Here are five things you must know for Tuesday, June 9:
1. -- Stock Futures Fall as Investors Pull Back After Historic Rally
Stock futures traded lower Tuesday as investors pulled back after the historic rally on Wall Street that saw the S&P 500 claw back all its losses for the year.
Contracts linked to the Dow Jones Industrial Average fell 286 points, futures for the S&P 500 tumbled 28 points and Nasdaq futures slumped 46 points.
U.S. stocks finished higher Monday and the Nasdaq closed at a record high on optimism about the strength of the economic recovery.
The Dow gained 461 points, or 1.7%, to close at 27,572, rising for the sixth consecutive session.
The S&P 500, which rallied to its highest level since February, closed up 1.2%, and the Nasdaq Composite jumped 1.13% to a record 9,924.
The gains have been fueled in part by trillions of dollars in central bank and government support and hopes for a so-called V-shaped economic recovery from the coronavirus pandemic.
However, there are concerns that markets have risen too far and too fast over the past two months, particularly after the National Bureau of Economic Research confirmed the United States entered into a recession in February.
2. -- Fed Meeting Kicks Off, Chewy Reports Earnings
The economic calendar Tuesday includes the start of the two-day meeting of the Federal Open Market Committee.
The Federal Reserve's rate-setting committee is expected to keep rates near zero and issue no major policy decisions. However, Fed-watchers will be curious to see whether May's employment data has changed the body's economic projections.
The Fed will announce its decision on interest rates Wednesday afternoon followed by a press conference from Federal Reserve Chairman Jerome Powell.
The calendar Tuesday also includes the Job Openings and Labor Turnover Survey for April at 10 a.m. ET.
Earnings are expected Tuesday from Chewy (CHWY) - Get Free Report, Signet Jewelers (SIG) - Get Free Report, AMC Entertainment (AMC) - Get Free Report, GameStop (GME) - Get Free Report and Five Below (FIVE) - Get Free Report.
3. -- IBM Ends Its Facial Recognition Business
CEO Arvind Krishna, in a letter to Congress that was posted on IBM's website, said the company "firmly opposes and will not condone uses of any [facial recognition] technology, including facial recognition technology offered by other vendors, for mass surveillance, racial profiling, violations of basic human rights and freedoms, or any purpose which is not consistent with our values and Principles of Trust and Transparency.”
The CEO added it was important to begin a national dialogue on "whether and how facial recognition technology should be employed by domestic law enforcement agencies.”
Krishna noted that artificial Intelligence was a "powerful tool" for law enforcement but "vendors and users of Al systems have a shared responsibility to ensure that Al is tested for bias, particularity when used in law enforcement, and that such bias testing is audited and reported."
IBM's move comes amid nationwide protests over police brutality and discrimination.
4. -- Cheseapeake Energy Reportedly Planning to File for Bankruptcy
Bloomberg, citing people familiar with the matter, said the filing could hand control of Chesapeake to senior lenders.
A spokesman for Chesapeake declined to comment for Bloomberg.
Chesapeake is negotiating a restructuring support agreement that could see certain holders take a majority of the equity in bankruptcy. The support agreement remains fluid and the terms could change, the people told Bloomberg.
Shares of Chesapeake fell 57.79% in premarket trading Tuesday to $29.51 a share after soaring 181% in Monday's session.
5. -- Vroom Raises $468 Million in Upsized IPO
The initial public offering of Vroom Inc. was expanded to 21.25 million shares and the price was boosted to $22 a share, raising $468 million for the online seller of used vehicles.
Vroom earlier had marketed 18.75 million shares for $18 to $20 each.
The company, whose backers include L Catterton, General Catalyst Partners and T. Rowe Price Associates, moved up the pricing of the IPO to Monday after earlier planning to sell the shares on Wednesday, according to a report from Bloomberg.
The company is valued in the offering at more than $2.5 billion.
Vroom’s shares are expected to begin trading Tuesday on the Nasdaq under the symbol "VRM."