Here are five things you must know for Wednesday, June 30:
1. — Stock Futures Fall After S&P 500’s Record Close
Stock futures fell Wednesday following another record close for the S&P 500.
Contracts linked to the Dow Jones Industrial Average declined 96 points, S&P 500 futures were down 8 points and Nasdaq futures dropped 26 points.
The S&P 500 rose just 0.03% on Tuesday but still managed to close at another record high. The broad-market index is on pace to finish June with gains, which would mark its fifth straight monthly advance. The tech-heavy Nasdaq also finished Tuesday at an all-time closing record.
A report on U.S. consumer confidence for June rose to the highest level since the pandemic began last year. It was the fifth straight monthly gain for the measure, with consumers’ short-term optimism rebounding “buoyed by expectations that business conditions and their own financial prospects will continue improving in the months ahead,” said Lynn Franco, senior director of economic indicators at the Conference Board.
Confidence in the economy’s rebound came as concerns remain that the Federal Reserve could pull back on support if inflation runs too hot and that outbreaks of the highly contagious delta variant of the coronavirus could stall a global recovery.
For now, however, stocks have rallied on prospects for a strong bounce-back and the belief that the Fed will keep interest rates low for a while longer.
The yield on the benchmark 10-year Treasury note dipped early Wednesday to 1.465%.
2. — Wednesday’s Economic Calendar: ADP National Employment Report
The economic calendar in the U.S. Wednesday includes the ADP National Employment Report for June at 8:15 a.m. ET, Chicago PMI for June at 9:45 a.m., Pending Home Sales for May at 10 a.m. and Oil Inventories for the week ended June 25 at 10:30 a.m.
The ADP report will serve as a precursor to the release Friday of the official U.S. jobs report for June. Economists surveyed by FactSet expect the ADP report to say that private payrolls rose by 550,000 during the month, below May’s surge of 978,000, which was the fastest pace in nearly a year.
3. — Micron and Bed Bath & Beyond to Report Earnings
Earnings reports are expected Wednesday from Micron Technology (MU) – Get Report, Bed Bath & Beyond (BBBY) – Get Report, General Mills (GIS) – Get Report and Constellation Brands (STZ) – Get Report.
TheStreet’s Jim Cramer said earlier this week he’ll be keeping a close eye on Micron’s earnings.
“I think Micron is the most important one because the semiconductors are really hanging by a thread,” he said.
4. — Didi Raises $4.4 Billion in Initial Public Offering
The initial public offering of Didi Global was priced at $14 per ADS Tuesday evening, raising about $4.4 billion for the Chinese ride-hailing giant.
The IPO gives the company a valuation of about $67 billion. Didi sold 317 million American depositary shares in the offering vs. the originally planned 288 million.
At $4.4 billion, Didi would be the second-largest U.S. listing by a Chinese company on record, after Alibaba’s (BABA) – Get Report $25 billion debut in 2014, according to data
compiled by Bloomberg.
TheStreet’s Jim Cramer recently said Didi could offer speculators a good opportunity.
Didi shares will begin trading Wednesday on the New York Stock Exchange under the symbol “DIDI.”
5. — These Stocks Are Worth Owning, Cramer Says
TheStreet’s Jim Cramer suggested investors just starting out should put their first $10,000 in an index fund. But after that, Cramer told his “Mad Money” viewers Tuesday night, there are better ways to make money.
The problem with owning everything, according to Cramer, is that not every stock is worth owning. So what’s worth owning today? There are dozens of high-paying dividend stocks in the S&P 500 such as Merck (MRK) – Get Report. Cramer also identified stocks over the years such as Facebook (FB) – Get Report, Paychex (PAYX) – Get Report, Shopify (SHOP) – Get Report and Nvidia (NVDA) – Get Report on “Mad Money.”
Cramer’s Mad Money Recap: Facebook, Merck, Nvidia
All of these stocks have seen huge gains and all of them were hiding in plain sight. With a little time and research, investors can find winners just like these, Cramer explained.
Facebook and Nvidia are holdings in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.