Stock market futures slipped further on Thursday following Wall Street’s worst day in two weeks as investors grapple with the alarming rise in coronavirus cases, plus stocks to watch today in the Money & Markets Opening Bell.
The Top Story
A resurgence in coronavirus cases across the U.S. has revived fears of another lockdown to contain the pandemic and stop a Wall Street rally that was fueled by global stimulus in March.
The benchmark S&P 500 has lost nearly 6% in the last two weeks after coming within 5% of its record high. Analysts have cautioned further declines could be on the way as economic forecasts continue to look grim.
On Wednesday, the International Monetary Fund projected a nearly 5% drop in global economic output in 2020.
Walt Disney Co. (NYSE: DIS) slipped nearly 2% after it postponed the reopening of its theme parks due to the pandemic. Boeing Co. (NYSE: BA) fell 3.8% after Berenberg reduced its rating of the aircraft manufacturer to “sell,” suggesting the near-term risks for Boeing were elevated due to the coronavirus.
Stocks to Watch Today
Rite Aid Corp. (NYSE: RAD) — The American drugstore chain gained 9.5% in early trading after it blew away expectations for quarterly earnings and revenue. The company reported a $0.04 loss per share in earnings, better than the $0.38 per share loss predicted by analysts.
Accenture Plc (NYSE: ACN) — The Irish-based professional services company beat Wall Street estimates for both earnings and revenue. Its quarterly earnings were $1.90 per share — $0.05 higher than expectations. Shares of Accenture were up 3% in premarket trading.
McCormick & Company Inc. (NYSE: MKC) — The maker of spices, condiments and sauces blew away profit estimates in the previous quarter. It reported earnings of $1.47 per share — beating analysts’ projections by $0.31. Shares of McCormick were up 1.5%.
Wirecard Files for Insolvency After $2B Accounting Hole
The saga surrounding $2 billion missing, banks scratching their heads, and a CEO forced to resign has come to a head.
German fintech giant Wirecard AG has filed for insolvency just days after revealing more than $2 billion in cash missing from its balance sheet likely never existed in the first place.
According to The Wall Street Journal, shares of Wirecard were suspended from trading on the German exchange just prior to the announcement. Those shares have fallen nearly 90%, wiping out almost $12 billion in market value for the company since last week.
More than $100B in PPP Loans Remain Unclaimed
At one point, the U.S. Small Business Administration was approving nearly $25 billion in coronavirus loans a day, leaving government officials to wonder if there would be enough relief funds to go around.
Now, there is more than $100 billion left in the Paycheck Protection Program, according to Bloomberg. The SBA will stop taking applications on June 30.
It has also spurred debate in Congress on what to do with the leftover PPP money. One case for the leftover funds is to develop a second round of funding, specific to small businesses.
SoftBank CEO Leaves Alibaba Board
The board-level ties between two of Asia’s biggest technology companies will soon come to an end.
SoftBank Group Corp. CEO Masayoshi Son stepped down as a director of Chinese e-commerce giant Alibaba Group Holding Ltd. (NYSE: BABA) with immediate effect. SoftBank is Alibaba’s biggest shareholder — owning a nearly 25% stake.
Son’s announcement comes a month after Alibaba co-founder Jack Ma resigned from the SoftBank board.
What We’re Reading
Bull Market ‘Holy Trinity’ of Reasons to Buy Doesn’t Pass Sniff Test (Money & Markets)
The 4 Monumental Mistakes Hastening the Fall of the US Economy (Money & Markets)
The Bull & The Bear: This Economy Isn’t Getting Better, It’s Getting Worse (Money & Markets)
Here are the companies releasing earnings reports today:
Accenture Plc (NYSE: CAN)
FactSet Research Systems Inc. (NYSE: FDS)
McCormick & Co. Inc. (NYSE: MKC)
Nike Inc. (NYSE: NKE)
Rite Aid Corp. (NYSE: RAD)
Check back each morning before the opening bell for stocks to watch today with Opening Bell, here on Money & Markets.