CNBC
U.S. stock futures were flat Tuesday after a hotter government report on wholesale prices, which could stoke inflation fears. Following last week's spike in consumer prices, investors will be awaiting signals from the Federal Reserve on its inflation tolerance when the two-day June meeting of central bank policymakers ends Wednesday. (CNBC)
Against that back drop, the Nasdaq started the week with a gain that pushed the tech-heavy index above its late-April record close. The S&P 500 notched a slight gain and another record close. The Dow broke a two-day winning streak. The 30-stock average was 1.1% away from its most recent record close in early May. (CNBC)
The 10-year Treasury yield ticked higher Tuesday, trading around 1.5%, after the May producer price index rose a hot 6.6% year over year, the largest 12-month increase on record. May retail sales dropped a greater-than-expected 1.3%. (CNBC)
CNBC's latest Fed survey of economists, fund managers and Wall Street strategists shows that they believe the tapering of the Fed's massive Covid-era bond buying won't start until January and the first interest rate hike from near zero levels won't happen until November 2022.
IN THE NEWS TODAY
The EU and the United States have resolved a 17-year dispute concerning government subsidies for their respective aircraft makers Boeing and Airbus. The two sides agreed to suspend for five years trade tariffs that stem from the dispute, which were imposed during the Trump administration. (CNBC)
As daily new Covid cases and deaths in the U.S. drop dramatically along with high vaccination rates, the nation was on the verge of recording a total of 600,000 fatalities from the disease. That's the most Covid deaths of any country, according to data compiled by Johns Hopkins University.
* California reopens, ends most Covid mitigation restrictions (AP)
AstraZeneca (AZN) said an experimental monoclonal antibody treatment did not meet its main goal of preventing Covid in patients who had been exposed to the virus. The company also said, however, that its Covid vaccine is 92% effective against the Delta variant first discovered in India. (Reuters)
Novavax (NVAX) announced positive results from its first study of its Covid vaccine and a flu vaccine administered simultaneously. The study suggested that shots at the same time may be a viable strategy. (Reuters)
STOCKS TO WATCH
Sage Therapeutics (SAGE) shares tanked 17.5% in premarket trading following the release of study results for Sage's experimental depression drug. The treatment resulted in a statistically significant improvement in symptoms, although it could take up to six weeks to be effective and treatment may be required for months.
Vroom (VRM) intends to offer $500 million in convertible senior notes due in 2026. The used-vehicle e-commerce platform provider plans to use the proceeds for a variety of corporate purposes as well as investing in or acquiring new technologies. Its shares slid 6.1% in premarket trading.
Ping Identity (PING) announced a 6 million share common stock offering, in a sale of shares held by investment funds affiliated with Vista Equity Partners. The identity management solutions company will not receive any proceeds from the offering. The stock tumbled 4.2% in premarket action.
Cracker Barrel (CBRL) announced a $275 million private offering of convertible senior notes due in 2026. The restaurant chain will use the proceeds to pay debt and for general corporate purposes.
Spirit Airlines (SAVE) said in a SEC filing that leisure demand has continued to improve throughout the second quarter, and that it has seen operating yields strengthen as well. Citi upgraded the stock to "buy" from "neutral" following that update, and shares rallied 2.6% in the premarket.
Intuit (INTU) revealed in an SEC filing that its QuickBooks online service saw new customer acquisition grow by more than 25% year-over-year for the nine months ended April 30. Intuit shares hit an all-time high in Monday's trading.
Vimeo (VMEO) reported that total revenue in May rose 42% from a year ago, with the video services company also seeing average revenue per user up 18%.
CONTRIBUTORS
Matthew J. Belvedere
@Matt_Belvedere
Peter Schacknow
@peterschack
