Publish date:

Boeing, MicroStrategy, Corsair, Federal Reserve: 5 Things You Must Know

Stock futures turn mixed as Wall Street awaits the start of the Fed meeting; the U.S. and the European Union enter a five-year truce over aircraft subsidies.

Here are five things you must know for Tuesday, June 15:

1. -- Stock Futures Mixed as Wall Street Awaits the Fed

Stock futures turned mixed Tuesday after the S&P 500 set another record on the strength of gains in big technology names such as Apple  (AAPL) - Get Report.

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.

Apple and Facebook are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.

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.

Earnings reports are expected Tuesday from Oracle  (ORCL) - Get Report, H&R Block  (HRB) - Get Report and La-Z-Boy  (LZB) - Get Report.

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.

Boeing  (BA) - Get Report shares rose 0.69% in premarket trading Tuesday to $246.84, while Airbus  (EADSY) - Get Report gained 0.6% in Paris.

TheStreet Recommends

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.

Boeing is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells BA? Learn more now.

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.

Cramer's case in point on his "Mad Money" program Monday evening was Corsair Gaming  (CRSR) - Get Report, the gaming and content equipment-maker.

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.

Cramer's Mad Money Recap: FAANG, Microsoft, PayPal

5. -- MicroStrategy to Sell $1 Billion of Stock to Buy More Bitcoin

MicroStrategy  (MSTR) - Get Report said in a regulatory filing that it plans to sell up to $1 billion in 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.