Here are the top news, trends and analysis that investors need to start their trading day:
1. Stocks Prepare to Rebound After Wall Street Loss Week
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, June 3, 2022.
Brendan McDermid | Reuters
Wall Street was set to take pre-market increases at Monday’s opening after a tough session on Friday, led by the Nasdaq down nearly 2.5%. The Nasdaq and S&P 500 indexes posted their eighth week of lows in the past nine but held the bulk of the previous week’s 6.8% and 6.6% gains. The Dow Jones Industrial Average declined for its ninth out of the last ten weeks but also held more than the previous week’s over 6.2%.
- Shares of technology companies, including Apple, rose in the pre-market. Apple is scheduled to hold its annual developer conference on Monday. Amazon shares are up more than 2% to $125 per share in the primary market, as the company’s 20-for-1 stock split goes into effect at Monday’s opening. Cryptocurrency, which recently traded alongside technology, rebounded on Monday, with bitcoin surpassing $31,000.
- At the end of this trading week, investors and the Federal Reserve take a look at the latest Consumer Price Index. Economists see retail inflation in May rising 8.2% year over year, but declining again for the second month in a row.
2. Average US gas prices creep toward $5 a gallon
Gas prices over $6.00 are announced at Station 76 in Santa Monica, California, on May 26, 2022.
Lucy Nicholson | Reuters
Whether or not the US has experienced peak inflation, rising gas prices show no signs of abating. The national average at the pump was nearly $4.87 per gallon as of Monday, according to the AAA. California continued to rank first of any state, with an average gas cost of $6.34 per gallon.
Reasons for the staggering increases: increased demand ahead of the summer driving season and persistently high oil prices. In fact, WTI and Brent crude traded to around $120 a barrel as traders doubted whether a 50% increase in the OPEC+ monthly production target would help ease the supply tightness.
3. Chinese riding giant Didi rattles off after report of probe ending
Badrul Shkorot | Light Rocket | Getty Images
Shares of Chinese passenger services giant Didi jumped nearly 65% in pre-market trading in the United States on Monday after the Wall Street Journal reported that regulators in China were ending a year-long investigation into the company. According to the newspaper, early next week, the Chinese authorities are planning to lift the ban on Didi adding new users and re-implement the company in local app stores.
- Even with Monday’s pre-market gains, Didi’s shares are down about 80% since its June 2021 IPO of $14 per share. Didi said in December it would remove its listing from the New York Stock Exchange and would seek to list its shares in Hong Kong instead.
4. Tesla CEO Elon Musk appears to be sending a mixed message about hiring
Tesla and SpaceX CEO Elon Musk at Tesla’s “Gigafactory” on March 22, 2022 in Gruenheide, southeast of Berlin.
Patrick Balloul | AFP | Getty Images
Tesla CEO Elon Musk said on Saturday that the total number of employees of the electric car maker will rise over the next 12 months, but that the number of salaried employees won’t change much. These comments appear to retract an email sent last week to employees who said a 10% job cut was needed. In a separate email to executives, Musk said he had a “very bad feeling” about the economy. Tesla shares jumped 3.6% on Monday after falling 9% on Friday.
- When President Joe Biden was asked about Musk’s comments, he said Friday that while Tesla’s CEO has talked about concerns and economic cuts, Ford has increased its investment in building new electric cars, with an additional 6,000 union employees in the Midwest.
5. JetBlue increases offer for low-cost Spirit Airlines
LaGuardia International Airport, Terminal A of JetBlue Airways and Spirit in New York.
Leslie Josephs | CNBC
Spirit Airlines jumped 5% in the primary market after JetBlue on Monday improved its bid for the ultra-low-cost carrier. JetBlue said in a filing that it will increase the deal breakup fee to $350 million and will pay a portion of that as $1.50 per share dividend if the deal goes through. Overall, that increases JetBlue’s offering to $31.50 per Spirit share.
- JetBlue, whose shares are up nearly 2% in the primary market, is offering $30 per share and $3 if Spirit enters negotiations. Spirit refused, favoring a lower bid from Frontier Airlines, considering that the organizers would not approve of JetBlue.
- Last week, Frontier’s parent company agreed to pay a $250 million termination fee on its deal. Shares of Frontier gained 1% in the market on Monday. Spirit was scheduled to vote on the Frontier show on Friday.
– CNBC channel Patty DoomAnd the Arjun Kharbal And the Laura Kolodny As well as Reuters contributed to this report.
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