Here are the most important news items that investors need to start their trading day:
1. Summer slide?
Stock futures dipped Monday as the final week of June trading starts. Stocks slumped last week to start the summer. All of the major U.S. indexes fell more than 1% during the week after winning runs. The tech-heavy Nasdaq in particular had been roaring, as the downturn broke an eight-week winning streak. The data points that will help to shape the path of markets this week include consumer confidence and new home sales on Tuesday, along with pending home sales and a third read on first-quarter GDP on Thursday. Follow live market updates here.
2. Russia revolt fizzles out
Russia turned back a mutiny by Yevgeny Prigozhin, the head of the mercenary force Wagner Group, which has supplemented President Vladimir Putin’s army during its brutal assault on Ukraine. Prigozhin stood down on Sunday, mere hours after his private militia took control of the key southern Russian city of Rostov-on-Don and started to advance toward Moscow. Global markets monitored the potential threat to the power structure of the major energy-producing nation. Oil prices gave up earlier gains, and the ruble hit a near 15-month low against the dollar Monday. While the long-term implications of the rebellion are still unclear, the episode marked perhaps the greatest threat yet to Putin’s more than two-decade hold on power. Follow live Russia updates here.
3. Oil markets on guard
Sustained chaos in Russia would likely show most in global oil markets. Russia is the third-largest crude producer in the world, accounting for about 11% of the globe’s supply. Significant energy infrastructure sits near Rostov-on-Don, the city Prigozhin’s forces seized. WTI and Brent crude, the U.S. and global benchmarks, respectively, were both trading about 0.6% higher on Monday after earlier jumping even more as traders monitored the rebellion.
4. All eyes on the court
The Supreme Court will wrap up a flurry of opinions in the coming days. It could decide two massive cases as soon as Tuesday. The top U.S. court will rule on the fate of President Joe Biden’s plan to forgive up to $20,000 per borrower in student debt, an outcome that will affect as many as 40 million Americans. The opinion will affect budgeting and financial planning for households across the country, along with their potential to spend on goods and services. The Supreme Court will also decide whether colleges can consider race as part of admissions decisions. The affirmative action ruling could change years of efforts by universities to make their student bodies better reflect the racial makeup of the country.
5. A bow on earnings season
A couple major reports will help to round out earnings season this week. S&P 500 earnings were broadly better than expected in the first quarter — and this week will show if two major consumer names will continue the trend.
– CNBC’s Jesse Pound, Clement Tan and Elliot Smith contributed to this report.
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Source link: https://www.cnbc.com/2023/06/26/5-things-to-know-before-the-stock-market-opens-monday.html