5 things to know before the stock market opens on Tuesday, June 21

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

1. Wall Street prepares to rebound after worst S&P 500 hunt since 2020

The Wall Street sign is seen with American flags outside the New York Stock Exchange.

Yuki Iwamura | Afp | fake images

dow futures it jumped 400 points, or 1.4%, on Tuesday after a terrible selling week. S&P 500 and Nasdaq futures bounced around 1.5% to start the holiday-shortened week. the 10-year Treasury yield on Tuesday stayed off 2011 highs, almost 3.28%, a level that is helping ease pressure on stocks. After last week’s major Federal Reserve interest rate hike since 1994 to fight inflation, Fed chairman Jerome Powell it is scheduled to deliver its semi-annual monetary policy report to Congress on Wednesday and Thursday.

  • the S&P 500The weekly decline of 5.8% was its worst since March 2020the month the Covid pandemic was declared, as investors were worried about a recession.
  • the dow closed below 30,000 again on Friday and lost 4.8% last week. That’s the weakest weekly performance for the 30-stock average since October 2020.
  • No superlatives for underachievers nasdaqWeekly loss of 4.8%.
  • All three stock benchmarks fell for three consecutive weeks. The S&P 500 and the Nasdaq posted weekly losses in 10 of the last 11 sessions, both in bear markets. The negative week for the Dow Jones was the 11th of the last 12, in a strong correction.

2. US oil prices recoup some of last week’s sharp declines

West Texas Intermediate Crude, the benchmark US oil index, rose 2% on Tuesday to about $110 per barrel, sparking a strong pre-market rally in energy stocks. However, WTI sank more than 9% last week, snapping a seven-week winning streak and closing 15% below its level on Friday. 13 year old highs in early March $130.50. Swinging supply and demand concerns due to geopolitical factors, including Russia’s war in Ukraine and China’s ongoing Covid mitigation lockdowns and restrictions, have kept oil and gasoline elevated.

  • But as of Tuesday, the national average of a gallon of gasoline dipped below $5 again. Still, it’s still very high, and President Joe Biden said Monday that he is seriously considering a temporary suspension of the federal gas tax before July 4.

3. Kellogg plans to split up; JetBlue raises its Spirit offer

Kellogg’s announced plans Tuesday to split into three separate companies. The food giant will spin off its grain business and plant-based division in North America, units that accounted for about 20% of its revenue last year. The third standalone company will be the remaining businesses, including its North American snack, noodle, international cereal and frozen breakfast brands, which accounted for about 80% of its 2021 sales. CEO Steve Cahillane told CNBC on Tuesday that it is likely to Kellogg’s name is kept in some way. Kellogg’s shares rose 6% premarket after the announcement.

Actions of spiritual airlines jumped 9% in Tuesday’s premarket but held below jet blueThe takeover offer sweetened to $33.50 per share on Monday. Spirit said last week that it was in talks with JetBlue about its offer and expected to decide on the proposal by June 30. JetBlue said its proposal represents a 68% premium over the implied value of a competing stock-and-cash offer from parent Border Airlines.

4. Musk Says 3 Problems Need To Be Solved To Advance Twitter Buyout

Elon Musk said there is three main obstacles overcome before it can complete its $44 billion purchase of Twitter. In a Bloomberg interview on Tuesday, the CEO of Tesla and SpaceX said there were a number of “unresolved issues” that will need to be resolved before it can go ahead with the acquisition: fake accounts, debt financing and Twitter shareholder approval. The fate of the deal has become more uncertain in recent weeks after Musk threatened to back out over questions about Twitter’s revelations about the number of spam accounts on the platform.

5. Bitcoin surges after sinking below $18,000 over the weekend

Bitcoin rose more than 5% on Tuesday, again above $21,000 after wild long weekend. The world’s largest cryptocurrency, fell to a low of around $17,600 on Saturday, dipping below the key $20,000 level for the first time since December 2020. At its lowest point on Saturday, bitcoin was roughly 74% down. down from its all-time high of over $68,000 in November, which was the month of the Nasdaq’s last all-time high. Bitcoin has been trading alongside the tech index, shooting down the argument for cryptocurrencies as a hedge against inflation like gold.

-CNBC yun li, Peter Schacknow, samantha subin, jesse pound, amelia lucas Y Ryan Browne as well as NBC News and Reuters contributed to this report.

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