U.S. stock futures were flat Tuesday after a hotter government report on wholesale prices, which could stoke inflation fears. Following last week’s spike in consumer prices, investors will be awaiting signals from the Federal Reserve on its inflation tolerance when the two-day June meeting of central bank policymakers ends Wednesday.
CNBC’s latest Fed survey of economists, fund managers and Wall Street strategists shows that they believe the tapering of the Fed’s massive Covid-era bond buying won’t start until January and the first interest rate hike from near zero levels won’t happen until November 2022.
Against that back drop, the Nasdaq started the week with a gain that pushed the tech-heavy index above its late-April record close. The S&P 500 notched a slight gain and another record close. The Dow broke a two-day winning streak. The 30-stock average was 1.1% away from its most recent record close in early May.
The 10-year Treasury yield ticked higher Tuesday, trading around 1.5%, after the Labor Department’s May produce price index and the Commerce Department’s May read on retail sales. Headline PPI rose a hot 6.6% year over year, the largest 12-month increase on record. May retail sales dropped a greater-than-expected 1.3%. Those data points, and Wednesday morning’s May housing starts, will be the last reports for central bankers to consider before releasing their policy statement Wednesday afternoon, followed by Fed Chairman Jerome Powell‘s news conference.
US President Joe Biden (L) and France’s President Emmanuel Macron (C) talk with President of the European Commission Ursula von der Leyen after the family photo at the start of the G7 summit in Carbis Bay, Cornwall on June 11, 2021.
PATRICK SEMANSKY | AFP | Getty Images
The EU and the United States have resolved a 17-year dispute concerning government subsidies for their respective aircraft makers Boeing and Airbus. The two sides agreed to suspend for five years trade tariffs that stem from the dispute. “This really opens a new chapter in our relationship because we move from litigation to cooperation on aircraft — after 17 years of dispute,” European Commission President Ursula von der Leyen said. CNBC reported last week that the EU was pressing the Biden White House to reach a deal to end reciprocal tariffs over the issue, which were imposed during the administration of former President Donald Trump.
This combination of files pictures created on June 7, 2021 shows then Democratic presidential candidate Joe Biden speaking about reopening the country during a speech in Darby, Pennsylvania, on June 17, 2020 and Russian President Vladimir Putin delivering a speech during a meeting with Russian athletes and team members, who will take part in the upcoming 2018 Pyeongchang Winter Olympic Games, at the Novo-Ogaryovo state residence outside Moscow on January 31, 2018.
Jim Watson | AFP | Getty Images
President Joe Biden, who’s been meeting this week with European allies at a G-7 summit in the U.K. and a NATO summit in Belgium, is set to meet Wednesday in Geneva with Russian President Vladimir Putin. It will be the third time Geneva has hosted U.S. and Russian leaders for talks. The first, in 1955, involved President Dwight D. Eisenhower and Soviet leader Nikita Khrushchev. Thirty years later, President Ronald Reagan and Soviet counterpart Mikhail Gorbachev met there. Both of those meetings made progress toward defusing tensions. This time, there are hopes the Biden-Putin meeting can produce a modest improvement on the current U.S.-Russia chill over issues like Ukraine, human rights and cyberattacks.
A woman and child look at the “Naming the Lost Memorials,” as the U.S. deaths from the coronavirus disease (COVID-19) are expected to surpass 600,000, at The Green-Wood Cemetery in Brooklyn, New York, U.S., June 10, 2021.
Brendan McDermid | Reuters
As daily new Covid cases and deaths in the U.S. drop dramatically along with high vaccination rates, the nation was on the verge of recording a total of 600,000 fatalities from the disease. That’s the most Covid deaths of any country, according to data compiled by Johns Hopkins University. At nearly 33.5 million cases, the U.S. also has the highest total infections in the world. However, with surges in Brazil and India, those countries follow the U.S. in total deaths, with more than 488,200 in Brazil and about 377,000 in India. On cumulative infections, it flips: India was No. 2 with nearly 29.6 million and Brazil was No. 3 with about 17.5 million.