U.S. stock market futures started June sluggish after a strong showing in May as investors exercise caution due to increased protests across the country and more tension between the U.S. and China, plus stocks to watch today in the Money & Markets Opening Bell.
The Top Story
National Guard troops were deployed in 15 states and Washington, D.C. on Sunday in an attempt to quell a sixth night of rioting that began with peaceful protests over the death of a black man, George Floyd, in police custody.
Target Corp. (NYSE: TGT) and Walmart Inc. (NYSE: WMT) shuttered stores — pushing their shares down 2.3% and 0.8% respectively — while Amazon.com Inc. (Nasdaq: AMZN) scaled back deliveries amid the unrest that included looting in many cities.
Further denting sentiment, Beijing said the U.S. attempts to harm Chinese interests will be met with firm countermeasures. On Friday, U.S. President Donald Trump announced an end to special treatment for Hong Kong in response to a new security law that affects the territory’s autonomy.
The escalation of U.S.-China tensions poses a major threat to the stock market’s rebound since late March that was powered by expectations of a recovery from the coronavirus-led downturn.
Wall Street had rebounded late in Friday’s session, with the S&P 500 logging its biggest two-month percentage gain since 2009 after Trump’s measures against China were less threatening than feared.
As of 8 a.m. EDT, Dow Jones futures were down 0.2%. S&P 500 futures moved 0.25% lower while Nasdaq Composite futures fell 0.45%.
Stocks to Watch Today
Zynga Inc. (Nasdaq: ZNGA) — The social game developer said it was acquiring Turkish mobile game producer Peak for $1.8 billion in cash and stock. The company also raised its guidance for the current quarter. Shares of Zynga were up 8.2%.
Pfizer Inc. (NYSE: PFE) — Shares of the pharmaceutical company were down more than 6% in premarket trading after the company said its breast cancer drug Ibrance did not show “a statistically significant improvement” in breast cancer patients.
Coty Inc. (NYSE: COTY) — The American cosmetics company appointed its chairman, Peter Harf, as its new CEO along with a $4.3 billion transaction for Coty’s Wella, Clairol and OPI brands with KKR. Shares of Coty were up 7.7%.
China Halting Some US Farm Imports
The Chinese government has told some state-run agricultural companies to stop purchasing some American farm goods, including soybeans.
State-owned traders Cofco and Sinograin were ordered to suspend purchases, according to a report from Bloomberg. The latest riff is a sign that the phase one trade deal between Washington and Beijing could be in jeopardy.
Eli Lilly to Start Testing Experimental COVID-19 Drug
Indianapolis pharmaceutical company Eli Lilly & Co. (NYSE: LLY) said it will begin the first study of an experimental drug using the blood sample of a coronavirus survivor.
According to The Wall Street Journal, the company said testing will focus on the drug’s ability to treat patients hospitalized with COVID-19. Eventually, Eli Lilly said they hope to test whether the drug can prevent disease in people at risk for infection.
Shares of Eli Lilly were up 2.7% in premarket trading.
Goldman Sachs Rolls Back Pessimistic Look for American Stocks
Analysts with Goldman Sachs Group Inc. (NYSE: GS) have pulled away from their previous bearish outlook of the U.S. stock market, according to Bloomberg.
Analysts previously suggested the S&P 500 would drop to the 2,400 level, but the tune changed after Friday when the benchmark index closed above 3,000.
Now, Sachs strategists went so far as to suggest the S&P 500 could rally more to 3,200.
What We’re Reading
A Recession Is Assured. Follow This Plan So It Doesn’t Wreck Your Retirement (Money & Markets)
Hong Kong Stocks Jump As Investors Shrug Off US-China Tensions (CNN Business)
The Bull & The Bear: Key to Investing Amid US-China Tension, Wrecked Economy (Money & Markets)
Earnings Report
Here are the companies releasing earnings reports today:
Autohome Inc. (NYSE: ATHM)
Capital Southwest Corp. (Nasdaq: CSWC)
Embraer SA (NYSE: ERJ)
NGL Energy Partners LP (NYSE: NGL)
Perceptron Inc. (Nasdaq: PRCP)
Check back each morning before the opening bell for stocks to watch today with Opening Bell, here on Money & Markets.