What to watch today: Dow futures rise despite hotter inflation data

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BY THE NUMBERS

Dow futures rose Thursday despite a hotter-than-expected report on consumer inflation. The Dow logged its third straight session of losses Wednesday. In a rather muted June, the 30-stock average was still less than 1% from last month’s record close. The S&P 500, which also dipped Wednesday, remained 0.3% shy of its May record high close. The Nasdaq broke a three-session winning streak, but Wednesday’s modest decline still kept the tech-heavy index within 1.6% from its late April record close. (CNBC)

* For CNBC Pro subscribers: Today’s biggest analyst calls on Zoom, Delta, UPS, Wingstop

The 10-year Treasury yield ticked higher Thursday, trading around 1.5%, after the government released its red-hot May consumer price index. Headline CPI rose a greater-than-expected 5% on a year-over-year basis, the highest rate since sky-high energy prices spiked inflation readings in August 2008. The Federal Reserve, which has said it believes hotter inflation will be transitory, meets next week. The government also reported a new pandemic-era low of 376,000 initial jobless claims for last week. (CNBC)

Oil prices rose Thursday a day after slipping on data indicating weak U.S. driving season fuel demand as investors eyed upcoming U.S. economic data. U.S. West Texas Intermediate oil futures rose to over $70 per barrel, staying near its highest since Oct. 2018. (Reuters)

Homeowners with mortgages saw their equity jump by 20% in the first quarter from a year earlier. This represents a collective cash gain of close to $2 trillion. Per borrower, the average gain was $33,400. Record-low mortgage rates for much of last year only added to the buying frenzy and helped fuel the price gains. (CNBC)

IN THE NEWS TODAY

Shares of GameStop (GME) dropped roughly 6% in the premarket, the morning after the video game retailer named former Amazon executive Matt Furlong as its new CEO. GameStop also named another former Amazon executive, Mike Recupero, as CFO. (CNBC)

GameStop is attempting to shift from a largely brick-and-mortar business to more of an online operation. Chewy co-founder Ryan Cohen, who took a stake in GameStop last year and pushed the new strategy, became chairman. GameStop sales rose 25% in the fiscal first quarter on a smaller-than-expected per-share loss. Shares of the original Reddit-favored meme stock have soared 1,500% in 2021. (CNBC)

Clover Health (CLOV), Wendy’s (WEN), WWE (WWE), and Clean Energy Fuels (CLNE) are among the newest meme stocks. Insurance provider Clover rose 1.8% in the premarket after a 23.6% drop Wednesday. Wendy’s gained 1.8% after closing down 12.7%. WWE rose 2.4% premarket after an 11% jump. Clean Energy Fuels rallied 5.6% in premarket trading after a 31.5% surge Wednesday. (CNBC)

* Virtu CEO says meme stock frenzy not solely driven by a ‘band of retail traders’ (CNBC)

Brazil’s JBS, the world’s largest beef supplier, ended up paying the ransomware group that breached its computer networks about $11 million. The company was hacked in May by REvil, one of a number of Russian-speaking gangs, leading to plant closures. (NBC News)

Goldman Sachs (GS) is making its U.S. employees report whether they’ve taken one of the Covid-19 vaccines, according to an internal memo sent this week. Employees must inform the New York-based bank by noon Thursday on their status, according to the memo. (CNBC)

President Joe Biden, meeting with leaders of the wealthy G-7 democracies on his first overseas trip since taking office, is expected to unveil plans Thursday for the U.S. to donate 500 million additional vaccine doses around the globe over the next year. The president will also include a direct request to his fellow G-7 leaders to do the same. (AP)

While Covid eases in the U.S., the pandemic has reached new levels of devastation in many countries. India reported on Thursday a daily record of more than 6,000 deaths from the disease. (CNBC)

Moderna (MRNA) said it’s asked the FDA to expand the emergency use authorization of its Covid vaccine in adolescents ages 12 to 17. Pfizer (PFE) and German partner BioNTech (BNTX) were cleared last month to use their vaccine for 12-to-15-year-olds. (CNBC)

Keystone XL was halted by owner TC Energy after President Joe Biden this year revoked a key permit needed for a U.S. stretch of the 1,200-mile project. The pipeline, delayed for the past 12 years due to opposition from various groups, was expected to carry 830,000 barrels per day of Alberta oil sands crude to Nebraska. (Reuters)

A small group of workers will find something new in their 401(k) plan starting in July: The option to invest in crypto. ForUsAll Inc., a 401(k) provider, announced earlier this month a deal with the institutional arm of Coinbase Global. (WSJ)

* Bitcoin rallies after El Salvador passes law to adopt it as legal tender (CNBC)
* China arrests over 1,100 in crackdown on crypto-related money laundering (CNBC)

STOCK TO WATCH

RH (RH) surged 8.4% in premarket trading after it reported quarterly profit of $4.89 per share, above the $4.10 a share consensus estimate. The home furnishings retailer formerly-known as Restoration Hardware also reported better-than-expected revenue and raised its full-year outlook.

Signet Jewelers (SIG) surged 6.3% in premarket trading after it trounced a $1.27 consensus estimate with quarterly earnings of $2.23 per share. The jewelry retailer’s revenue also beat estimates as same-store sales more than doubled from a year earlier. Signet raised its full-year revenue forecast as well.

United Airlines (UAL) is reportedly in advanced talks to buy a substantial number of large narrow-body jets that would include at least 100 Boeing (BA) 737 Max jets. People familiar with the matter told Bloomberg the talks are part of a broader fleet revamp at United. Boeing shares added 1% in premarket trading.

Tesla (TSLA) plans to launch its new Model S Plaid today at its Fremont, California, plant, with the event set for 10 p.m. ET. The high-end version of the Model S will cost just under $120,000 and has a projected driving range of 390 miles.

Roblox (RBLX) faces a copyright infringement lawsuit from a group of music publishers. The video game platform company is accused of letting developers insert music players into games that play copyrighted music without permission or payment.

Verint Systems (VRNT) reported quarterly profit of 44 cents per share, beating the 35 cents a share consensus estimate. The customer relationship software company’s revenue also came in above analysts’ forecasts and Verint raised its full-year guidance.

WATERCOOLER

Seven is a magical number for one of Bel-Air’s priciest spec homes. The glass and marble palace located at 777 Sarbonne Road in Los Angeles hit the market last month with an asking price of $87,777,777. The triple sevens in its address and price tag are just the beginning. (CNBC)