Here are five things you must know for Tuesday, July 6:
1. -- Stock Futures Slip and Oil Prices Surge
Stock futures slipped Tuesday as Wall Street came out of a long holiday weekend and oil prices surged after a breakdown of talks among the world's largest oil producers.
Contracts linked to the Dow Jones Industrial Average fell 48 points, S&P 500 futures were down 3 points and Nasdaq futures rose 16 points.
U.S. oil prices rose to the highest levels since November 2014 after OPEC and its allies broke off talks Monday over a production increase. The United Arab Emirates refused to agree to a Saudi-backed deal to boost output, The Wall Street Journal reported.
West Texas Intermediate crude, the U.S. benchmark, traded early Tuesday at $75.85 a barrel, a jump of 0.92%. It hit a high earlier of $76.98 a barrel.
Investors are concerned the oil impasse could escalate into a price war that could stall a global economic recovery just as demand rebounds from the coronavirus pandemic.
The White House said it was monitoring the situation.
"The United States is closely monitoring the OPEC+ negotiations and their impact on the global economic recovery from the COVID-19 pandemic," a White House spokesperson said in a statement.
"We are not a party to these talks, but administration officials have been engaged with relevant capitals to urge a compromise solution that will allow proposed production increases to move forward," the statement added.
In the U.S., all three major stock market indexes closed at records Friday after the economy added more jobs than expected in June and hourly wage increases were below forecasts, giving rise to the belief the Federal Reserve won't be hiking interest rates anytime soon.
However, a jump in oil prices adds to recent inflationary pressures and fears the Fed could begin pulling back on support sooner rather than later.
2. -- This Week's Economic Calendar: Fed Minutes
The economic calendar in the U.S. Tuesday includes the Markit Services PMI (final) for June at 9:45 a.m. ET and the ISM Services Index for June at 10 a.m.
Minutes from the Federal Reserve's meeting on June 15-16 will be released on Wednesday. Investors will be paying close attention to the minutes, hoping they shed some light on the central bank's recent hawkish tilt that caught markets by surprise.
3. -- Didi Slumps as China Cracks Down on the Ride-Hailing Giant
U.S.-listed shares of Didi Global (DIDI) - Get Report fell sharply Tuesday after the Cyberspace Administration of China late last week began a cybersecurity review into Didi and blocked the company’s app from accepting new users, and then on Sunday ordered the company’s app to be removed from stores.
American depositary shares of Didi, the ride-hailing giant, fell 19.9% to $12.44. Didi went public last week at $14. It raised $4.4 billion in its initial public offering, the second-biggest in the U.S. by a company based in China.
The Wall Street Journal, citing people with knowledge of the matter, reported that weeks before Didi went public in the U.S., the Cyberspace Administration of China suggested the company delay its initial public offering and urged it to conduct a thorough self-examination of its network security.
In the absence of an outright order to halt the IPO, Didi went ahead with the listing, according to the Journal.
Officials in Beijing are wary of Didi’s troves of data potentially falling into foreign hands as a result of greater public disclosure associated with the U.S. listing, the people told the Journal.
4. -- Bitcoin Prices Steady
Bitcoin prices steadied Tuesday after a recovery over the weekend and a slump on Monday.
Bitcoin was at $33,961, down 1.55%. The world's largest cryptocurrency has risen more than 16% in 2021 but has dropped nearly 50% from its all-time high of $64,829, according to CoinDesk.
Bitcoin late last month slid below $30,000, a key support level, as China amped up its crackdown that has all but banned transactions in digital currencies in the country.
5. -- Andy Jassy Is Now Amazon's CEO
Bezos will remain executive chairman.
He'll be keeping busy. In about two weeks, Bezos will be flying into space aboard a rocket made by Blue Origin, Bezos' space company. Bezos will be accompanied by his brother, a female aerospace pioneer and the winner of a $28 million charity auction.