5 things to know before the stock market opens Wednesday, June 2
Here are the most important news, trends and analysis that investors need to start their trading day:
Traders work on the floor of the New York Stock Exchange.
U.S. stock futures were relatively flat after the Dow gave up most of a 300-point gain by Tuesday’s close. The 30-stock average ended 45 points higher. The first day of June also started out muted for the S&P 500 and Nasdaq as optimism about the economic reopening met lingering angst about inflation. Following strength last month, the Dow and S&P 500 were less than 1% from their May record closes. The Nasdaq, which dropped in May, was nearly 2.9% away from its late April record close.
Offshore oil platforms are seen on April 20, 2020 in Huntington Beach, California.
Michael Heiman | Getty Images
U.S. oil prices jumped 1% on Wednesday to more than $68 per barrel, trading at levels not seen since October 2018. As more and more people are getting out and about in 2021 after months of stay-at-home precautions, U.S. benchmark crude prices have jumped 40% year to date. The spike in oil has been one of many commodities that have increased worries about price pressures in the recovering economy.
Shares of AMC Entertainment skyrocketed 20% in Wednesday’s premarket, one day after a similar gain. AMC wants to connect with its shareholder base, announcing a new way for investors in the movie theater chain to sign up for special benefits such as free popcorn. On Tuesday, AMC said in a securities filing it raised $230.5 million in a stock sale to depressed debt firm Mudrick Capital Management. CNBC’s Andrew Ross Sorkin confirmed that Mudrick sold those new AMC shares immediately for a profit. As of Tuesday’s close, interest among retail investors on Reddit’s WallStreetBets forum pushed AMC shares up 1,400% in 2021.
Shares of Samsung Publishing, a major shareholder in the producer of “Baby Shark,” soared in trading in South Korea trading Wednesday after a tweet by Tesla CEO Elon Musk about the viral children’s song. Musk wrote on Twitter on Tuesday evening: “Baby Shark crushes all! More views than humans.”
According to a Wall Street Journal report, the SEC admonished Musk last spring for allegedly violating terms of a settlement agreement. The financial regulators were incensed by Musk tweets about Tesla’s stock price being too high and those about solar rooftop production numbers without an attorney’s approval.
A visual representation of digital cryptocurrencies Dogecoin and Bitcoin.
Yuriko Nakao | Getty Images News | Getty Images
Dogecoin jumped another 28% to 42 cents per unit Wednesday after Coinbase began offering its Pro users the option to trade the cryptocurrency, which started as a joke but has exploded higher this year. Helped by frequent tweets from Musk and other influencers, dogecoin went from trading at just fractions of a penny in January. However, even with those incredible gains, dogecoin was actually about 40% below last month’s all-time highs.
Monitors display Coinbase signage during the company’s initial public offering (IPO) at the Nasdaq market site April 14, 2021 in New York City.
Robert Nickelsberg | Getty Images
Coinbase, one of the world’s largest crypto exchanges, went public on the Nasdaq in April and soared as high as $429.54 per share on its first day of trading. The stock closed below its direct listing reference price of $250 last month, and it’s been languishing there for weeks. Coinbase rose about 1% in Wednesday’s premarket after closing up a similar amount Tuesday to $238.93.
Employees in the parking lot of the JBS Beef Production Facility in Greeley, Colorado, U.S., on Tuesday, June 1, 2021. A cyberattack on JBS SA, the world’s largest meat producer, has forced the shutdown of some of the largest slaughterhouses globally, and there are signs that the closures are spreading.
Michael Ciaglo | Bloomberg | Getty Images
The world’s largest meat processing company is getting back online after production around the globe was disrupted by a cyberattack just weeks after a similar hack shut down a major U.S. oil pipeline. Brazil’s JBS said late Tuesday it made “significant progress” in dealing with the attack and expects the “vast majority” of its plants to be operating Wednesday. Earlier Tuesday, the White House said JBS notified the U.S. government of a ransom demand from a criminal organization likely based in Russia.