Coffee With Greta: Slide Continues
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DJIA Futures: -64 (-0.2%)
SPX Futures: -7 (-0.2%)
NASDAQ Futures: -32 (-0.2%)
Good morning friends!
Futures are slipping for the fourth straight day as the market rally continues to stall.
Let’s get right to it!
Powell Testimony Day 2
Fed Chair Jerome Powell will testify in the Senate Banking Committee today for day two of his Semi-Annual Monetary Report to Congress.
During his testimony in the House Financial Services Committee on Wednesday, Powell reaffirmed the Fed’s plans to hike interest rates further this year.
He said, “We have been seeing the effects of our policy tightening on demand in the most interest rate-sensitive sectors of the economy. It will take time, however, for the full effects of monetary restraint to be realized, especially on inflation.”
He emphasized that future rate decisions will remain data dependent.
Bank Of England Hikes Rates
The Bank of England approved another 50 basis point rate hike overnight, its 13th straight increase.
The bank’s Monetary Policy Committee voted 7-2 in favor of the move, bringing the base rate to 5%.
The decision came after new data on Wednesday showed the U.K. annual CPI rate at 8.7% in May, unchanged from April.
Core CPI increased to 7.1% annually in May vs 6.8% in April, the highest since March 1992.
Weekly Jobless Claims Jump
Weekly jobless claims rose unexpectedly last week to the highest level since late 2021.
The Labor Department reported 264,000 Americans filed initial claims for unemployment benefits.
That was up by 2,000 from the previous week and higher than expectations for claims to fall to 256,000.
Continuing claims fell to 1.76 million in the week ending June 10 vs expectations for 1.78 million.
Overstock.com Wins BBBY Auction
Overstock.com (OSTK) shares are rallying 8.1% ahead of the open after winning the auction for Bed Bath & Beyond’s intellectual property and digital assets.
Court records filed early this morning show Overstock.com will buy the brand name, business data, and digital assets for $21.5 million.
The deal does not keep Bed Bath & Beyond stores open and still needs to be approved at a hearing on Tuesday.
Bed Bath & Beyond is running a separate sale process for its Buy Buy Baby chain, hoping to find a bidder willing to keep those stores open.
That auction is scheduled for next Wednesday.