Here are the top news, trends, and analysis investors need to start their trading day:
1. The AMC mania fascinates Wall Street, a company that sells more stocks
Trader on the New York Stock Exchange, June 2, 2021.
US stock futures fell Thursday after another sluggish day in the broader market disproved AMC Entertainment’s incredible trading in meme stocks. In pre-market trading, AMC initially rose 20% before waging back and forth between much smaller gains and losses after the cinema chain “from time to time” sold 11.55 million shares. AMC stock shot up 95% on Wednesday, bringing its year-to-date gains to more than 2,800%.
The Dow Jones Industrial Average, S&P 500 and Nasdaq on Wednesday focused on the link between inflationary pressures and the reopening of U.S. stores after Covid. The Dow and S&P 500 were within 1% of their record closing times in May, while the Nasdaq was 2.7% off its record high in late April. However, on Thursday the Dow futures fell about 200 points, or 0.6%. S&P futures saw similar declines. Nasdaq futures fell 1%.
2. AMC stock short sellers lost $ 2.8 billion in one day
Movie posters with current offers will be displayed on the front of an AMC movie theater on June 01, 2021 in Chicago, Illinois. Mudrick Capital has agreed to buy 8.5 million shares in the theater chain for $ 230.5 million.
Scott Olson | Getty Images
The retail war fueled by Reddit against those betting against AMC, similar to the GameStop mania in January, cost short sellers $ 2.8 billion on Wednesday alone, according to S3 Partners. Approximately 18% of AMC stock available for trading had been sold short as of Wednesday. Most Wall Street analysts still believe that AMC stock will fall at some point. According to the FactSet, the average 12-month price target was USD 5.11. AMC closed 2020 at $ 2.12 per share.
3. Bond yields inches higher after two job reports
A job vacancy sign is seen outside of a Starbucks in Manhattan, New York City, New York, the United States, May 26, 2021.
Andrew Kelly | Reuters
4. Largest meat producer goes online again after cyber attack
JBS meat processing facility will be visited on June 2, 2021 in Plainwell, Michigan.
Jeff Kowalsky | AFP | Getty Images
Brazil’s JBS, the world’s largest meat processor, resumed most of its production after a cyber attack over the weekend. However, experts warned that the vulnerabilities revealed by these and other security breaches are far from being fixed. JBS accuses hackers with ties to Russia. Last month, Colonial Pipeline, the largest U.S. fuel pipeline, paid ransomware requests after its operations closed for almost a week. Hackers with ties to Russia are also suspected in this attack. According to media reports on Wednesday, the New York City Metropolitan Transportation Authority admitted a cyber attack with alleged links to China in late April.
5. The activist company Engine No. 1 claims the third seat on the Exxon board of directors
A view of the Exxon Mobil Refinery in Baytown, Texas.
Jessica Rinaldi | Reuters
Engine No. 1 has won a third Exxon board seat. The aspiring activist firm has been targeting the oil giant since December, urging the company to shift its focus away from fossil fuels. Engine No. 1, which owns a tiny 0.02% stake in Exxon, nominated four directors ahead of the firms ‘annual shareholders’ meeting in late May, a move supported by large state pension funds. Last week’s vote followed months of back and forth between Engine No. 1 and Exxon.
– The Associated Press contributed to this report. Follow all market activity like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.