For June 1, 2015, here's how the stock market did today, earnings reports, the top stock market news, and stocks to watch based on today's market moves...
Stock Futures Today
Stock futures today forecast a 79-point increase from Friday's close as investors turn an eye to Greece's ongoing debt debacle. It's also another busy week for economic data in the United States. In addition, the week will center on monetary policy statements from a number of prominent central banks around the world.
On Friday, the Dow slipped 118 points after the Commerce Department said the nation's economy retracted at a negative 0.7% rate during the first three months of 2015. That is a downward revision from its initial estimate of 0.2% last month. Bad weather, a shutdown of West Coast ports, and weak retail spending were blamed for the economy's lackluster performance.
Top News in the Stock Market Today
- The Stock Market Today: Investors will continue to digest the revised GDP report and turn an eye to a critical week of domestic economic data that culminates with the May unemployment update this Friday. This morning, HSBC released its final May PMI data for China. The PMI reversed from a series of monthly contractions, registering a reading of 50.2.
- Greek Tragedy: Greek financial ministers expressed confidence over the weekend that the country will be able to reach a deal with its creditors by the June 30 deadline and said that it could push back against portions of its anti-austerity program to avoid default. Greece has been negotiating with the International Monetary Fund and the European Union over possible reforms to ensure a deal benefits both sides.
- Tech Surge: Venture deals for upstart tech companies continue to raise incredible cash hoards. Last week, Snapchat Inc. announced it has raised $650 million in a private placement. Last year, the firm raised money from at least two investors that included Yahoo Inc. (Nasdaq: YHOO) and venture-capital firm Kleiner Perkins Caufield & Byers. The firm has a valuation between $15 billion and $19 billion. Check out this chart of the world's most valuable startups (Snapchat is fourth).
- Earnings Reports: Companies reporting earnings this morning include Walter Energy Inc. (NYSE: WLT), PVH Corp. (NYSE: PVH), iDreamSky Technology Ltd. (Nasdaq: DSKY), and NGL Energy Partners LP (NYSE: NGL).
- Oil Prices Today: Oil prices were falling this morning, as traders anticipate that OPEC will maintain high levels of production for years to come as it continues its price battle against U.S. shale producers. WTI crude futures for July slipped 0.9% this morning to hit $59.74 per barrel. Meanwhile, Brent oil was down 1.1% to hit $64.87 per barrel.
Pre-Market Movers in the Stock Market Today: F, GM, FCAU, HUM, AET, CI, MSFT
Pre-Market Movers 1: F: Domestic auto giants Ford Motor Co. (NYSE: F), General Motors Co. (NYSE: GM), and Fiat Chrysler Automobiles NV (NYSE: FCAU) are in focus as the companies plan to announce May sales volumes this week. Edmunds.com estimates that 1.6 million cars and trucks were sold for the month, raising the seasonally adjusted annual rate to 17.4 million. Investors are expecting a rally for Ford and GM stock if strong volume figures register this week. Shares of Ford were up 0.6% in premarket hours.
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- Pre-Market Movers 2: HUM: Rumors are swirling that Humana Inc. (NYSE: HUM) is exploring a sale after it received contact from several interested parties. According to reports, the company is working with Goldman Sachs Group (NYSE: GS) to explore a deal, which includes dialogue with competitors Aetna Inc. (NYSE: AET) and CIGNA Corp. (NYSE: CI), both of which are interested in a merger. Shares of Humana were down 0.2% in premarket trading.
- Pre-Market Movers 3: MSFT: Shares of Microsoft Corp. (Nasdaq: MSFT) were up roughly 0.6% in premarket hours after the company announced it will release its Windows 10 operating system on July 29. The tech giant had said in previous months the new software would be available "this summer," although a date or month had not been announced.
Stocks to Watch Today: SF, BCS, GOOG, STE, DLTR, FDO
- Stocks to Watch No. 1: SF: Investment bank Stifel Financial Corp. (NYSE: SF) could close a deal to purchase the U.S. wealth management division of Barclays Plc. (NYSE: BCS) this week. According to various reports, the deal has advanced significantly and the two firms are now negotiating key terms. However, another firm could decide to make an offer and upend this deal's progress.
- Stocks to Watch No. 2: GOOG: Investors seem to have been underwhelmed by Google Inc.'s (Nasdaq: GOOG, GOOGL) announcement that the firm has launched its mobile payment system Android Pay. The fact that shares have been on the decline since Thursday's announcement could suggest investors are worried about the tech giant's ability to compete with Apple Inc.'s (Nasdaq: AAPL) Apple Pay. However, Android Pay may have one advantage that few are considering. The company has better market share and reach than Apple's iPhone.
- Stocks to Watch No. 3: STE: The U.S. Federal Trade Commission has filed a lawsuit to prevent the $1.9 billion merger between medical technology giant STERIS Corp. (NYSE: STE) and sterilization services provider Synergy Health plc (LON: SYR). The companies said they plan to fight the FTC in the coming months. Shares of STE were flat in premarket hours.
- Stocks to Watch No. 4: DLTR: In order to comply with regulatory demands from the FTC, Dollar Tree Inc. (Nasdaq: DLTR) announced plans to sell 330 stores to private-equity firm Sycamore Partners. The sale of these stores, which comprise $45.5 million in operating income each year, is required to ensure approval for the firm's $8.5 billion takeover of rival Family Dollar Stores Inc. (NYSE: FDO). Sycamore said it will operate the stores under the brand Dollar Express.
Today's U.S. Economic Calendar (all times EST)
- Personal Income and Outlays at 8:30 a.m.
- Boston Federal Reserve Bank President Eric Rosengren speaks at 9:05 a.m.
- PMI Manufacturing Index at 9:45 a.m.
- ISM Manufacturing Index at 10 a.m.
- Construction Spending at 10 a.m.
- 4-Week Bill Announcement at 11 a.m.
- 3-Month Bill Auction at 11:30 a.m.
- 6-Month Bill Auction at 11:30 a.m.
- Gallup US Consumer Spending Measure at 1 p.m.
What Investors Must Know This Week
- Your Guide to the Upcoming Snapchat IPO
- How to Profit from the Coming Energy Debt Bubble
- Invest Like Warren Buffett? Don't Try This at Home
About the Author
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.