Here are five things you must know for Monday, June 21:
1. -- Stock Futures Move Higher Monday
Stock futures moved higher Monday as investors processed signals from the Federal Reserve last week that it could boost interest rates and begin tapering asset purchases sooner than expected.
Contracts linked to the Dow Jones Industrial Average gained 210 points, S&P 500 futures were up 19 points and futures on the tech-heavy Nasdaq rose 65 points.
The S&P 500 finished its worst week since February on Friday after St. Louis Federal Reserve Bank President James Bullard said the central bank has started talks on trimming the pace of its $120 billion in monthly bond purchases. He also predicted the first rate increase may come as soon as 2022.
Bullard's comments followed those made from the central bank last week that it could raise rates twice in 2023 and that it expects inflation to rise 3.4% this year, considerably more than previous forecasts. Markets were caught off guard by the Fed's hawkish pivot since it had been assuring investors that any inflation spikes would only be temporary.
Investors will be monitoring closely an appearance before Congress Tuesday by Fed Chairman Jerome Powell.
The yield on the benchmark 10-year Treasury note fell early Monday to 1.441%.
2. -- Bitcoin Slumps as China's Crackdown Intensifies
Bitcoin prices dropped Monday as China intensified its crackdown on cryptocurrencies.
Bitcoin fell 5.84% to $32,770, and Ethereum, the second-biggest digital currency, declined nearly 8%.
The Chinese city of Ya’an was said to have begun a sweeping clampdown on crypto mining firms, Bloomberg reported.
A government official in Ya’an told at least one
Bitcoin miner that the city has promised to root out all Bitcoin and Ether mining operations within a year, Bloomberg reported, citing a person with knowledge of the situation.
Last month, China reiterated a call for a crackdown on Bitcoin mining and trading, while the People's Bank of China said digital coins weren't "real currencies."
Bitcoin reached a high of more than $64,000 in mid-April. It has stabilized between about $30,000 and $40,000 since collapsing last month.
3. -- Amazon's Prime Day Has Begun
Analysts at Telsey Advisory Group forecast this year’s Prime Day will generate between $11 billion and $12 billion in sales, with $8 billion to $8.5 billion coming from shoppers in the U.S.
TheStreet's Jim Cramer breaks down how he approached Amazon shares ahead of the big day.
TheStreet's Bret Kenwell said it has been months since Amazon has seen a strong, sustained rally. But the stock has been performing better leading up to Prime Day.
The stock has risen more than 7% year to date.
4. -- This Week's Calendar: Home Sales and GDP, FedEx and BlackBerry Earnings
The economic calendar in the U.S. Monday is bare but data will be released later in the week on home sales, jobless claims, durable goods orders, gross domestic product, manufacturing and personal incomes and personal spending.
Earnings reports are expected this week from Nike (NKE) - Get NIKE, Inc. (NKE) Report, FedEx (FDX) - Get FedEx Corporation Report, BlackBerry (BB) - Get BlackBerry Limited Report, KB Home (KBH) - Get KB Home Report, Rite Aid (RAD) - Get Rite Aid Corporation Report, IHS Markit (INFO) - Get IHS Markit Ltd. (INFO) Report, CarMax (KMX) - Get CarMax, Inc. Report, Accenture (ACN) - Get Accenture Plc Class A Report and Darden Restaurants (DRI) - Get Darden Restaurants, Inc. Report.
5. -- CNH Industrial to Buy Raven Industries for $2.1 Billion
CNH Industrial will pay $58 per share for Raven, a 50% premium to Raven's closing price Friday of $38.62.
Raven shares jumped more than 47% in premarket trading Monday to $56.86. CNH shares fell slightly.