GameStop, Cleveland-Cliffs, Chewy, Inflation: 5 things to know
Here are five things you need to know for Thursday, June 10:
1. – Stock futures fluctuate before inflation data
Equity futures wobbled Thursday as traders waited for the latest consumer price data in the United States to help them determine if the Federal Reserve could soon start discussing the withdrawal of its market support policies .
Dow Jones Industrial Average contracts rose 53 points, S&P 500 futures gained 2 points and Nasdaq futures fell 28 points.
Consumer price data for May will be released on Thursday before trading begins. A drop below 1.5% in the benchmark 10-year Treasury yield indicated that investors have started to support the Fed’s belief that any spike in inflation will be transient as the economy recovers from the pandemic of COVID-19.
“Investors believe that current inflation
the pressure is transient, ”said Ann-Katrin Petersen, Allianz Global
Investor Investment Strategist, on Bloomberg TV. “They
expect the US Federal Reserve to remain expansionary for the
The Federal Reserve’s governing body, the Federal Open Market Committee, will meet next week.
Senior U.S. and Chinese trade officials, meanwhile, agreed in a phone call Thursday to advance trade practices and cooperate on differences.
Shares fell on Wednesday as Wall Street braced for the latest inflation data on Thursday.
2. – GameStop collapses on share sale plans
GameStop (GME) – Get a report posted a lower than expected loss in the first quarter and added two Amazon alumni (AMZN) – Get a report executives in key executive positions, but the stock fell after the video game retailer announced plans to sell an additional 5 million shares in order to raise additional capital.
Shares of GameStop fell 6.96% in pre-market trading Thursday to $ 281.50.
The video game retailer also said it received a request from the Securities and Exchange Commission in late May for “voluntary production of documents” related to an ongoing investigation into “commercial activity.”
“We are in the process of reviewing the request and producing the requested documents and intend to cooperate fully with SEC staff regarding this matter,” GameStop said. “This investigation should not have a negative impact on us.”
Matt Furlong, who was in charge of Amazon’s Australia operations, will take over as CEO of GameStop on June 21. Mike Recupero, who until recently was Amazon’s chief financial officer for North American consumer operations, will take up the role of chief financial officer next month.
Cramer’s Crazy Money recap: GameStop, CrowdStrike, Wendy’s
3. – Thursday Calendar: Consumer Price Index, Chewy Earnings
Thursday’s U.S. economic calendar includes the Consumer Price Index for May at 8:30 a.m. ET. Economists polled by FactSet expect consumer prices to rise 0.4% in May, following April’s 8% rise. Year over year, consumer prices are expected to have jumped 4.6% from 4.2%.
The calendar also includes weekly unemployment claims at 8:30 a.m.
Chewy earnings reports are due Thursday (CHWY) – Get a report, Dave & Buster’s Entertainment (TO PLAY) – Get a report and Bookmark Jewelers (GIS) – Get a report.
4. – HR jumps on increasing revenue forecast
HR actions (HR) – Get a report, the former Restoration Hardware, rose sharply after the home furnishings retailer beat analysts’ estimates for first-quarter earnings and raised its guidance for the year.
The stock was up 6.33% to $ 650 in pre-market Thursday.
RH said he expects revenue for the year to grow 25% to 30%, higher than his previous calls for 15% to 20% growth. The company also said it expects an adjusted operating margin of 23.5% to 24.3%, “an increase of 170 to 250 basis points from our previous outlook.”
For the current second quarter, RH expects revenue to grow 35% to 37%, from $ 709 million a year earlier.
The company cited several factors for its continued optimism, including “a strong housing and renovation market, with both pent-up demand and a long tail, a record stock market, low interest rates and the reopening of several major parts of our economy “.
5. – Cleveland-Cliffs explodes amid the frenzy of Meme’s actions
Cleveland cliffs (FCF) – Get a report stocks extended their gains in pre-market trading on Thursday, but only after climbing nearly 15% in the previous session as the steelmaker caught up in the meme stock frenzy.
The stock was up 1.85% Thursday morning to $ 23.65.
Cleveland-Cliffs soared on Wednesday as discussions took place on the Reddit forum, WallStreetBets and other social media platforms about a short stock squeeze. Traders claimed the stock was short and undervalued at a time when steel prices were rising and wait times for large steel orders were longer due to shortages. .
The price of steel has jumped in recent months, trading at nearly triple its 20-year average.