5 Things to Know Before the Stock Market Opens Friday, June 10

Here are the most important news, trends and analysis investors need to start their trading day:

1. Wall Street drops decisively after another hot inflation report

Traders work on the floor of the New York Stock Exchange

NYSE

US stock futures fell sharply after the inflation report before Friday’s bell showed a larger-than-expected rise. In the data, the 10-year Treasury yield initially jumped to over 3.08%. Rising bond yields on Thursday sent equities lower, with the Dow Jones Industrial Average down 638 points or nearly 2%. The S&P 500 and Nasdaq lost about 2.4% and 2.8%, respectively.

  • Top tech names struggled Thursday, with Facebook parent Meta Platforms down 6.4%, Amazon down more than 4% and Apple sinking 3.6%. Those stocks jumped in premarket trading on Friday.
  • However, Netflix dropped 4.5% in premarket trading after Goldman Sachs downgraded the stock to sell from neutral and cut its target price from $265 to $186 a share. Netflix closed nearly 5% lower on Thursday at nearly $193 a share.

2. Consumer inflation in May rose at the fastest pace since 1981

A supermarket in Washington, D.C. on May 26, 2022.

Nicholas Kamm | AFP | Getty Images

The May consumer price index rose 8.6% year-on-year, the fastest advance in more than 40 years. On a monthly basis, core CPI rose 1%, also better than expected. The Federal Reserve is expected to raise interest rates by half a point next week and another half a point in July. But after that, the pace for fighting four-decade high inflation is less clear. Bond yields have risen and the stock market has fallen on concern that the Fed’s tightening approach will have to become even more aggressive to contain price pressures, risking putting the economy into recession.

3. National average gas prices just 1 cent below $5 per gallon

Gasoline prices above $5.00 per gallon are displayed at gas stations in New Jersey, USA, on June 7, 2022.

Lokman Vural Elibol | Anadolu Agency | Getty Images

The national average price of a gallon of gas, according to the AAA, continues to rise, now just 1 cent less than $5, as oil prices continue to rise. West Texas Intermediate crude, the US benchmark, rose on Friday to trade above $122 a barrel. Those gains were, however, limited as traders feared that new lockdown measures in Shanghai for mass Covid testing could outpace oil and solid gas consumption for the world’s biggest consumer, the United States. But for now, peak summer demand in the US was boosting oil prices.

4. Two Stay-At-Home Actions Are Overwhelmed by Signs of Business Weakness

Shares of two companies that have thrived during the Covid pandemic tumbled premarket on Friday the morning after signs of weakness in their businesses.

Crushed stay-at-home inventories

DocuSign is down 25% premarket. The electronic signature software provider’s weaker-than-expected earnings in its fiscal first quarter overshadowed a revenue hit. Stitch Fix is ​​down about 14% in trades before the bell. The online custom style platform confirmed planned layoffs of 15% of salaried positions in its workforce as it reported disappointing quarterly results and warned about the current quarter.

5. Capitol Riot Chamber Panel Blames Trump for January 6 ‘Coup Attempt’

US President Donald Trump speaks with supporters of The Ellipse near the White House on January 6, 2021, in Washington, D.C.

Brendan Smialowski | AFP | Getty Images

The House select committee investigating the January 6 riot on Capitol Hill began airing its initial findings Thursday night at the first of a series of public hearings. The panel said the attack was not spontaneous, calling it an “attempted coup” and a direct result of then-defeated President Donald Trump’s effort to overturn the 2020 election. Trump, in a social media message after the hearing, criticized the committee for not showing “the many witnesses and positive statements” and reproducing “only negative images”. More hearings are expected in the coming weeks.

– CNBC Jesse Pound, Samantha Subin, Patti Dom, Jordan Novet, Lauren Thomas and Kevin Breuinger as well as the Associated Press contributed to this report.

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