Here are the top news, trends, and analysis that investors need to get their trading day started:
1. The S&P 500 drops off after moving towards a record
The Wall Street sign can be seen near the New York Stock Exchange (NYSE) in New York City on May 4, 2021.
Brendan McDermid | Reuters
2. Three reports to get more insight into the economic recovery
The government is expected to release three key economic reports an hour before the opening bell on Wall Street at 8:30 a.m. ET.
- Economists predict initial jobless claims will drop to 425,000 for last week, another low in the pandemic compared to 444,000 new claims for unemployment benefit the previous week.
- The second estimate of the gross domestic product in the first quarter is expected to be revised slightly higher to an annual growth rate of 6.6%.
- Durable goods orders are forecast to grow 0.9% in April, following a 1% increase in March.
3. The meme stock rally will pause after a month of comeback profits
SELINSGROVE, PENNSYLVANIA, UNITED STATES – 2021/01/27: A woman walks past the GameStop store in the Susquehanna Valley Mall. An online group sent GameStop (GME) and AMC Entertainment Holdings Inc. (AMC) share prices soaring to squeeze short sellers.
Photo by Paul Weaver / SOPA Images / LightRocket via Getty Images
This week’s meme stock rally should pause on Thursday. GameStop and AMC Entertainment, both popular with Reddit fans, were under pressure in the pre-market. However, GameStop rose nearly 16% on Wednesday alone and nearly 44% last month. AMC rose 19% on Wednesday and 70% last month. So far, GameStop surged nearly 1,200% in 2021 after epic short squeeze rallies in January. AMC has gained 822% since the beginning of the year. Strategists attribute the recent surge in these stocks to overselling.
4. Round 2 for bank managers after fireworks at the hearing on Wednesday
Jamie Dimon, chairman of the board of directors of JPMorgan Chase & Co., speaks virtually on a laptop during a Senate Committee hearing on Banking, Housing and Urban Affairs held in Tiskilwa, Illinois, USA on Tuesday, May 25, 2021.
Daniel Acker | Bloomberg | Getty Images
The CEOs of the big banks are facing a second round of barbecue by the legislature on Thursday, as they testify before the House Financial Services Committee. There were fireworks at Wednesday’s Senate Banking Committee hearing as progressive Senator Elizabeth Warren chased JPMorgan Chase’s Jamie Dimon. The Massachusetts Democrat called Dimon about the bank’s nearly $ 1.5 billion overdraft fees last year when borrowers struggled during Covid lockdowns. According to Dimon, JPMorgan waived overdraft fees for customers asking for relief. When asked if the bank would reimburse the fees to those who didn’t, Dimon said, “No.”
5. Biden orders a closer look at the origin of Covid, including a possible leak in the Wuhan lab
During the visit of the World Health Organization (WHO) team tasked with investigating the causes of coronavirus disease (COVID-19) in Wuhan, Hubei Province, China, on February 3, 2021, security guards will be on guard in front of the Wuhan Institute of Virology.
Thomas Peter | Reuters
President Joe Biden has ordered a closer scrutiny of the intelligence services, which he said are two equally plausible scenarios for the development of the coronavirus. Biden announced that earlier this year he asked the secret services to assess “whether it was human contact with an infected animal or a laboratory accident.” The hypothesis that the virus may have escaped a Chinese laboratory has grown in importance in recent months. CDC director Dr. Rochelle Walensky said in a Senate testimony last week that a lab leak origin was “a possibility”. China has rejected the laboratory theory.
– Reuters contributed to this report. Follow all market action like a pro on CNBC Pro. Get the latest information on the pandemic with CNBC’s coronavirus coverage.
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