U.S. stock market futures were down slightly on the last trading day of the second quarter Tuesday as the coronavirus and renewed U.S.-China trade tensions weighed on what may be the S&P 500’s best quarter since 1998, plus stocks to watch today in the Money & Markets Opening Bell.
The Top Story
Federal Reserve Chair Jerome Powell is scheduled to testify before the House Financial Services Committee this afternoon. In a preview of the prepared remarks, he said the outlook for the U.S. economy was “extraordinarily uncertain.”
On another front, U.S.-China trade tensions have started to heat up as Beijing officially passed a national security law related to Hong Kong. That has pressed Washington to remove the administrative region’s special status — potentially impacting trade.
Concerning the economic rebound, consumer confidence is expected to jump from 86.6 in May to 91.8 in June while data on manufacturing activity and employment are due out Wednesday and Thursday.
Stocks to Watch Today
Micron Technology Inc. (Nasdaq: MU) — The computer memory manufacturer beat Wall Street expectations for both earnings and revenue in the last quarter. It also said it expects its next quarter profits to also top forecasts. Shares of Micron Technology were up 6.2% in premarket trading.
Lululemon Athletica Inc. (Nasdaq: LULU) — Shares of the athletic apparel retailer jumped nearly 4.4% as it announced plans to buy at-home fitness startup Mirror for $500 million. Mirror is considered a direct competitor to Peloton Interactive Inc. (Nasdaq: PTON).
Conagra Brands Inc. (NYSE: CAG) — The packaged food company reported a quarterly profit of $0.75 per share, $0.09 above Wall Street expectations. It also beat projections on revenue and gave current-quarter guidance exceeding estimates. Shares of Conagra were up 6%.
More Than 12 International Stock Indexes in Correction Territory
As the first half of 2020 comes to an end, over a dozen international stock indexes are on pace to close out the first six months down at least 10% from their recent highs.
According to CNBC, the Greek ATHEX composite index has dropped 33% since reaching a high in January. Spain’s IBEX, Italy’s FTSE MIB and Portugal’s PSI 20 Index were all at least 20% lower than their previous highs.
Indexes in the U.K., Brazil, Argentina, France, Germany, India, Hong Kong and Switzerland were all poised to close well into correction territory for the first half of the year.
Uber Eyeing Postmates for Nearly $2.6 Billion
Uber Technologies Inc. (NYSE: UBER) is trying to expand its meal delivery service and is looking to buy Postmates Inc. for around $2.6 billion, according to The Wall Street Journal.
If a deal happens, it could be announced as soon as next week.
Postmates has been in discussion with other potential buyers in the last year, but has also been planning its own initial public offering — and was close to making its IPO filing public.
Shell Writing Down Nearly $22 Billion Due to Coronavirus
Royal Dutch Shell Plc (NYSE: RDS.A) is looking to write down the value of its assets by nearly $22 billion as lower oil prices push the oil giant away from fossil fuels.
The company cut its outlook on energy prices on Tuesday, saying it expects Brent crude oil to cost around $40 per barrel in 2021 and $50 per barrel in 2022, according to CNN Business.
Shell said it would “adapt to ensure the business remains resilient.” The company cut its dividend in April — the first time it cut its dividend since World War II.
What We’re Reading
3 Crucial Investment Tips I Give My Grandfather (Money & Markets)
Former Facebook VP: Big-Tech Breakup Coming. What That Means for Stocks (Money & Markets)
Why Market Sentiment Trumps Economic Recovery Data in This Environment (Money & Markets)
Here are the companies releasing earnings reports today:
- Conagra Brands Inc. (NYSE: CAG)
- FedEx Corp. (NYSE: FDX)
- RTI Surgical Holdings Inc. (Nasdaq: RTIX)
- Stein Mart Inc. (Nasdaq: SMRT)
- X Financial (NYSE: XYF)
Check back each morning before the opening bell for stocks to watch today with Opening Bell, here on Money & Markets.