news

5 Things to Know Before the Stock Market Opens Tuesday

NYSE
  • Apple unveils its Vision Pro headset.
  • The SEC charges Binance.
  • A destroyed dam unleashes a massive flood in Ukraine.

Here are the most important news items that investors need to start their trading day:

1. Back in neutral

U.S. equities markets took a step back Monday, posting slight losses after a big rally Friday. Two big things were on investors' minds: Apple's announcement about its new mixed-reality headset (more on that below) and the possibility that regulators might boost capital requirements for big banks. The latter weighed on stocks from JPMorgan Chase to Goldman Sachs, but hit the SPDR S&P Bank ETF harder. Meanwhile, Treasury yields declined as investors weigh the possibility of avoiding a recession. Follow live market updates.

2. Apple's new reality

Source: Apple

Apple shares ended Monday slightly down after the tech giant unveiled its $3,499 Vision Pro mixed-reality headset. But that doesn't mean the gadget – which represents Apple's first major new product line since 2014 – didn't impress. It certainly turned some heads in the industry. It also triggered a big jump in shares of game development platform Unity Software, as Apple announced it would be among the partners for the Vision Pro. Yet as Meta has shown, reality-tweaking headsets have been a tough sell, particularly at elevated price points. Apple, though, looks like it's in this for the long haul as it again seeks to reshape the computing experience.

3. SEC vs CZ

Binance's Co-founder & CEO Changpeng Zhao has given several interviews discussing the outlook for cryptocurrency following a turbulent couple of weeks in the market.
NurPhoto / Contributor / Getty Images
Binance's Co-founder & CEO Changpeng Zhao has given several interviews discussing the outlook for cryptocurrency following a turbulent couple of weeks in the market.

The Securities and Exchange Commission on Monday accused Binance and CEO Changpeng Zhao of several violations after months of heightened regulatory scrutiny on the world's largest crypto exchange in the wake of FTX's collapse. "Through thirteen charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law," Gary Gensler, the SEC's chair, said in a news release. Binance expressed disappointment about the complaint, saying it had "actively cooperated with the SEC's investigations." Zhao, also known as CZ, dismissed the accusations, as well. The SEC case isn't Binance's only legal challenge. The Commodity Futures Trading Commission sued the company in March, and the Justice Department is also investigating it.

4. GM's pickup pick-me-up

Line workers work on the chassis of full-size General Motors pickup trucks at the Flint Assembly plant on June 12, 2019 in Flint, Michigan.
JEFF KOWALSKY / AFP / Getty Images
Line workers work on the chassis of full-size General Motors pickup trucks at the Flint Assembly plant on June 12, 2019 in Flint, Michigan.

Even though General Motors and its main rivals are pushing toward an all-electric future, they're still heavily reliant on good ol' fashioned pickup trucks powered by gas and diesel. The company underlined that fact Monday, when it announced it would invest $1 billion to manufacture new heavy-duty pickups. GM is counting on its highly profitable pickups to carry it financially into an era where it can turn profits on electric vehicles. The investment also comes ahead of potentially contentious contract negotiations with the United Auto Workers union, which is seeking better compensation for workers as they navigate the transition to EVs.

5. Dam destroyed in Ukraine

A screen grab captured from footage posted on Ukraine President Zelenskyy's social media account shows the Kakhovka Hydroelectric Power Plant after a blast occurred in plant which is in the Russian-controlled part of Ukraine's Kherson on June 6, 2023.
Anadolu Agency | Anadolu Agency | Getty Images
A screen grab captured from footage posted on Ukraine President Zelenskyy's social media account shows the Kakhovka Hydroelectric Power Plant after a blast occurred in plant which is in the Russian-controlled part of Ukraine's Kherson on June 6, 2023.

A dam in a Russian-occupied area of southern Ukraine was destroyed early Tuesday, unleashing a torrent of water that triggered emergency evacuations. Ukraine's government blamed Russian forces for the catastrophe. "Russian terrorists," tweeted Ukrainian President Volodymyr Zelenskyy. "The destruction of the Kakhovka hydroelectric power plant dam only confirms for the whole world that they must be expelled from every corner of Ukrainian land." Russia denied it and instead blamed Ukraine itself for the dam's damage. Follow live war updates.

– CNBC's Alex Harring, Lauren Feiner, Kif Leswing, Rohan Goswami, Michael Wayland, Holly Ellyatt and Sam Meredith contributed to this report.

Follow broader market action like a pro on CNBC Pro.

Copyright CNBC
Contact Us