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Facebook, Google, Bitcoin ETF, Morgan Stanley - 5 Things You Must Know

Stock futures wobble Tuesday, a day after the S&P 500 and Nasdaq closed at record highs; a judge dismisses two antitrust suits filed by the federal government against Facebook; Cathie Wood's ARK seeks to create a Bitcoin ETF; Morgan Stanley doubles its dividend.

Here are five things you must know for Tuesday, June 29:

1. -- Stock Futures Wobble After S&P 500 and Nasdaq Set Records

Stock futures wobbled Tuesday, a day after the S&P 500 and Nasdaq closed at record highs, as investors weighed whether an economic recovery might be stalled by a worrying rise of cases of the highly transmissible coronavirus Delta variant.

Contracts linked to the Dow Jones Industrial Average rose 52 points, S&P 500 futures rose 1 point and Nasdaq futures declined 7 points. 

The yield on the benchmark 10-year Treasury note rose Tuesday to 1.482%.

Asian stocks fell for a second day as countries in the region struggled to contain an outbreak of the Delta variant of the virus.

“The Delta variant has also emerged in our client
conversations as a potential threat to reflation/inflation,” J.P. Morgan Chase strategists led by Marko Kolanovic told Bloomberg. “The economic consequences are likely to be limited given progress on vaccinations across developed market economies. It could, however, pose some risk of a delay in the recovery in
countries where vaccination rates remain lower.”

The S&P 500 and Nasdaq closed at record highs on Monday as investors turned to technology shares and away from equities associated with the economy's reopening amid the Delta variant's surge.

Investors are anticipating the release Friday of the U.S. jobs report for June, in which economists expect the country to have added 700,000 jobs during the month.

2. -- Tuesday's Calendar: Case-Shiller, Consumer Confidence

The economic calendar in the U.S. Tuesday includes the Case-Shiller Home Price Index for April at 9 a.m. ET and Consumer Confidence for June at 10 a.m.

Earnings reports are expected Tuesday from Factset Research Systems  (FDS) - Get Report and Enerpac Tool Group  (EPAC) - Get Report.

3. -- Facebook Wins Dismissal of Monopoly Lawsuits

Facebook  (FB) - Get Report edged higher in premarket trading Tuesday after a judge dismissed two antitrust suits filed by the federal government and by a group of states against the social media giant.

U.S. District Judge James Boasberg in Washington said the Federal Trade Commission didn’t prove that Facebook represents a monopoly in the social networking space.

“Although the court does not agree with all of Facebook’s contentions here, it ultimately concurs that the agency’s complaint is legally insufficient and must therefore be dismissed,” Boasberg wrote.

The suit was filed by the U.S. Federal Trade Commission and state attorneys general led by New York’s Letitia James.

Boasberg said the FTC can refile the complaint within 30 days.

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Facebook closed more than 4% higher on Monday at $355.64 and its market value crossed $1 trillion, according to Bloomberg. It was rising 0.46% in premarket trading Tuesday.

“We are pleased that (Monday's) decisions recognize the
defects in the government complaints filed against Facebook,” a company spokesman said.

The digital ad market practices of Alphabet's  (GOOGL) - Get Report Google, meanwhile, have come under increased scrutiny in recent months from antitrust investigators at the U.S. Justice Department, Bloomberg reported, citing people familiar with the matter.

Facebook and Alphabet 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.

4. -- Cathie Wood's ARK Seeks to Create Bitcoin ETF

Cathie Wood’s ARK Invest will partner with 21Shares U.S. LLC to file for the launch of the ARK 21Shares Bitcoin ETF.

ARK and 21Shares are joining a crowded field of competitors vying to be the first U.S. bitcoin ETF approved, according to David Dierking of ETF Focus.

Wood has been a big Bitcoin and cryptocurrency bull for a while, Dierking noted. The Grayscale Bitcoin Trust  (GBTC) - Get Report, perhaps the closest thing to a bitcoin ETF in the United States at the moment, already is a top 10 holding in the ARK Next Generation ETF  (ARKW) - Get Report at nearly 4% of total assets. 

The ARK 21Shares Bitcoin ETF will trade under symbol "ARKB."

21Shares is a crypto exchange-traded product provider in Europe. It has about $2 billion in assets spread across more than a dozen ETF products, including those focused on Bitcoin, Ethereum, Ripple, Polkadot and Cardano. 

5. -- Morgan Stanley Doubles Dividend and Other Big Banks Boost Payouts

Morgan Stanley  (MS) - Get Report doubled its quarterly dividend to 70 cents a share, the first of the big U.S. banks to do so after the banks passed the Federal Reserve's stress tests and were freed from restrictions on paying dividends and buying back stock.

“Morgan Stanley has accumulated significant excess capital
over the past several years and now has one of the largest capital buffers in the industry,” said CEO James Gorman in a statement.

Morgan Stanley also announced it would repurchase as much as $12 billion in stock through June 2022.

Wells Fargo  (WFC) - Get Report doubled its dividend to 20 cents a share and said it would buy back $18 billion of stock.

Goldman Sachs  (GS) - Get Report, meanwhile, lifted its quarterly dividend by 60% to $2 a share, and JPMorgan Chase  (JPM) - Get Report boosted its dividend to $1 from 90 cents.

“All 23 large banks tested remained well above their risk-based minimum capital requirements” and “the additional restrictions put in place during the COVID event will end,” the Federal Reserve said last week.

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