Stock market news today, June 5, 2014:Dow Jones futures pointed toward a 0.02% gain on Thursday ahead of the highly anticipated policy statement from the European Central Bank (ECB). The rise comes fresh off of yesterday’s (Wednesday’s) notable surge, when the Dow Jones Industrial Average hit a new intraday high and the Standard & Poor's 500 Index hit its 16th record high of the year.
Here’s what you should know to make your Thursday profitable:
The Mobile Megadeal: A massive mobile deal could merge the third- and fourth-largest mobile phone networks if it receives regulatory approval. Sprint Corp. (NYSE: S) and T-Mobile US Inc. (NYSE: TMUS) have agreed in principle on a merger worth approximately $50 billion. The companies are now working on finalizing the agreement. Under the proposed deal, Sprint would buy T-Mobile for around $40 per share.
Insider Questions:FOX Business reports that Steve Cohen, head of hedge fund SAC Capital, has retained defense attorney David Boies to help him address questions surrounding the ongoing regulatory focus on insider trading. Regulators have targeted Cohen in civil and criminal reports for the last eight years. In addition, more than 10 people have been implicated, including one Cohen lieutenant, Mathew Martoma, who is now facing a possible 20-year sentence for insider trading.
Blame Verizon: Online streaming company Netflix Inc. (Nasdaq: NFLX) is under heat for releasing on-screen messages that blame users’ Internet service providers (ISPs) if the video fails to buffer quickly. The company is taking a more direct stance, recently targeting Verizon Communications Inc. (NYSE: VZ), whose CEO called the content provider’s targeting strategy a “PR Stunt.”
Today’s Economic Calendar: A full calendar features jobless claims, a speech by the Minneapolis Federal Reserve Bank President, the Federal Reserve balance sheet, and the Challenger Job-Cut Report. Investors are beginning to focus on U.S. employment data ahead of Friday’s release. A European merger, Alibaba IPO news, and major earnings reports are also on tap today…
Take It Easy:Don’t get carried away. That’s the message that Alibaba has sent to its employees and investors as it prepares for what could be the largest tech initial public offering ever. The company has been counseling its employees on how to spend and invest the approximate $41 billion the deal may bring in when it goes public in the United States this summer.
Into the West: German home-products manufacturer Henkel AG & Co KGaA (OTCMKTS ADR: HENOY) announced it will purchase Spotless Group SAS for more than 940 million euros ($1.27 billion) in cash. Spotless provides the German company with an entry point into Europe’s second-largest economy and is a market leader in laundry aids, insect control, and household care brands.
Earnings Reports: Stay tuned for earnings reports from VeriFone Systems Inc. (NYSE: PAY), Vail Resorts Inc. (NYSE: MTN), Navistar International Corp. (NYSE: NAV), J M Smucker Co. (NYSE: SJM), Diamond Foods Inc. (Nasdaq: DMND), and Ciena Corp. (Nasdaq: CIEN).
Full U.S. Economic Calendar June 5, 2014 (NYSE: all times EDT)
Challenger Job-Cut Report at 7:30 a.m.
Gallup US Payroll to Population at 8:30 a.m.
Jobless Claims at 8:30 a.m.
Bloomberg Consumer Comfort Index at 9:45 a.m.
EIA Natural Gas Report at 10:30 a.m.
3-Month Bill Announcement at 11 a.m.
6-Month Bill Announcement at 11 a.m.
3-Yr Note Announcement at 11 a.m.
10-Yr Note Announcement at 11 a.m.
30-Yr Bond Announcement at 11 a.m.
Minneapolis Federal Reserve Bank President Narayana Kocherlakota speaks at 1:30 p.m.
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.