Here are the top news, trends, and analysis investors need to start their trading day:
1. Dow will pull back from Friday’s record high
Traders on the floor of the New York Stock Exchange
Dow futures fell more than 100 points on Monday, suggesting a retreat on Wall Street for the 30-share average from Friday’s record high. The Dow ended last week up 448 points, or 1.3%. The S&P 500 and Nasdaq also gained roughly 1% each, with both record closings also being recorded. Friday’s rally, which reversed a broad sell-off in the previous session, was enough to push all three benchmarks into positive territory for the past week.
Ahead of the major inflation reports on Tuesday and Wednesday – and whether the Federal Reserve believes the mounting pressure on prices is temporary – the US 10-year Treasury yield fell to around 1.33% on Monday. The benchmark yield fell to 1.25% on Thursday, a level not seen since February. The 10-year yield hit a 14-month high of 1.78% in March. It started at less than 1% in 2021.
2. Banks are starting what is expected to be an incredible profitable season
A combined file photo shows Wells Fargo, Citibank, Morgan Stanley, JPMorgan Chase, Bank of America and Goldman Sachs.
The second quarter reporting season kicks off this week – and if estimates suggest incredible growth, such results could confirm a market that can continue to easily shake off any concerns about its steady rise to record high after record high. S&P 500 companies’ earnings are expected to increase 65% over the same period last year during the depths of the Covid pandemic in the April-June quarter, according to Refinitiv. Banks begin quarterly reporting with JPMorgan Chase and Goldman Sachs on Tuesday; Bank of America, Citigroup, and Wells Fargo on Wednesday; and Morgan Stanley on Thursday.
3. Richard Branson hits Jeff Bezos, Elon Musk into space
Billionaire Richard Branson reacts aboard Virgin Galactic’s VSS Unity passenger rocket plane after reaching the edge of space over Spaceport America near Truth or Consequences, New Mexico, the United States, July 11, 2021, in a video still Has.
Virgo Galactic | via Reuters
Richard Branson has achieved his dream of reaching space after nearly 17 years of development and over a billion dollars invested in Virgin Galactic. Speaking from the cabin of his spaceship on Sunday, Branson described the flight as “the complete experience of a lifetime”. After landing, he said, “I’ve dreamed of this moment since I was a child, and frankly, nothing could prepare you for seeing Earth from space.”
Jeff Bezos is scheduled to take the maiden flight of his space company Blue Origin on July 20th. Branson started before Bezos and Elon Musk and was the first of the multi-billion dollar space company founders to drive his own spaceship. The Wall Street Journal said Musk had bought a ticket on a future Virgin Galactic flight. Neither Musk nor its space company SpaceX immediately responded to CNBC for comment.
4. Pfizer meets with US officials about the Covid booster vaccination
New Yorkers, 12 and older, will be vaccinated on June 13, 2021 at the St. Anthony of Padua Roman Catholic Church in the Bronx of New York City, United States.
Tayfun Coskun | Anadolu Agency | Getty Images
Pfizer plans to meet with senior U.S. health officials on Monday to lobby for state approval of a third dose of its Covid vaccine. On Sunday, Dr. Anthony Fauci didn’t deny the opportunity but said it was too early for the government to recommend another injection. President Joe Biden’s senior medical advisor said clinical studies and laboratory data had not fully confirmed the need for a refresh of the current two-shot vaccines from Pfizer and Moderna or the one-shot regimen from Johnson & Johnson. Fauci said the CDC and FDA did the right thing by rejecting Pfizer’s testimony last week calling for another shot.
5. China’s tech companies have been caught in a government crackdown
A symbol of TikTok (Douyin) is pictured at The Place shopping mall at dusk on August 22, 2020 in Beijing, China.
VCG | Visual China Group | Getty Images
In the recent aftermath of the Chinese government’s crackdown on the country’s tech companies, the owner of TikTok has reportedly put its offshore IPO plans on hold. ByteDance took a different approach than Chinese ride-hailing giant Didi, which went up and running in the US in late June when it received a warning from the Chinese government, according to The Wall Street Journal.
The Chinese market regulator said Saturday it would block Tencent’s plan to merge the country’s two leading video game streaming sites, Huya and DouYu, on antitrust grounds. Tencent is Huya’s largest shareholder with 36.9% and owns over a third of DouYu. Both companies are listed in the United States and have a combined market value of $ 5.3 billion.
– Reuters contributed to this report. Follow all market activity like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.