U.S stock market futures were mixed as investors dealt with a surprise quarterly loss for Nike and the Federal Reserve’s decision to add shareholder payout restrictions to big banks, plus stocks to watch today in the Money & Markets Opening Bell.
The Top Story
Nike Inc. (NYSE: NKE) slipped more than 3% — the most among the blue-chip Dow Jones stocks trading before the opening bell — as the footwear manufacturer posted its first loss in two years.
Big banks like Bank of America Corp. (NYSE: BAC), JPMorgan Chase & Co. (NYSE: JPM) and Goldman Sachs Group Inc. (NYSE: GS) were also down after the Federal Reserve capped dividend payouts (see below).
In premarket trading, Facebook Inc. (Nasdaq: FB) dropped 1% after Verizon Communication Inc. (NYSE: VZ) joined an advertising boycott that called out the social media platform for not doing enough to combat hate speech.
On the economic front, the Commerce Department is expected to release data that shows personal income dropped 6% after surging 10.5% in April.
Stocks to Watch Today
Seanergy Maritime Holdings Corp. (Nasdaq: SHIP) — The maritime company reported a 17% decrease in net revenues in the previous quarter. It also reported a net loss of $8.3 million in the quarter. Shares of Seanergy Maritime were down over 33%.
BlackBerry Ltd. (NYSE: BB) — Shares of the enterprise software company were off by 1% after it missed revenue projections for the last quarter. The company reported revenue of $214 million, below Wall Street’s expectations of $215.3 million.
Big Lots Inc. (NYSE: BIG) — The American retail company said it expects adjusted FY 2020 earnings to be between $2.50 and $2.75 per share with second quarter growth of 20% or more. Shares of Big Lots were up 10.7% in premarket trading.
Federal Reserve Adds Restrictions on Bank Dividends
Big banks will be required to suspend share buybacks and cap dividend payments at their current levels for the third quarter of this year. Dividends will be paid based on a formula tied to recent earnings.
Banks will also be required to resubmit their payout plans later this year and restrictions on payouts could stay in effect. The cycle could be repeated every quarter.
White House Could Intervene for 5G’s Future
In an attempt to harden competition against Chinese telecom giant Huawei Technologies Co., the White House is looking at a variety of measures.
According to The Wall Street Journal, one of those measures includes prodding large U.S. technology companies like Cisco Systems Inc. (Nasdaq: CSCO) to acquire European companies Ericsson AB (Nasdaq: ERIC) or Nokia Corp. (Nasdaq: NOK).
Within that, discussions have included using tax breaks and export-bank financing or supporting a private-equity group to take either company private. The government is also looking at “open” network technology to help U.S. startups develop technology for 5G equipment.
Wirecard Auditors Suggest ‘Elaborate’ Fraud in Missing Billions
A day after German fintech giant Wirecard AG filed for court protection from creditors, its longtime auditor accused their client of “elaborate and sophisticated fraud” that contributed to more than $2 billion going missing.
Ernst & Young said they are not responsible for their role in the scandal that led Wirecard’s CEO Markus Braun to resign and a 90% drop in market value for the company, according to Bloomberg.
Now Ernst & Young are facing a lawsuit filed by investors that claim the company failed to flag nearly 1 billion euros in assets improperly booked in 2018.
What We’re Reading
Funds Positioned for Potential June 30 Sell-Off. Should You Worry? (Money & Markets)
Costco Brings Back Samples But Pulls Sheet Cakes (USA Today)
5 Simple Steps to 10% Yearly Returns and Safe Dividends (Money & Markets)
Here are the companies releasing earnings reports today:
Aesthetic Medical International Holdings Group Ltd. (Nasdaq: AIH)
Apogee Enterprises Inc. (Nasdaq: APOG)
MakeMyTrip Ltd. (Nasdaq: MMYT)
Natuzzi S.p.A. (NYSE: NTZ)
Staffing 360 Solutions Inc. (Nasdaq: STAF)
Check back each morning before the opening bell for stocks to watch today with Opening Bell, here on Money & Markets.