July 13, 2024

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5 things to know before the stock market opens on Thursday, June 13

5 things to know before the stock market opens on Thursday, June 13
  • The Fed has indicated that the interest rate will be cut only once this year.
  • Broadcom announced a 10-for-1 stock split.
  • Sony Pictures has acquired the Alamo Drafthouse movie theater chain.

Here are five essential things investors need to know to start the trading day:

The Fed held firm, the economic report was cooler than expected, and markets rose for the most part. Investors were optimistic after the Federal Reserve said “modest additional progress” had been made toward its 2% inflation target, despite no change in interest rates. The S&P 500 rose 0.85% on Wednesday to close above 5,400 for the first time. The Nasdaq Composite rose 1.53% and also reached a record high. The Dow Jones Industrial Average was the outlier, down 0.09%. for this day. Follow live market updates

Federal Reserve Chairman Jerome Powell leaves a news conference where he announced that interest rates will remain unchanged at the William McCchesney Martin Federal Reserve Building on June 12, 2024 in Washington, DC.

Kevin Deitch | Getty Images

It was a double day on Wednesday for economic news. The Fed has indicated that it expects to cut interest rates only once before the end of the year. This is fewer than three interest rate cuts indicated by the Federal Open Market Committee in March. The central bank also left the key interest rate unchanged, ranging from 5.25% to 5.5%. Meanwhile, the Consumer Price Index released early Wednesday showed no increase in May, despite rising 3.3% from a year ago. Federal Reserve Chair Jerome Powell noted in a press conference that the CPI report showed progress but added, “We don’t see ourselves as having the confidence to start easing policy at this time.”

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Omar Marquez | Rocket Lite | Getty Images

Broadcom beat earnings estimates for its fiscal second quarter and raised its sales forecast for the year on Wednesday. The chipmaker also announced a 10-for-1 stock split, with trading based on the adjusted split scheduled to begin on July 15. As a result, shares jumped 13% in pre-market trading on Thursday. The company has benefited from the artificial intelligence boom, noting that its sales of $3.1 billion during the quarter can be attributed to revenue from artificial intelligence products.

Interior of the Alamo Drafthouse movie theater.

Alamo Drafthouse

Lights, camera and monitors. For the first time in more than 75 years, a major Hollywood studio will own a movie theater chain. Sony Pictures announced Wednesday that it has acquired the Alamo Drafthouse movie theater chain. Studios were banned from owning movie theater chains from 1948 until 2020, and Sony is the first to invest in a theater company since the restriction was lifted. The Alamo Drafthouse is the seventh largest movie theater chain in North America. It filed for Chapter 11 bankruptcy protection in 2021 after the pandemic and was rescued by a private equity firm.

Keith Gill, also known as Roaring Kitty, will host a live broadcast on YouTube on June 7, 2024.

Source: Roaring Kitty | Youtube

Has the game stopped? The sell-off in GameStop shares intensified in Wednesday afternoon trading. This coincided with a significant spike in trading volume for call options held by stock leader Keith Gill – also known as “Roaring Kitty” and “Deep ——- Value” on social media. It’s unclear whether Gill is behind it, but he last revealed his position on Monday, and some have speculated he may sell early. GameStop calls at the given strike price and expiration traded as high as 93,266 contracts for the day. Many suspect that Gill, who said he does not work with institutional backers, will not have the capital to exercise the options when they expire on June 21. Meanwhile, GameStop’s annual meeting is scheduled for Thursday morning.

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— CNBC’s Lisa Kailai Hahn, Sarah Min, Jeff Cox, Darla Mercado, Kev Leswing, Sarah Whitten and Yun Li contributed to this report.

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