Here are the top news, trends, and analysis that investors need to get their trading day started:
1. Dow futures rise as stocks head for earnings week
A Wall Street sign is seen near the New York Stock Exchange (NYSE) in New York City on May 4, 2021.
Brendan McDermid | Reuters
Futures contracts for the Dow Jones Industrial Average rose more than 150 points on Friday morning, the last day of trading in May, as Wall Street searched for a successful week. The Nasdaq Composite had the best performance this week, up almost 2%, while the S&P 500 and Dow gained around 1.1% and 0.7%, respectively. For the month, the S&P 500 and Dow are positive while the Nasdaq is down 1.6%.
Dow futures were backed by Salesforce, which rose more than 4% in premarket trading after an unexpectedly strong report for the first quarter.
2. Meme stocks are rising again
People wear face masks as they walk past a movie theater during the coronavirus disease (COVID-19) pandemic in Newport, New Jersey on April 2, 2021.
Eduardo Munoz | Reuters
The renewed surge in so-called meme stocks, popular on Reddit, showed no signs of slowing down. The shares of the cinema chain AMC rose more than 20% in premarket trading on Friday, while GameStop rose nearly 5%.
AMC’s share price more than doubled in the past week, while GameStop could open at its highest level since March.
3. Biden reveals a $ 5 trillion spending proposal
United States President Joe Biden speaks about the economy during a visit to Cuyahoga Community College in Cleveland, Ohio on May 27, 2021.
Evelyn Hockstein | Reuters
President Joe Biden is expected to post a proposal that will add $ 5 trillion in additional spending over the next decade, a source familiar with the proposal told CNBC. The proposal also provides for $ 3.6 trillion in spending to be raised during that period, leaving an additional net deficit of $ 1.4 trillion.
The new editions are for Biden’s proposals to fuel and expand economic recovery: the American Jobs Plan and the American Families Plan.
The plan calls for $ 300 billion of that spending to be added to the budget for fiscal 2022, bringing the total spending to $ 6 trillion for that period, according to the source.
4. Microsoft warns the SolarWinds hackers are back
The Russian hackers, believed to be responsible for the SolarWinds cyberattack, launched another attack, this time using emails from the U.S. Agency for International Development, according to Microsoft. The group known as Nobelium sent phishing emails to more than 3,000 accounts using a marketing email address from the Constant Contact platform used by the aid industry, Microsoft said in a blog post. The attack was targeted at organizations in at least 24 countries, and at least a quarter of those organizations are involved in international development, humanitarian and human rights work, Microsoft said.
5. Cathie Wood is downplaying inflation
Cathy Wood
Crystal Mercedes | CNBC
Don’t include Ark Invest’s Cathie Wood among the top investors worried about inflation. The Star fund manager said Thursday that deflation was indeed a bigger problem, forecasting that prices for commodities and key industrial products would fall later in the year once the demand surge from the economic reopening normalizes.
A deflationary environment would be good innovation technology stocks and Bitcoin, Wood said. She is a longstanding bull of both asset classes.
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