Stock market news today, June 6, 2014: The Dow Jones today is headlined by the May jobs report, after the Dow Jones Industrial Average reached a record high again on Thursday. That happened after the European Central Bank announced plans to cut interest rates and possibly consider stimulus efforts. The ECB slashed its main refinancing rate to a historic low from 0.25% to 0.15%. It also cut its deposit rate to -0.1%.
Here are the top stories to watch to make your Friday profitable:
No More Weather Problems: The U.S. Labor Department announced that the U.S. added 217,000 jobs in May. That held the current unemployment rate at 6.3%, which the government claims is a sign of a strengthening economy. Unfortunately, the labor-force participation rate remained unchanged at a 36-year low of 62.8%.
This Might Escalate: Following a series of notices that blame service providers for slow streaming speeds, Verizon Communications Inc. (NYSE: VZ) has sent a cease and desist letter to Netflix Inc. (Nasdaq: NFLX). The ISP has threatened to sue Netflix if it continues to show error messages that blame the FiOs high-speed fiber-optic network for slow streaming speeds.
It's Party Time: The world's largest retail company Wal-Mart Stores Inc.(NYSE: WMT) is set to kick off its annual shareholder meeting today. The biggest discussion topic will likely center on how the company plans to reverse five consecutive quarters in U.S. sales declines. Wal-Mart is also dealing with an international scandal involving bribery allegations against certain international operations managers.
Banks Behaving Badly: The relations between France and the United States have worsened after American regulators suggested that BNP Paribas (OTC: BNPQY) settle a claim for $16 billion over charges that the French bank violated economic sanctions by operating in Sudan and Iran. This figure would have been the largest settlement ever, surpassing the $13 billion charge that JPMorgan Chase(NYSE: JPM) paid last year. France has accused the United States of acting unilaterally and irresponsibly against its largest bank, drawing significant criticism from the Hollande administration.
Banks Behaving Worse:The Wall Street Journal reports that Bank of AmericaCorp.(NYSE: BAC) is likely to settle a Department of Justice probe over mortgage deals for at least $12 billion. The settlement centers on risky loans that should have never been offered to customers at the height of the financial crisis.
Time for a Change: The global shipping firm United Parcel Service Inc.(NYSE: UPS) announced this morning that current Chief Operating Officer David Abney will soon become the company's chief executive officer. Abney will assume the top job on Sept. 1, while current Chairman and CEO Scott Davis will shift to nonexecutive chairman.
Today's Economic Calendar: Today's schedule includes the May jobs report and consumer credit data in the afternoon.
Earnings Reports: Stay tuned for earnings reports from Jos. A. Bank Clothiers Inc. (Nasdaq: JOSB), Oil-Dri Corporation of America (NYSE: ODC), and KMG Chemicals Inc. (NYSE: KMG).
Full U.S. Economic Calendar June 6, 2014
Federal Reserve Governor Jerome Powell spoke at 4:50 a.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.