Here is what you need to know on Tuesday, June 15:
Equity markets were purring along nicely until a little data wobble moments ago. The weak retail sales number (-1.3% v -0.7%) may put a little dent in investor enthusiasm for making more record highs. Added to that, US Producer Prices hit a record growth rate of 6.6%. That is the highest reading ever recorded. This is the last set of data the Fed will be looking at, so how will that affect thinking? The inflation genie is well out of the bottle, lamp! But can it be controlled? Especially now with the Fed day looming on Wednesday, risk aversion is likely to dominate the next few sessions. Rumours continue to circulate that the Fed may address taper talk while at the same time trying to convince markets that it is ahead of the curve and not about to hit equity markets. Regardless, this record PPI number may have forced the Fed's hand.
The currency and bond markets remain unimpressed as equities always seem to swing more wildly. The dollar is following the higher rate thinking and appreciating versus the euro to 1.21, but US yields are unmoved as of now. They will likely awaken, however, before the day is out. AMC continues to astound by carrying on the rally. You just cannot keep a good cinema down. AMC popped another 15% on Monday. With another huge options expiry this Friday, the dust looks far from settled.
Travel stocks are back in vogue as the EU is to remove travel restrictions to US travellers this week. The goodwill between the US and EU continues with the trade dispute over Boeing (BA) and Airbus (EADS) seemingly settled.
The dollar as mentioned is strengthening on the PPI and talk of Fed tapering, at 1.21 now versus the euro. Oil is up at $71.61, and Bitcoin remains at $40,000.
European markets are higher with Dax +0.5%, EuroStoxx +0.3%, and the FTSE +0.4%.
US Futures are all flat.
Wall Street top news
US PPI hits a record of 6.6% growth for May.
US Retail Sales drop 1.3% versus a 0.7% drop expected.
EU and US agree to suspend 17-year tariff dispute over Boeing and Airbus.
President Biden to meet President Putin in Geneva on Wednesday.
Sage Therapeutics (SAGE) announced Phase 3 trial results for Zuranolone. Stock down 12% premarket.
EHang Holdings (EH) up 8% premarket on sales results.
DraftKings (DKNG) drops 8% after Hindenburg Research publishes a report.
Vroom (VRM) down 6% premarket on convertible note offering announced Monday.
Ping Identity Holdings (PING) announces common stock offering by shareholders, stock down 6% premarket.
Boeing (BA) EU and the US announce a resolution of dispute.
ExxonMobil (XOM) Bank of America reiterates buy, CNBC.
AZN says experimental antibody treatment to treat covid did not meet its end goal.
Cracker Barrel (CBRL) announces a private offering of convertible notes.
Novavax (NVAX) announces positive results from a study on a combination of flu and covid vaccines.
Vimeo (VMEO) revenue in May rose 42% YoY.
Upgrades, downgrades and premarket movers
Source: Benzinga Pro
The author is long RIDE calls and AMC puts
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