Here are five things you must know for Friday, June 11:
1. -- Stock Futures Rise After S&P 500 Sets Record
Stock futures were higher Friday after the S&P 500 set a record high as investors have fallen in line with the Federal Reserve's belief that inflation spikes will prove to be transitory.
Contracts linked to the Dow Jones Industrial Average rose 71 points, S&P 500 futures gained 6 points and Nasdaq futures were down 26 points.
The S&P 500's record closing high, its first since May 7, came as investors shook off hotter-than-expected inflation data for May. Near-term price pressures are being seen, however, in categories that will benefit from the economy's recovery and aren't expected to be persistent.
"There are plenty of indicators pointing to near-term spike in inflation - acute labor shortage, supply chain constraints, and cyclical highs for commodity prices," said Anu Gaggar, senior global investment analyst at Commonwealth Financial Network.
"However, the belief remains that these are cyclical pressures that are to be expected when an economy is in the early stages of a strong rebound. As the cycle matures, these inflation pressures will subside owing to the structural forces that have kept inflation low for long," Gaggar added.
Consumer prices last month increased at the fastest pace in more than a decade, according to data from the Labor Department.
The fear on Wall Street has been that rising price pressures could challenge the Federal Reserve's accommodative stance as the world's biggest economy continues its recovery from the COVID-19 pandemic.
The yield on the benchmark 10-year U.S. Treasury yield early Friday was at 1.43%, its lowest point since early March.
2. -- Tesla Delivers the First Model S Plaid
Tesla (TSLA) - Get Report CEO Elon Musk said his electric-vehicle company built the Model S Plaid, a high-end, ultra-speedy version of Tesla's sports sedan, because "we've got to show that an electric car is the best car, hands down."
Musk delivered the first Model S Plaid in a live-streamed event Thursday evening.
The $123,000 model, which drew its name from the 1980s movie comedy “Spaceballs,” does zero to 60 mph in under two seconds, according to Tesla’s specifications. It offers a 390-mile range, a 200-mph top speed and up to 1,020 horsepower. The acceleration has been compared with that of a catapult-launched roller coaster.
Musk said improved charging allow 187 miles of range in 15 minutes.
The Model S Plaid is seen by some as a move by Tesla to fend off high-end offerings from Mercedes Benz and Porsche which are also making moves in the electric vehicle space.
Tesla shares were rising slightly in premarket trading Friday to $610.23.
3. -- Chinese Ride-Hailing Giant Didi Files to Go Public
Chinese ride-hailing giant Didi Chuxing filed to go public, looking to begin trading in the U.S. next month in what could be the largest initial public offering in the world this year.
Didi, which filed under its formal name of Xiaoju Kuaizhi Inc., could fetch a valuation upward of $70 billion, The Wall Street Journal reported, citing people familiar with the matter.
The company revealed in the filings for its IPO that it lost 10.68 billion yuan, or $1.63 billion, in 2020. Revenue last year was close to $22 billion.
In the first quarter of 2021, Didi reported earnings of $837 million on revenue of $6.4 billion as China recovered from the coronavirus pandemic
4. -- Vertex Tumbles After Halting Study of Liver Disease Drug
The stock was down 11.36% to $192.15 in premarket trading Friday.
The liver disease - alpha-1 antitrypsin
deficiency - is an inherited disorder where the patient’s liver
doesn’t make a protein needed to protect itself and the lungs. Cincinnati Children's Hospital said it was the most common genetic disease that leads to liver transplant in children.
Vertex said VX-864 wasn't likely to substantially benefit patients.
VX-864 met its primary endpoint and was well tolerated, the study went ahead with no interruptions due to adverse effects, and the drug's mechanism was proved to work.
But the "magnitude of the treatment effect observed [was] unlikely to translate into substantial clinical benefit," the company said.
5. -- Chewy Says Retail Pet Trends Are Jumping
Singh told Cramer that the increase in pet adoption wasn't just a pandemic event. The online pet retailer works with more than 6,000 pet shelters across the nation that report adoptions have continued growing by double digits.
Chewy surprised Wall Street Thursday, swinging to a profit in the fiscal first quarter profit on a revenue jump of 32%. The company reported, however, that supply constraints left it out of stock of some products, hurting the quarter's revenue.
Chewy shares declined 0.82% in premarket trading to $78.70.