5 things to know before the stock market opens on Tuesday, June 7

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

1. Wall Street will open lower as bond yields remain high

Traders work on the floor of the New York Stock Exchange, June 6, 2022.

Source: NYSE

US Stock Futures fell on Tuesday, with bond yields elevated spoiling again. Sentiment was also affected by the actions of Goal falling more than 8% premarket on a profit warning.

  • the Dow Jones Industrial Average gave up nearly all of Monday’s closing 300+ point gain as a benchmark 10-year Treasury yield exceeded 3%, reaching its highest level in almost a month.
  • the S&P 500 and the nasdaq they were able to retain more of their Monday gains than the Dow, finishing 0.3% and 0.4% higher, respectively.
  • Despite strong gains in the week leading up to Memorial Day, last week’s losses kept the Dow and S&P 500 firmly in corrections and the Nasdaq in a bear market, based on declines from their previous all-time highs.

2. Target shares plunge after retailer warns of earnings

A person walks into a Target store in Washington, DC, on May 18, 2022.

Stefani Reynolds | AFP | fake images

target warned On Tuesday, profits will take a short-term hit as the retailer markdowns unwanted items, cancels orders and takes aggressive steps to get rid of extra inventory. Target anticipates its operating margin rate for the fiscal second quarter to be around 2%. That’s lower than the outlook it gave less than three weeks ago when it reported a broader fiscal first-quarter earnings loss, sending shares down about 25% in its worst single-day performance on Wall Street since 1987.

3. Kohl’s jumps after starting sales talks with the owner of the Vitamin Shoppe

The Kohl’s logo is displayed outside a Kohl’s store on January 24, 2022 in San Rafael, California.

justin sullivan | fake images

Kohl’s shares rose nearly 10% in premarket Tuesday, the morning after the department store chain said it entered into exclusive sale negotiations with the retail holding company behind The Vitamin Shoppe and Pet Supplies Plus. franchise group He is proposing to buy Kohl’s for $60 a share, a premium of more than 40% as of Monday’s close. franchise group is working with Oak Street Real Estate Capital to finance the deal primarily through real estate, according to a person familiar with the matter.

4. Yellen will kick off two days of testimony on Capitol Hill on inflation.

US Treasury Secretary Janet Yellen delivers the “Tommaso Padoa Schioppa” lecture at the Brussels Economic Forum in Brussels, Belgium, Tuesday, May 17, 2022.

Valeria Mongelli | Mayor Bloomberg | fake images

Ahead of Friday’s reading on May consumer prices, inflation takes center stage on Capitol Hill this week as Treasury Secretary Janet Yellen testifies before a Senate panel on Tuesday and a House panel on Wednesday. Yellen, former chair of the Federal Reserve, face tough questions about how the Biden administration has handled the economy after it was wrong about inflation being transitory. Forty-year high inflation has pushed the national average for a gallon of gasoline to another record, just 8 cents short of $5, according to AAA.

5. Senators introduce a bipartisan bill to regulate cryptocurrencies

United States Capitol Building in Washington, DC

Liu Jie | Xinhua News Agency | fake images

sens. kirsten gillibrandDN.Y., and Cynthia Lummis, R-Wyo., on Tuesday sleepless a bipartisan bill to create a regulatory framework around cryptocurrencies. The Lummis-Gillibrand bill, the product of months of collaboration on Capitol Hill, amounts to classifying the vast majority of digital assets as commodities. The Responsible Financial Innovation Act would empower the Commodity Futures Trading Commission to regulate most existing digital assets. Both Lummis and Gillibrand want to work towards turning their respective states into blockchain and crypto havens.

-CNBC tanaya macheel, Melissa Repko, lauren thomas Y Thomas Frank as well as Reuters contributed to this report.

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