Here are the most important news, trends and analysis investors need to start their trading day:
1. Wall Street will open lower as bond yields remain high
Traders work on the floor of the NYSE, June 6, 2022.
Source: NYSE
US stock futures Tuesday’s drop, with bond yields rising play spoiler again. Sentiment also affects shares of Target fell more than 8% in the currency market due to a profit warning.
- The Dow Jones Industrial Average gave up nearly all of Monday’s 300+ gains at the close as a benchmark 10-year Treasury yield top 3%, reach the highest level in almost a month.
- The S&P 500 and Nasdaq were able to keep much of their Monday gains against the Dow, finishing 0.3% and 0.4% higher, respectively.
- Despite the strong gains in the week before Memorial Day, last week’s losses kept the Dow and S&P 500 solid during corrections and the Nasdaq in a bear market, based on a decline from the previous week. previous all-time high.
2. Target stock falls after retailer warns of earnings
A person walks into a Target store in Washington, DC, on May 18, 2022.
Stefani Reynolds | AFP | beautiful pictures
Target is alerted Third, earnings will suffer in the short term as retailers remove unwanted items, cancel orders, and take aggressive steps to eliminate excess inventory. Target predicts operating margin for the second fiscal quarter will be around 2%. The figure was lower than the outlook the company gave less than three weeks ago when it reported a missed broader fiscal first-quarter earnings call, sending the stock down about 25% in its worst single day. on Wall Street since 1987.
3. Kohl’s Soars After Sales Negotiations With Owner Vitamin Shoppe
The Kohl’s logo is displayed on the exterior of a Kohl’s store on January 24, 2022 in San Rafael, California.
Justin Sullivan | beautiful pictures
Kohl’s Stocks rallied nearly 10% in money markets on Tuesday, the morning after the department store chain said participate in semi-exclusive negotiations with the retail segment behind The Vitamin Shoppe and Pet Materials Plus. Franchise group is offering to buy Kohl’s at $60 per share, 40% higher as of Monday’s close. Franchise group is working with Oak Street Real Estate Capital to finance the deal primarily through real estate, according to a person familiar with the matter.
4. Yellen begins two days of Capitol Hill testimony on inflation
Janet Yellen, US Secretary of the Treasury, presenting “Tommaso Padoa Schioppa” at the Brussels Economic Forum in Brussels, Belgium, on Tuesday, May 17, 2022.
Valeria Mongelli | Bloomberg | beautiful pictures
Ahead of Friday’s May consumer price reading, inflation takes center stage on Capitol Hill this week as Treasury Secretary Janet Yellen testifying before a Senate panel on Tuesday and a House conference on Wednesday. Yellen, former chairman of the Federal Reserve, face tough questions about how the Biden administration has handled the economy after she mistakenly assumed that inflation was temporary. High inflation for forty years has pushed the national average for a gallon of gasoline to another record, just 8 cents to $5, according to AAA.
5. Senators Introduce a Bipartisan Bill to Regulate Cryptocurrency
United States Capitol in Washington, DC
Liu Jie | Xinhua News Agency | beautiful pictures
Sensor. Kirsten GillibrandDN.Y. and Cynthia Lummis, R-Wyo., on Tuesday disclosure a bipartisan bill to create a regulatory framework around cryptocurrencies. The Lummis-Gillibrand bill, the product of months of cooperation on Capitol Hill, helps categorize most digital assets into commodities. The Responsible Financial Innovation Act will empower the Commodity Futures Trading Commission to regulate most existing digital assets. Both Lummis and Gillibrand want to work on developing their respective states into blockchain and crypto havens.
– by CNBC Tanaya Macheel, Melissa Repko, Lauren Thomas and Thomas Franck as well as Reuters contributed to this report.
– Register now for the CNBC Investment Club to track every move in Jim Cramer’s stock. Follow broader market action like a pro on CNBC Pro.
