Here are five things to know for Monday, July 6:
1. – Stock futures jump after the increase in Chinese markets
Stock futures rose on Monday, picking up momentum from a surge in Chinese markets amid improving bullish sentiment.
Contracts linked to the Dow Jones Industrial Average increased 356 points, futures for the S&P 500 gained 37 points and Nasdaq futures rose 124 points after the three-day weekend of Independence Day.
The Shanghai Composite Index closed Monday with a gain of 5.7%, the biggest jump in five years, after influential Chinese state media said encouraging a “healthy” bull market after the coronavirus pandemic was now more important to the economy than ever, according to a Bloomberg report.
However, an increase in new cases of coronavirus in states such as Florida, Texas, and California and the possibility of renewed blockages and lower consumer spending led Goldman Sachs to lower its 2020 growth forecast for the United States.
Goldman’s chief economist Jan Hatzius wrote in a note over the weekend that he expects the US economy to contract 4.6% in 2020 compared to an earlier outlook calling for a 4.2 drop. %.
“The healthy rebound in consumer services spending seen since mid-April now appears to have stalled in July and August as authorities impose new restrictions to contain the spread of the virus,” Hatzius wrote.
2. – Coronavirus – The Latest
The number of confirmed global cases of the coronavirus has increased to 11,457,993, according to Johns Hopkins University., and deaths increased to 534,460.
The United States has 2,888,729 cases of coronavirus, the most in the world, according to Johns Hopkins. Deaths in the United States have risen to 129,947, also the most in the world.
Coronavirus cases in the US increased by almost 56,000 from Saturday to Sunday, a 2% increase from the average daily increase of 1.8% over the past week, according to Johns Hopkins.
Florida reported more than 200,000 cases of the virus Sunday, 5.3% more than the previous day. In California, the state reported 5,410 new cases, an increase of 2.1%. Los Angeles County had a record 3,187 new Covid-19 cases on Friday, Bloomberg noted.
3. – Uber will buy Postmates for $ 2.65 billion
Uber Technologies Giant (UBER) – Get report agreed to acquire the Postmates food delivery service for $ 2.65 billion in stock.
The deal is expected to be announced Monday.
Uber Eats chief Pierre-Dimitri Gore-Coty is expected to continue to run Uber’s combined delivery business, Bloomberg reported, citing according to a person close to the matter. Postmates CEO Bastian Lehmann and his team will stay to manage Postmates as a separate service, someone else said.
Postmates lags far behind market-leading DoorDash, but still controls a 10% share of the US food delivery market, it would also fit Uber’s diversification strategy, with passenger traffic dropping. amid the coronavirus pandemic, and would soften the blow of losing to Just Eat Takeaway in last month’s $ 7.3 billion battle for Grubhub (FOOD) – Get report.
4. – Warren Buffett Captures Dominion Energy’s Natural Gas Assets
Warren Buffett’s Berkshire Hathaway (BRK.A) – Get report agreed to buy Dominion Energy (re) – Get report Natural gas transmission and storage assets for $ 4 billion.
With the debt included, the transaction amounts to around $ 10 billion.
The acquisition is Berkshire Hathaway’s largest acquisition in more than four years. Buffett had said at the conglomerate’s annual shareholder meeting in May, even when the shares fell sharply during the coronavirus pandemic, that he saw no “attractive” deal.
It also revealed in May that Berkshire Hathaway had amassed a $ 137 billion cash pile.
“We are very proud to add such a large portfolio of natural gas assets to our already strong energy business,” said Buffett, who serves as President and CEO of Berkshire Hathaway.
5. – Monday’s economic calendar
The economic calendar for Monday includes the PMI services index for June at 9:45 a.m. ET and the ISM non-manufacturing index for June at 10 a.m. Reports scheduled for later in the week include the producer price index and weekly unemployment claims.
There are no major earnings reports scheduled for Monday, but later in the week Paychex will issue reports. (PAYX) – Get reportLevi Strauss (LEVI) – Get report, Bed bath and beyond (BBBY) – Get report and Walgreen Boots Alliance (AMB) – Get report.
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