Here are five things to know for Tuesday, June 30:
1. – Mixed stock futures when Powell warns of uncertainty
The future of stocks was mixed on Tuesday on the last trading day of the second quarter, as Federal Reserve chairman Jerome Powell warned that a rebound in the U.S. economy could stagnate if the spread of the coronavirus were not contained.
Contracts linked to the Dow Jones Industrial Average fell 64 points, S&P 500 futures decreased 5 points and Nasdaq futures became higher, rising 3 points. The shares posted solid gains on Monday, with the S&P 500 rising 1.47% after a better-than-expected housing report offset the news that coronavirus cases exceeded 10 million people worldwide.
“We have entered an important new phase and we have done so earlier than expected,” Powell said in remarks prepared ahead of Tuesday’s testimony before the House Financial Services Committee. “While this pickup in economic activity is welcome, it also presents new challenges, in particular the need to keep the virus under control.”
Powell will join U.S. Treasury Secretary Steven Mnuchin on Tuesday.
Lawmakers have injected more than $ 3 trillion into the world’s largest economy, which has led to an increase in job growth and an increase in consumer spending.
But Powell noted in his comments that more than 20 million Americans have lost their jobs since the pandemic occurred in mid-March.
“The way forward for the economy is extraordinarily uncertain and will largely depend on our success in containing the virus,” he said. “A full recovery is unlikely until people are sure that it is safe to re-engage in a wide range of activities.”
2. – Jerome Powell and FedEx lead Tuesday’s schedule
Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin will appear before the House Financial Services Committee at 12:30 pm ET.
Tuesday’s economic calendar also includes consumer confidence for June at 10 am ET.
FedEx earnings reports expected Tuesday (FDX) – Get reportConagra brands (CAG) – Get reportSharpness marks (AYI) – Get report and Steelcase (SCS) – Get report.
3. – Uber bids $ 2.6 billion for Postmates
Uber Technologies (UBER) – Get report has made a takeover bid to buy Meal Delivery Postmates for around $ 2.6 billion, according to multiple reports.
The New York Times, citing three people familiar with the matter, said talks between the companies were continuing but warned that any possible deal could fall apart. The Wall Street Journal said a deal could be announced next week if not sooner.
A Postmates acquisition could boost Uber’s food delivery arm, Uber Eats, which has seen demand grow as restaurants closed during the coronavirus pandemic.
The user’s bid for Grubhub GRUB was topped earlier this month by Just Eat Takeaway.com, which agreed to buy Grubhub for more than $ 7 billion.
4. – Royal Dutch Shell will score up to $ 22 billion
Royal dutch shell (RDS.A) – Get report It will write the value of its assets between $ 15 billion and $ 22 billion, as weaker demand during the coronavirus pandemic has caused a drop in energy prices.
Important energy partner BP (BP) – Get report warned earlier this month that it could take a $ 17.5 billion write-down on its assets.
Shell said the biggest writedowns would come from its gas business, where it could take on up to $ 9 billion.
Shell said Tuesday that it expects fuel sales to drop 40% in the second quarter to 4 million barrels per day as demand has been drastically reduced by travel restrictions imposed during the pandemic.
5. – Micron earnings high due to cloud demand
Micron technology (MU) – Get report, the memory chip maker, rose 4.79% to $ 51.50 in pre-market trade on Tuesday after its third-quarter tax earnings and sales exceeded estimates and the company said fourth-quarter earnings should exceed expectations. from analysts.
Major orders from cloud giants and a more favorable memory pricing environment helped Micron beat Wall Street’s forecasts.
Micron Wins As Cloud Demand Increases Revenue And Targeting: 7 Key Findings
For the quarter ended May 28, Micron reported adjusted earnings of 82 cents a share, as revenue increased 14% to $ 5.44 billion.
Analysts had expected adjusted earnings of 75 cents a share on revenue of $ 5.27 billion.
“We are incorporating the industry’s most advanced DRAM technology into production and have delivered over 75% of our NAND volume as high-value solutions, backed by record-breaking [solid-state-drive] revenue in the quarter, “CEO and President Sanjay Mehrotra said in a statement.
For the fourth quarter, Micron expects adjusted earnings of 95 cents at $ 1.15 per share. Revenue should be $ 5.75 billion to $ 6.25 billion.
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