1. – Powell Mixed Equity Futures Warns of Uncertainty
Equity futures were mixed on Tuesday on the last day of trading in the second quarter as Federal Reserve Chairman Jerome Powell warned that a rebound in the US economy could block if the spread of the coronavirus is not contained.
Contracts linked to the Dow Jones Industrial Average fell 64 points, futures on the S&P 500 fell 5 points and the Nasdaq, ultimately turned higher, up 3 points. Stocks posted strong gains on Monday, with the S&P 500 up 1.47%, after a better-than-expected housing report compensated for news that the coronavirus case exceeded 10 million people worldwide.
“We have entered a new phase and have done it sooner than expected,” Powell said in remarks prepared for the testimony before Tuesday’s appearance before the House Financial Services Committee. “All this bounceback in economic activity is welcome, it also presents new challenges – including the need to keep the virus in check.”
Powell will be joined Tuesday by US Secretary of the Treasury Steven Mnuchin.
Lawmakers have pumped more than $ 3 billion worldwide, the world’s largest economy, leading to renewed job growth and increased consumer spending.But Powell mentioned in his speech that more than 20 million Americans have lost their jobs since the pandemic took over 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 convinced that it is safe to re-engage in a wide range of activities.”
2. – Jerome Powell and FedEx en Plomb, Tuesday, Calendar
Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin will appear before the House Financial Services Committee at 12:30 p.m. ET.
Result Reports Expected Tuesday From FedEx (FDX) – Get The ReportConagra Brands (CAG) – Get The Report, Brand Acuity (AYI) – Get The Report and Steelcase (SCS) – Get The Report.
3. – Uber Makes $ 2.6 Billion Offer for Postmates
Uber Technologies (UBER) – Get The Report has made a buyout offer to buy Postmates’ start-up meal-delivery for around $ 2.6 billion, according to several reports.
The New York Times, citing three people familiar with the case, said talks between the companies were underway but warned the full potential of the case could not fall apart. The Wall Street Journal said that a deal could be announced next week, if not sooner.
An acquisition of Postmates could boost Uber food-distribution arm, Uber Mange, which saw demand soar as restaurants were closed during the coronavirus pandemic.
The user application for the GRUBhub GRUB was completed earlier this month Simply by Eating Takeaway.com who agreed to buy Grubhub for more than $ 7 billion.
4. – Royal Dutch Shell to Write Up to 22 Billion dollars
Royal Dutch Shell (RDS.A) – Get The Report will write down the value of its assets by $ 15 billion and $ 22 billion, as weakening demand during the coronavirus pandemic led to a collapse in energy prices.
Key Energy Fellow BP (BP) – Get The Report warned earlier this month, it could take a $ 17.5 billion write-down on its assets.
Shell said the largest of the value fixes would come from its gas business, where it could take charges of up to $ 9 billion.
Shell said Tuesday it expects fuel sales to drop 40% in the second quarter to 4 million barrels per day as demand has been severely constrained by travel restrictions imposed during the pandemic.
5. – Micron Gains from Lifting by Cloud on Demand
Micron Technology (MU) – Get The Reportthe memory chip maker was up 4.79% to $ 51.50 on Tuesday trading after fiscal year third quarter revenue and sales exceeded estimates and the company reported in the fourth quarter, earnings are expected to exceed analysts’ forecasts.
Large orders from giant cloud and a more favorable memory of environmental pricing has helped Micron Wall up the Street forecast.
Micron Gains in the form of a Demand Cloud Boosts Profit and Orientation: The 7 Key Points
For the quarter ended May 28, Micron said adjusted earnings of 82 cents per share on product sales increased 14% to $ 5.44 billion.
Analysts have expected adjusted earnings of 75 cents per share on revenues of $ 5.27 billion.
“We are preparing the industry’s most advanced DRAM technology in production and have delivered over 75% of our NAND volume of high value solutions, supported by recording recording” [solid-state-drive] quarterly revenues, ”CEO and President Sanjay Mehrotra said in a statement.
For the fourth quarter, Micron expects adjusted earnings of 95 cents to $ 1.15 a share. Revenue is expected to come in at $ 5.75 billion from $ 6.25 billion.