Federal Reserve, Cloudera, Snowflake, CrossFit: 5 Things You Must Know Wednesday

Stock futures are mixed; investors await the next steps from the Federal Reserve to support the U.S. economy; Cloudera could be a target of IBM, an analyst says.
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Here are five things you must know for Wednesday, June 10:

1. -- Stock Futures Mixed Ahead of Fed Meeting

Stock futures were mixed Wednesday as investors awaited a meeting of the Federal Reserve and indications from the central bank that it will continue to support the U.S. economy as it recovers from the coronavirus pandemic.

The Federal Reserve's rate-setting committee, the Federal Open Market Committee, is expected Wednesday 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.

Contracts linked to the Dow Jones Industrial Average declined 16 points, futures for the S&P 500 rose 2 points and Nasdaq futures were up 56 points.

Stocks closed mixed Tuesday with the S&P 500 falling 0.78%, a day after the index turned positive for 2020. The Dow dropped 1.09% to 27,272. The Nasdaq, however, finished up 0.29% and at an all-time high.

"The primary question remains, has the market’s recovery bought the Fed some time not to use all its bullets, or will they keep the pedal to the metal?” asked Stephen Innes of AxiCorp.

The Fed may have to keep supporting the economy if forecasts from the Organization for Economic Co-operation and Development are any guide. The Paris-based think tank predicts a 6% contraction in world GDP this year, a figure it said could worsen to 7.6% contraction if there is a second wave of coronavirus infections in the autumn.

2. -- Federal Reserve and CPI Highlight Wednesday's Calendar

The Federal Reserve will announce its decision on interest rates Wednesday at 2 p.m. ET, followed by a press conference from Federal Reserve Chairman Jerome Powell, who will be tasked with assuring investors the central bank will use any tools necessary to aid an economy severely weakened by the pandemic. 

The economic calendar Wednesday also includes the Consumer Price Index for May at 8:30 a.m. and Oil Inventories for the week ended June 5 at 10:30 a.m. 

Earnings are expected Wednesday from Guess  (GES) - Get Report, Red Robin Gourmet Burgers  (RRGB) - Get Report and United Natural Foods  (UNFI) - Get Report.

3. -- Cloudera Could Be Target of IBM, Says Analyst

Cloudera  (CLDR) - Get Report reportedly is exploring a sale, and IBM  (IBM) - Get Report could wind up the buyer, according to an analyst.

Shares of Cloudera were rising 2.5% to $12.30 in premarket trading Wednesday after soaring nearly 19% Tuesday after Bloomberg reported that the enterprise software company was fielding takeover bids, although no deal had yet been reached. 

D.A. Davidson analyst Rishi Jaluria wrote that IBM "is the most likely strategic buyer, especially given the partnership between Cloudera and IBM." The two companies have teamed up on data and artificial intelligence programs.

Cloudera could serve as a complement to IBM's hybrid cloud efforts and to Red Hat, Jaluria wrote. IBM acquired Red Hat, a maker of open source software, for $34 billion last year.

There's an "outside shot" of a Cloudera acquisition by Amazon's AWS, Google Cloud or Microsoft Azure, Jaluria added; a private-equity buyer also is possibility.

4. -- Cloud Data Company Snowflake Confidentially Files for IPO

Cloud data platform Snowflake confidentially filed initial public offering paperwork with the Securities and Exchange Commission, Bloomberg reported, citing people with knowledge of the matter.

Snowflake was valued at $12.4 billion in a February funding round, according to the report.

The San Mateo, California-based company is in talks with potential underwriters about a public listing that could come within months, one of the people told Bloomberg.

Snowflake raised $479 million in February from backers including Dragoneer Investment Group and Salesforce Ventures, an arm of Salesforce.com  (CRM) - Get Report. Snowflake announced an expanded partnership with Salesforce earlier this month.

Snowflake counts JetBlue and Conagra Brands among its 2,000 customers.

5. -- CrossFit CEO Steps Down

Greg Glassman stepped down as CEO of CrossFit following a report from BuzzFeed News that said the founder of the fitness company made several controversial statements during a private Zoom call with gym owners.

“We're not mourning for George Floyd — I don't think me or any of my staff are,” according to a full recording of the meeting obtained by BuzzFeed.

“Can you tell me why I should mourn for him? Other than that it’s the white thing to do - other than that, give me another reason,” Glassman, 63, asked a Minneapolis gym owner who had questioned why CrossFit hadn’t posted a statement about the protests across the country after the death of George Floyd.

Shortly after the BuzzFeed article was posted, the company released a statement from Glassman saying he had "decided to retire" and was stepping down as CEO.

Over the weekend, Glassman issued an apology for a tweet he made about the protests after Reebok cut ties with CrossFit.