5 things to know before the stock market opens Tuesday
Here are the most important news, trends and analysis that investors need to start their trading day:
- Dow looks to extend its winning streak to four sessions
- Bitcoin stable after Elon Musk said he spoke to miners
- Amazon nears deal to buy MGM Studios for nearly $9 billion
- Business groups form coalition to oppose Biden tax hike proposals
- Police reform still stalled 1 year since George Floyd's death
1. Dow looks to extend its winning streak to four sessions
U.S. stock futures rose Tuesday, setting up the Dow to add to its three-session winning streak as the 10-year Treasury yield dipped below 1.6%. The 30-stock average started the new week with a gain of 186 points, or 0.6%, the S&P 500 jumped 1% and the Nasdaq popped 1.4%. Those gains, fueled by a bounce in tech stocks, flipped the S&P 500 into positive territory for the month and put a dent into the Nasdaq's monthly decline. The Dow padded its already solid advance in May with just four trading days left in the month.
2. Bitcoin stable after Elon Musk said he spoke to miners
Bitcoin was relatively stable above $37,000 on Tuesday after recent wild swings that sent the world's biggest cryptocurrency reeling last week. On Monday, bitcoin approached $40,000 after Tesla CEO Elon Musk tweeted that he spoke to bitcoin miners regarding the environmental impact of their energy-intensive operations.
Microstrategy CEO Michael Saylor followed Musk's tweet, saying he hosted a meeting between the Tesla CEO and some bitcoin miners that led to the formation of the Bitcoin Mining Council, which will promote sustainability. Both Tesla and Microstrategy put some of their corporate cash into bitcoin, which hit an all-time high of almost $65,000 last month.
3. Amazon nears deal to buy MGM Studios for nearly $9 billion
Amazon could announce as soon as Tuesday a deal to acquire MGM Studios, the co-owner of the James Bond franchise and other film and television series, for $8.5 billion to $9 billion, according to people familiar with the matter. Amazon is interested in acquiring more TV and movie content for its Prime Video service as it competes with Netflix, Disney+ and other streaming video services. A deal for MGM would follow last week's announcement that AT&T agreed to break off its WarnerMedia unit and merge it with Discovery.
4. Business groups form coalition to oppose Biden tax hike proposals
More than two dozen groups representing U.S. businesses and employers unveiled a new coalition Tuesday to fight virtually all of the Democrats' plans to raise taxes on self-described job creators. The alliance of 28 industry groups argues that hiking taxes on corporations would hamper the U.S. economy's recovery from the coronavirus pandemic. Organizers told CNBC the new coalition has already started to research its counter-messaging efforts nationally.
5. Police reform still stalled 1 year since George Floyd's death
Tuesday marks one year since George Floyd died after former Minneapolis police officer Derek Chauvin pressed a knee onto the 46-year-old's neck for about nine minutes. While worldwide calls for justice and a reimagining of law enforcement sparked reforms or budget cuts in some cities and states in the last year, Congress has yet to exert its power to change American policing. Bipartisan negotiators have worked for weeks to tweak the House-passed George Floyd Justice in Policing Act to win enough Republican support to get it through the Senate.
— Follow all the market action like a pro on CNBC Pro. Get the latest on the pandemic with CNBC's coronavirus coverage.
Source: Read Full Article
