Here are five things you must know for Monday, Aug. 16:
1. -- Stock Futures Fall as Wall Street Seeks Taper Guidance From the Fed
Stock futures declined Monday with the S&P 500 and Dow Jones Industrial Average slipping from record highs as investors looked ahead to further guidance from the Federal Reserve on how close it might be to tapering stimulus.
Contracts linked to the Dow Jones Industrial Average dropped 89 points, S&P 500 futures were down 11 points and Nasdaq futures fell 38 points.
The yield on the benchmark 10-year Treasury fell Monday to 1.278%.
The Dow and the S&P 500 both pushed to their fourth straight record closes Friday as Wall Street looked beyond falling U.S. consumer sentiment in July. For the week, the Dow rose 0.9% and the S&P 500 added 0.7%. The Nasdaq fell less than 0.1% last week.
The largest drop in sentiment since April 2020, however, also raised investors' concerns about the economic recovery and heightened the anticipation for an appearance by Federal Reserve Chairman Jerome Powell at a town hall on Tuesday and the release of minutes from the latest Fed meeting on Wednesday.
Several Fed officials lately have discussed just when the central bank might begin its tapering of bond purchases. The Fed has been buying $120 billion a month in Treasury, agency and mortgage bonds to keep interest rates low and support the economy during the pandemic.
The central bank has said it expects to keep rates near zero until the labor market reaches "maximum employment" and inflation runs above its 2% target. A strong consumer inflation report last week plus other solid economic data have added to the speculation on when the Fed might begin pulling back on economic support.
2. -- This Week's Economic Calendar
The economic calendar in the U.S. Monday includes the Empire State manufacturing index for August at 8:30 a.m. ET.
The calendar later in the week includes Retail Sales for July, Industrial Production, Housing Starts, Jobless Claims and minutes from the Federal Reserve's July 27-28 meeting.
Federal Reserve Chairman Jerome Powell will host a virtual town hall with educators and students on Tuesday at 1:30 p.m.
3. -- Nvidia and Walmart Report Earnings This Week
Reports are expected later this week from Walmart (WMT) - Get Walmart Inc. Report, Home Depot (HD) - Get Home Depot, Inc. (HD) Report, Lowe's (LOW) - Get Lowe's Companies, Inc. (LOW) Report, Target (TGT) - Get Target Corporation Report, TJX Cos. (TJX) - Get TJX Companies Inc Report, Analog Devices (ADI) - Get Analog Devices, Inc. Report, Cisco Systems (CSCO) - Get Cisco Systems, Inc. Report, Nvidia (NVDA) - Get NVIDIA Corporation Report, Estee Lauder (EL) - Get Estee Lauder Companies Inc. Class A Report, Macy's (M) - Get Macy's Inc Report, Applied Materials (AMAT) - Get Applied Materials, Inc. Report, Deere (DE) - Get Deere & Company Report and Foot Locker (FL) - Get Foot Locker, Inc. Report.
4. -- T-Mobile Investigates Data Breach Claims
T-Mobile said it was aware of the claims made by a hacker in a forum post and has been "actively investigating their validity."
"We do not have any additional information to share at this time," the company added in a statement.
Vice Media’s Motherboard was the first to report on the possible data breach.
The forum post itself doesn't mention T-Mobile, but the seller told Motherboard data has been obtained related to more than 100 million people, and that the data came from T-Mobile servers. The data include social security numbers, phone numbers, names, physical addresses, unique IMEI numbers, and driver's license information, the seller said.
T-Mobile has nearly 104.8 million U.S. customers.
The seller has been asking for 6 bitcoin, around $270,000, for a subset of the data containing 30 million social security numbers and driver's licenses. The seller said they were privately selling the rest of the data at the moment, Motherboard reported.
T-Mobile shares declined 1.08% to $143.37 in premarket trading Monday.
5. -- Hyatt Hotels to Buy Apple Leisure Group for $2.7 Billion
Hyatt Hotels (H) - Get Hyatt Hotels Corporation Class A Report agreed to acquire resort company Apple Leisure Group for $2.7 billion in cash from private-equity owners KKR (KKR) - Get KKR & Co. Inc. Class A Report and KSL Capital Partners.
The acquisition is a bet on the recovery in the leisure-travel space.
Apple Leisure is a major seller of U.S. charter flights and vacation packages for travel to Mexico and the Caribbean.
For Chicago-based Hyatt, one of the world’s biggest hospitality companies, the deal would expand its resort-management portfolio, The Wall Street Journal noted. The Journal reported early Sunday that a deal was imminent.
Hyatt declined 1.23% to $71.25 early Monday.