Stock market futures climbed to three-month highs as investors continued to bet big on a rapid recovery for the U.S. economy despite fears of disruption from nationwide protests over race, plus stocks to watch today in the Money & Markets Opening Bell.
The Top Story
Travel sector stocks, including American Airlines Group Inc. (Nasdaq: AAL), United Airlines Holdings Inc. (Nasdaq: UAL), Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) and Carnival Corp. (NYSE: CCL), climbed between 3.1% and 5% in premarket trading.
Economic data pointing to a quick recovery, trillions of dollars in stimulus and a restart in business have helped the S&P 500 climb about 38% from its March lows, leaving it only about 11% below its Feb. 19 record high.
Investors, however, are keeping a close eye on U.S.-China tensions and protests in America over the death of a black man in police custody.
Demonstrators set fire to a strip mall in Los Angeles, looted stores in New York City and at least five U.S. police were hit by gunfire, hours after President Donald Trump vowed to deploy the U.S. military to regain control of the streets, according to Reuters.
Stocks to Watch Today
Land’s End Inc. (Nasdaq: LE) — The clothing and home decor retailer reported same-store sales growth of 14.2% in February but said its earnings loss was wider than Wall Street expectations. Shares of Land’s End were up 0.4%.
Starbucks Corp. (Nasdaq: SBUX) — Shares of the American coffee company were down 0.6% after reports surfaced that it asked workers to choose between shorter hours or unpaid leave until September due to sluggish sales.
Moneygram International Inc. (Nasdaq: MGI) — The money transfer company is the target of a takeover bid by rival The Western Union Co. (NYSE: WU). No purchase price has been disclosed. Shares of Moneygram were up nearly 53%.
Online Retailer Laying off 1,400 in California
Wardrobe styling service Stitch Fix Inc. (Nasdaq: SFIX) said it plans to lay off 1,400 of its stylists in California.
According to The Wall Street Journal, most of the layoffs will take place in September and those affected will be able to relocate and stay with the San Francisco-based company.
The online retailer also said it will be hiring around 2,000 stylists in lower-cost cities like Pittsburgh, Dallas, Cleveland, Minneapolis and Austin, Texas, starting this summer.
Shares of Stitch Fix were down 0.5% in premarket trading.
NetEase Could Raise $3 Billion in Hong Kong Listing
Chinese internet technology company NetEase Inc. (Nasdaq: NTES) hopes to raise around $3 billion with a secondary listing on the Hong Kong stock market.
The company said it was issuing more than 171 million new shares at a maximum price of around $16.26, according to CNN Business. That could see the company bring in an additional $2.8 billion if the price is firm at the top of the range. The final price is expected to be set on Friday.
NetEase plans to start trading on the Hong Kong exchange on June 11.
Despite Tensions, American Exporters Still Selling Soy to China
Even though the Chinese government ordered some state-run businesses to halt the purchase of American agricultural products, several cargoes of soybeans are still being sold.
According to Bloomberg, shippers sold as many as four cargoes of U.S. soybeans from the new crop. Sources told the media outlet that state-run stockpiler Sinograin was bidding for cargoes coming from the Pacific Northwest, even though Beijing has told those companies not to.
What We’re Reading
US CFOs Say the Dow Is About to Crash to 19K — ‘It Is Definitely Bearish News’ (Money & Markets)
Store Closing Sale Will Be Different Because of COVID-19 (USA Today)
Lockdown Darlings Show Recession Is Ahead, Not Behind Us (Money & Markets)
Here are the companies releasing earnings reports today:
Build-A-Bear Workshop Inc. (NYSE: BBW)
Cracker Barrel Old Country Store Inc. (Nasdaq: CBRL)
Dick’s Sporting Goods Inc. (NYSE: DKS)
Digital Turbine Inc. (Nasdaq: APPS)
Zoom Video Communications Inc. (Nasdaq: ZM)
Check back each morning before the opening bell for stocks to watch today with Opening Bell, here on Money & Markets.