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Stock Futures Today
Futures for the Dow Jones today (Monday) forecasted a 93-point decline from Friday's close on news that debt talks between Greece and its international creditors collapsed on Sunday afternoon. This morning, the Dow received some positive news when CVS Health Corp. (NYSE: CVS) gained 1.2% after the company announced a deal to operate pharmacies inside of Target Corp. (NYSE: TGT) locations. In addition, Alibaba Holding Group Ltd. (NYSE: BABA) announced plans to launch its own streaming service in China.
On Friday, the DJIA pared weekly gains as investors grow more nervous over Greece's debt talks and speculation that the Federal Reserve could increase interest rates in September. Shares of the National Bank of Greece (NYSE ADR: NBG) again sold off sharply, falling more than 13% this morning, as concerns over the nation's financial sector continue to worsen.
Top News in the Stock Market Today
- The Stock Market Today: This morning, concerns over Greece's unwillingness to fulfill its debt obligations to international creditors spread across the Asian and European markets before U.S. markets opened. A few critical economic reports – the Empire-manufacturing index, May industrial production, and the National Association of Home Builders (NAHB) housing market index – will be released this morning.
- Failure in Focus: The problems in Greece are threatening the future of the European Union and its currency, the euro. On Sunday, discussions between the country and its creditors broke down, as both sides failed to reach a conclusion. EU officials blamed the failure on Greece and said they have refused to comply with any proposals to repay roughly $1.8 billion to the International Monetary Fund (IMF) by June 30. Despite much speculation, Greece Finance Minister Yanis Varoufakis said yesterday that his country will rule out a possible 'Grexit' from the euro zone. The Finance Minister said that leaving the EU was not a "sensible solution."
- Saudi Stocks: Today, Saudi Arabia will open its stock market to foreign investors for the first time in its history. The news is very significant because one of the world's largest markets – and richest – has remained off limits to international investors. The liberalization of its policies stands to be a significant boon to Persian Gulf nations like the United Arab Emirates, Qatar, and Kuwait.
- Oil Outlook: Oil prices were sliding this morning as oversupply concerns outweighed declining demand and the U.S. dollar strengthened against the Euro as concerns over Greece spread. WTI crude futures for July ticked down 0.9% this morning to hit $59.42 per barrel. Meanwhile, Brent oil fell 1.1% to hit $63.11 per barrel.
- Earnings Reports: Companies reporting earnings today include Comverse Inc. (Nasdaq: CNSI), Motorcar Parts of America Inc. (Nasdaq: MPAA), Speed Commerce Inc. (Nasdaq: SPDC), and Walter Energy Inc. (NYSE: WLT).
Pre-Market Movers in the Stock Market Today: LL, HD, SPF, RYL, DHI, LEN, PHM
- Pre-Market Movers No. 1, LL: Shares of Lumber Liquidators Holdings Inc. (NYSE: LL) gained more than 4% on Friday. Hedge fund manager Whitney Tilson, a founder of Kase Capital Management who made a nice sum shorting LL shares, told reporters last week that a rumor was swirling that Home Depot Inc. (NYSE: HD) might purchase the company for $35 to $40 a share. Tilson laughed, calling it the "dumbest rumor ever." His rationale is that it would be very difficult to obtain funding because private equity firms and other financiers do not know the true extent of the lumber company's liabilities in the wake of its numerous lawsuits.
- Pre-Market Movers No. 2, SPF: Shares of Standard Pacific Corp. (NYSE: SPF) were on the move this morning on news that the company will engage in a $5.2 billion merger with West Coast rival Ryland Group Inc. (NYSE: RYL). The deal will create the nation's fourth-largest domestic homebuilder and could ignite a slew of other deals as the housing sector's recovery remains frustratingly sluggish. The new company will rank behind competitors D.R. Horton Inc. (NYSE: DHI), Lennar Corp. (NYSE: LEN), and PulteGroup Inc. (NYSE: PHM).
- Pre-Market Movers No. 3, TWTR: Last week's CEO shakeup at Twitter Inc. (Nasdaq: TWTR) has turned a number of heads, and reports are circulating on what the company's next leader must do in order to succeed: Connect disgruntled advertisers with its millions of users and help them drive revenue sales. Rumors speculate the company's President and head of revenue Adam Bain is the early favorite to replace interim CEO Jack Dorsey. This morning, Saudi Prince Alwaleed Bin Talal said that Dorsey, who is a company co-founder, should not be the permanent chief executive. Shares of Twitter were down 0.5% today.
Stocks to Watch Today: WING, CMG, SHAK, TWTR, RDS.A, BA, EADSY
- Stocks to Watch No. 1, WING: Shares of Wingstop Inc. (Nasdaq: WING) are back in focus after the company surged more than 60% in its public debut on Friday. The restaurant chain had priced its initial public offering of 5.8 million shares at $19 a share, but quickly peaked at $31.99 in just its first 30 minutes of trading. Over the past few years, quick-service restaurants ranging from Chipotle Mexican Grill Inc. (NYSE: CMG) to Shake Shack Inc. (NYSE: SHAK) have provided a boon to investors as they capitalize on evolving changes in U.S. diets and consumer habits.
- Stocks to Watch No. 2, RDS.A: The top oil producer in the Gulf of Mexico Shell Oil Company announced plans to remove all of its non-essential employees from its offshore platforms. The U.S. arm of Royal Dutch Shell plc (ADR) (NYSE: RDS.A) is taking precautionary measures on news that there is an 80% chance that a storm heading for the Gulf could become a tropical cyclone within the next two days.
- Stocks to Watch No. 3, BA: The Paris airshow is in high gear on Monday, as airline manufacturers compete for orders. The annual event is likely to fuel a significant amount of orders for Boeing Co. (NYSE: BA) and its chief competitor Airbus Group (OTC: EADSY), although companies are tempering expectations compared to last year's record volumes. This morning, Boeing Chairman CEO Jim McNerney said his company received two large orders from India and Qatar and said his company has a massive backlog that is good for the firm's short- to mid-term outlook. He also dismissed concerns about the pending June 30 deadline for reauthorization of the Export-Import Bank, saying he expects Congress to take action soon. He also said he expects the Tran-Pacific Partnership treaty to be authorized.
Today's U.S. Economic Calendar (all times EST)
- Empire State Manufacturing Survey at 8:30 a.m.
- Industrial Production at 9:15 a.m.
- Housing Market Index 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.
- Treasury International Capital at 4 p.m.
What Investors Must Know This Week
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.