Here are the key news, trends, and analysis investors need to start their trading day:
1. Dow looks stable at 269 points after the start of the week
Traders will work on the floor of the New York Stock Exchange (NYSE) in New York on Monday, August 23, 2021.
Michael Nagel | Bloomberg | Getty Images
US stock futures were flat on Wednesday, the day after the Dow Jones Industrial Average fell 269 points, or nearly 0.8%, on ongoing concerns about the impact of the Covid Delta variant on economic reopening. The S&P 500 fell for the second year in a row after closing Thursday’s record. The Nasdaq fought for another record victory. After the bell, the original Meme stock GameStop will release the quarterly results.
The 10-year government bond yield, which is reversing the price, fell to 1.35% on Wednesday before the government released its latest JOLTS survey of job openings and turnover at 10 a.m. ET. The Federal Reserve releases its Beige Book survey of economic activity in its 12 districts at 2 p.m. ET.
Bitcoin was under pressure again early Wednesday. It fell as much as 10% on Tuesday, just a day after it topped $ 52,000 and hit its highest level since May. The volatility of the past few days came before and after El Salvador on Tuesday, which became the first country to adopt Bitcoin as legal tender.
2. Coinbase shares fall after the company announces the SEC is planning a lawsuit
Coinbase has received notification from the Securities and Exchange Commission of a possible enforcement action related to its interest-bearing product that it is planning to launch in the coming weeks. The cryptocurrency and services company received a Wells notice from the SEC a week ago saying the regulator intends to sue Coinbase over the product called Coinbase Lend, the company announced in a blog post on Tuesday evening . Coinbase’s shares fell 3% in pre-trading on Wednesday.
3. BlackRock responds to Soros’ criticism of China investment
BlackRock, the world’s largest wealth manager, has responded to billionaire George Soros’ sharp criticism of the company’s investments in China. In a letter in the Wall Street Journal on Tuesday, Soros described BlackRock’s initiative in China as a “tragic mistake” that would “harm the national security interests of the US and other democracies.” Soros’s comments come after BlackRock launched a range of mutual funds and other investment products aimed at Chinese consumers. BlackRock told CNBC on Wednesday that its Chinese mutual fund subsidiary launched its first fund there after raising over $ 1 billion from more than 111,000 investors.
4. The White House proposes a stopgap solution to avoid government shutdown
U.S. President Joe Biden will deliver remarks on the August Jobs Report at the White House in Washington on September 3, 2021.
Kevin Lamarque | Reuters
The White House this month is proposing a transitional measure to fund the government beyond the end of the fiscal year. The bill would include billions of dollars in aid to help people recover from Hurricane Ida and to help relocate Afghans who have fled Kabul. The plan to avoid a government shutdown comes as lawmakers haggle over a bipartisan infrastructure bill worth $ 1 trillion and a Democrat-backed budget adjustment package worth $ 3.5 trillion.
U.S. Senate Finance Committee Chairman Ron Wyden, D-Ore., Interviewed IRS Commissioner Charles P. Rettig at a Senate Finance Committee hearing on June 8, 2021.
Tom Williams | Swimming pool | Reuters
To pay for that $ 3.5 trillion spending plan, Democrats in Congress are collecting a variety of taxes, including new levies on the rich. Some proposals by the chairman of the Senate Finance Committee, Ron Wyden, call for so-called mark-to-market taxes on derivatives and carried interest, which can lead to profit taxes every year.
5. Amazon expands Grab and Go; Apple sets September event
The take-away options in this section are more aimed at families looking for a dinner solution, while the Amazon Go stores focus on serving breakfast and lunch.
Source: Lauren Thomas, CNBC
Amazon announced Wednesday that it is bringing its automated grab-and-go technology to two Whole Foods stores – one in California, the other in Washington, DC.Shoppers who want to skip the checkout can enter the store by doing either scan an app and put in a balance, or a debit card linked to their Amazon account, or put your palm over the company’s palm scanning payment system called Amazon One. Amazon stocks closed Tuesday 7% below their all-time high of $ 3,773.08 in July. The share was stable in the premarket on Wednesday.
Apple shares were also stable in the premarket. The stock hit an all-time high of $ 157.26 on Tuesday after the tech giant sent out invitations to the media for its annual product event in September. New iPhones are expected. Apple could also release new Apple Watch and AirPods models. The virtual event will be streamed on the Apple website. The company usually announces new iPhones in September. But last year Apple announced the iPhone 12 in October due to Covid. The September event was used to unveil new watches and iPads, as well as a streaming practice class subscription and a bunch of other Apple services.
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