke a seven-session winning streak. The Dow Jones Industrial Average – which represented the S&P 500, at a record high on Friday – kicked off the shortened week for the holiday by picking up a four-session winning streak. Worrying that the best economic recovery from the Covid pandemic could be in the rear-view mirror is hurting sentiment. US oil prices rose on Wednesday after Tuesday’s rally to a six-year high turned into the worst session since May. OPEC and its oil-producing allies threw uncertainty into the market when they indefinitely postponed talks on production policy.

2. Bond yields dip ahead of afternoon Fed minutes

Federal Reserve Chairman Jerome Powell during a House Financial Services Committee hearing on December 2, 2020 in Washington.

pool | Getty Images News | Getty Images

The 10-year Treasury yield fell early Wednesday, trading around 1.34%, ahead of the afternoon’s release of the minutes of the Federal Reserve’s policy-making committee’s June meeting. Traders will be looking for more clues as to why central bankers are raising their rate hike schedule, with most of the 18 committee members expecting two in 2023. In fact, seven members believe the Fed could raise rates as early as 2023. Next year . It will be a busy summer for Fed watchers. Chairman Jerome Powell is scheduled to testify next week on Capitol Hill, two weeks before the Federal Reserve’s July meeting. The Jackson Hole Economic Policy Symposium, sponsored by the Federal Reserve Bank of Kansas City, is scheduled for August 26-28.

3. Mortgage applications drop to their lowest level since the beginning of the epidemic

Home for sale on Wednesday, June 9, 2021 in Susanville, California.

Gary Coronado | Los Angeles Times | Getty Images

Mortgage demand fell for the second week in a row as falling inventories and rising home prices continued to weigh on the heated housing market. Mortgage applications fell 1.8% last week, according to the seasonally adjusted Mortgage Bankers Association index, dropping to the lowest level since the start of 2020, before the coronavirus pandemic began to affect the economy. Demand for refinancing and purchases has been hit, even with lower mortgage rates. Home purchase orders are down 1% over the week and 14% from a year ago. Refis is down 2% for the week and 8% from a year ago.

4. Didi removed from China’s WeChat and Alipay apps for new users

Badrul Shkorot | Light Rocket | Getty Images

Shares of Chinese transportation giant Didi fell another 4% in the first market on Wednesday as the company’s main app was removed from Tencent’s WeChat messaging service and Ant Group’s Alipay for new users. Didi fell nearly 19.6% to $12.49 a share on Tuesday, after China announced a cybersecurity review of the company. Didi went public on the New York Stock Exchange exactly one week ago at an initial offering price of $14 per share. The crackdown on Didi continues Beijing’s crackdown on Chinese technology companies from canceling Ant Group’s $34.5 billion IPO last year to a $2.8 billion antitrust fine on Alibaba.

5. Planet Labs satellite imagery company was launched to the public

Co-founder and CEO Will Marshall

planet

Planet Labs, which specializes in satellite imagery and data, is preparing to go public, and is merging with SPAC in a deal backed by Alphabet’s Google, BlackRock and Salesforce co-founder Marc Benioff. Planet Labs is merged with the special purpose acquisition company dMY Technology Group IV, which trades on the New York Stock Exchange under the symbol DMYQ. “We are a mature company with a new and unique data set from 190 satellites, the largest Earth-imaging fleet ever, and more than 10 times more than anyone else,” Will Marshall, co-founder and CEO of Planet, told CNBC. DYMQ shares are up nearly 2% in pre-market trading.

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