Here are five things you must know for Tuesday, June 15:
1. -- Stock Futures Mixed as Wall Street Awaits the Fed
Contracts linked to the Dow Jones Industrial Average fell 6 points, S&P 500 futures were up 3 points and Nasdaq futures rose 19 points. The yield on the benchmark 10-year Treasury note slipped early Tuesday to 1.497%.
Investors will be watching the Federal Reserve's policy-setting meeting that begins Tuesday. The central bank will make an announcement on interest rates Wednesday, followed by a news conference from Fed Chairman Jerome Powell.
The Fed isn't expected to take any action with respect to rates or a tapering of its $120 billion of monthly asset purchases. But Wall Street will be monitoring the meeting closely for the Fed's forecasts on inflation and any hints on when the central bank might begin pulling back on monetary stimulus.
Economists surveyed by Bloomberg expect the Federal Reserve to reaffirm the pace of bond purchases this week, even if it delivers projections for higher rates in 2023.
Both the S&P 500 and Nasdaq closed at records on Monday as Wall Street prepared for the Fed meeting. Besides Apple, the indexes were led higher by strong gains in shares of Facebook (FB) - Get Report and Netflix (NFLX) - Get Report.
2. -- Tuesday's Calendar: Retail Sales, Oracle Earnings
The economic calendar in the U.S. Tuesday includes Retail Sales for May at 8:30 a.m. ET, the Producer Price Index (final demand) for May at 8:30 a.m., the Empire State Manufacturing Index for June at 8:30 a.m. and Industrial Production for May at 9:15 a.m.
The Federal Reserve's two-day meeting begins Tuesday. An announcement on interest rates from the Fed will come on Wednesday at 2 p.m., followed by a press conference from Fed Chairman Jerome Powell.
3. -- U.S. and European Union in 5-Year Truce Over Aircraft Subsidies
The U.S. and the European Union agreed to extend a tariff truce for five years that puts aside a dispute over aircraft subsidies.
The agreement was spurred by a growing awareness
that China's state-sponsored aerospace manufacturer Commercial Aircraft Corp. of China, or Comac, was on track to become a legitimate rival in global aircraft making by the end of the decade, Bloomberg reported earlier.
The long-running dispute saw the U.S. and Europe impose tariffs on $11.5 billion of each other’s exports.
U.S. Trade Representative Katherine Tai, speaking to
reporters in Brussels on Tuesday, said the tariffs would remain
suspended as long as the terms of the agreement are upheld and
while they work on addressing issues including outstanding
subsidies already paid, Bloomberg reported.
4. -- Be Careful Following 'Meme' Stocks, Cramer Says
Think you're "sticking it to the man" with your portfolio? If so, Jim Cramer said you're likely just hurting yourself.
The stock surged in early trading Monday after being mentioned on WallStreetBets, only to have the short-sellers swoop in and erase most of those gains by the close of trading. The stock finished Monday with a gain of 11.25% to $36. In premarket trading Tuesday, Corsair Gaming rose 3.86% to $37.39.
Cramer said if you bought shares over $40 on Monday, you got hurt big time. But that's what happens when you follow a meme.
5. -- MicroStrategy to Sell $1 Billion of Stock to Buy More Bitcoin
The company filed a “shelf” registration with the Securities and Exchange Commission to sell as much as $1 billion in common stock for general purposes, including the purchase of more Bitcoin.
MicroStrategy earlier Monday said it completed the sale of $500 million in bonds to buy more of the world's largest cryptocurrency.
The stock was rising 1.09% to $605 in premarket trading. Bitcoin gained 2.17% early Tuesday to $40,052.