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Stock Market News for Jun 10, 2021

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Benchmarks closed in the negative territory on Wednesday as investors awaited the inflation report due on Thursday. Additionally, the decline in the benchmark 10-year Treasury yield pushed investors away from banking and financial stocks to yield-sensitive assets like technology.

The Dow Jones Industrial Average (DJI) fell 152.68 points, or 0.4%, to close at 34,447.14 and the S&P 500 fell 7.71 points, or 0.2%, to close at 4,219.55. The Nasdaq Composite Index closed at 13,911, shedding 13.16 points, or 0.1%. The fear-gauge CBOE Volatility Index (VIX) increased 4.8%, to close at 17.89. Declining issues outnumbered advancing ones for 1.12-to-1 ratio on the NYSE, while a 1.13-to-1 ratio on the Nasdaq favored decliners.

How Did the Benchmarks Perform?

The Nasdaq closed in the red after touching an intraday high of 14,003.50, and also booked its first loss in four sessions. Its biggest decliner was Sirius XM Holdings Inc. (SIRI - Free Report) , closing 3.4% lower on Wednesday. Big tech firms like Netflix, Inc. (NFLX - Free Report) and Facebook, Inc. (FB - Free Report) also closed in the red, declining at least 1% for the session. Facebook flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Dow booked its third straight day of loss, with biggies like Caterpillar Inc. (CAT - Free Report) , The Boeing Company (BA - Free Report) and American Express Company (AXP - Free Report) closing 2.3%, 1.9% and 1.5% lower, respectively. The S&P 500 retreated from the record, pulling back from an intraday high of 4,237.09. Seven of the 11 major sectors of the broader index closed in the red, with financials and industrials sectors registering more than 1% decline that put the health sector’s 1% gain out of sight.

Overall, the S&P 500 posted 52 new 52-week highs and two new lows, while the Nasdaq Composite recorded 126 new highs and 14 new lows. A total of 11.53 billion shares were traded on Wednesday, higher than the last 20-session average of 10.74 billion.

Markets Struggle to Gain as Investors Wait for Inflation Data

On Wednesday, investors remained vigilant and awaited the reading on inflation to gauge price pressure as the economy rebounds from the pandemic-led recession. The inflation metric, the Consumer Price Index (Core CPI and CPI) is scheduled to be released on June 10. The consensus estimates of core CPI is a 0.5% rise, while CPI could gain 0.4% in May.

However, the decline in the U.S. Treasury yields to its lowest levels since March indicates that investors are wading off inflation fears for the time being. The 10-year Treasury note closed 3.8 basis points lower at 1.489%, its lowest level since Mar 3. The decline in yield weighed on the interest-sensitive financials sector. Shares of Wells Fargo & Company (WFC - Free Report) closed 1.5% lower, while JPMorgan Chase & Co. (JPM - Free Report) and Bank of America Corporation (BAC - Free Report) shed 1.3% on Wednesday.

The meme stocks rally continued on Wednesday, as traders picked up Clean Energy Fuels Corp. (CLNE - Free Report) , pushing the stock 31.5% higher, while Clover Health Investments, Corp. (CLOV - Free Report) that topped charts on Tuesday fell 23.6% yesterday.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 3 crypto-related stocks now >>