Here are the most important news, trends and analysis investors need to start their trading day:
1. Dow recovers some of the losses from Thursday’s liquidation
Traders on the floor of the New York Stock Exchange.
Dow futures rebounded more than 200 points on Friday, a day after a large sell-off on Wall Street. The Dow Jones lost 259 points, or 0.75%, on Thursday, ending around 1% of last Friday’s record close. The 30-stock average was down 536 points during Thursday’s session. The S&P 500 and Nasdaq also ended their lows for the day, retreating from Wednesday’s record close. All three stock indexes, at Thursday’s close, were on track to end lower for the week. Concerns about slowing economic growth, due to the spread of the delta variant of Covid, dampened sentiment on Thursday, with investors buying bonds for their perceived safety and driving yields lower.
2. The 10-year Treasury yield bounces off February lows
Bond yields, which move in the opposite direction to prices, rose on Friday. The 10-year Treasury yield is back above 1.34% after dropping to 1.25% on Thursday to levels not seen since February. The 10-year yield hit a 14-month high of 1.78% in March. It started 2021 at less than 1%. Treasury yields have generally declined over the past week, with declines accelerating Thursday amid concerns over delta variants and an unexpected rise in first jobless claims for the past week, up from lows from the Covid era of the previous week.
3. Biden to sign executive order cracking down on Big Tech
US President Joe Biden speaks about the situation in Afghanistan from the East Room of the White House in Washington, DC on July 8, 2021.
Saul Loeb | AFP | Getty Images
The White House is expected to announce a new executive order on Friday aimed at cracking down on anti-competitive practices in big tech, labor and many other industries. The comprehensive decree, which includes 72 actions and recommendations involving a dozen federal agencies, aims to rethink thinking about corporate consolidation and antitrust laws, CNBC’s Ylan Mui reported. “The impetus for this executive order is really where can we encourage more competition at all levels,” White House chief economic adviser Brian Deese told Mui in an exclusive interview.
4. Pfizer is developing a Covid booster to target the delta variant
New Yorkers 12 and older get vaccinated at St. Anthony of Padua Roman Catholic Church in the Bronx in New York, United States on June 13, 2021.
Tayfun Coskun | Anadolu Agency | Getty Images
Pfizer and BioNTech are developing a Covid booster injection intended to target the delta variant, already the dominant form of the disease in the United States. While they believe that a third injection of their current two-dose vaccine may preserve the “highest levels” of protection against any currently known variants, the companies “remain vigilant” and are working on an updated version of the vaccine. . Thursday’s announcement came the same day organizers of the Olympics announced they were banning all fans of the games this year after Japan declared a state of emergency for Tokyo to curb a wave of news. Covid infections.
5. Wells Fargo advises customers that it is closing all personal lines of credit
A man walks past a Wells Fargo Bank branch on a rainy Washington morning.
Gary Cameron | Reuters
Wells Fargo plans to end a popular consumer loan product, angering some of its customers. The bank is closing all existing personal lines of credit in the coming weeks and is no longer offering the product, according to customer letters reviewed by CNBC. Revolving lines of credit, which typically allow users to borrow from $ 3,000 to $ 100,000, have been touted as a way to consolidate higher-interest credit card debt, pay for home renovations, or home renovations. avoid overdraft fees on linked current accounts. Wells Fargo is still recovering from the aftermath of its fake accounts scandal in 2016.
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