US stock futures signaled an upbeat start to the week amid rising geopolitical tensions and an upcoming high-stake G-20 summit in Japan.
The G-20 event, which begins on Friday in Osaka, is expected to include a meeting between US and Chinese Presidents, Donald Trump and Xi Jinping; with hopes abounded that a top-level encounter could produce a breakthrough in trade negotiation. The Trump administration had previously threatened to apply tariffs on another $300 billion worth of Chinese goods if a deal is not reached.
China's state-run, Xinhua news agency, confirmed for the first time on Sunday that President, Xi Jinping, will attend the two-day summit. China's vice commerce minister, Wang Shouwen, later told reporters in Beijing that it is important for both sides "to have to compromise and make concessions".
Today’s seemingly positive start comes after Friday’s session, where US stocks edged lower as investors measured recent implications between the US and Iran, while looking ahead to the G-20 trade talks.
Wall Street’s S&P 500 had set a new intraday high but ended the day -0.63% lower, following a pull-back in the Energy Sector (-0.19%).
The blue-chip Dow Jones Industrial Average and tech-heavy Nasdaq Composite shared a similar fate, both having climbed to a record high, before closing lower, down -0.37% and -0.15% respectively.
Ahead, in today’s economic calendar, Monday includes; the Chicago Fed National Activity Index for May at 8:30am EST, followed by the Dallas Fed Manufacturing Survey for June at 10:30am EST.
In corporate news; Cal-Maine Foods (CALM) is scheduled to release its financial figures today.
TODAY'S TOP HEADLINES
Iran & Trade: Trump Warns of More Iran Sanctions, But Not Much Is Left for the US to Target. (Bloomberg)
President Donald Trump is threatening Iran with additional sanctions as soon as Monday, but there’s not much left for the US to target because most of the Islamic Republic’s economy is already crippled under the weight of financial restrictions.
Cryptocurrency: Bitcoin soars above $11,000 for the first time in 15 months. (CNBC)
Bitcoin surged above the $11,000 mark on Monday hitting a more than 15-month high, as a high-profile project from Facebook throws cryptocurrencies back into the spotlight.
Today's Economical Announcements.
08:30AM - ★☆☆ - Chicago Fed Activity (May) (Previous: -0.45)
10:30AM - ★☆☆ - Dallas Fed Manufacturing (Jun) (Previous: -5.3)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Spotify Technology (SPOT): [DOWNGRADE] Evercore ISI downgraded it to “underperform” from “in line.” The firm also cut Spotify’s price target to $110 per share from $125 a share.
Caesars Entertainment (CZR): [BUYOUT] Agreed to be bought out by Eldorado Resorts (ERI) for $17.3 billion in cash and stock, including debt.
Dunkin’ Brands (DNKN): [UPGRADE] Wedbush upgraded Dunkin’ Brands to “outperform” from “neutral,” and raised his price target on the stock to $92 per share from $76 a share. The analyst said Dunkin’s same-store sales are at an inflection point “that is underappreciated by the Street.” Dunkin’ shares rose 1.3% to $80.55 per share.
Hostess Brands (TWNK): [UPGRADE] Upgraded to “buy” from “neutral” by an analyst at UBS. The analyst cited accelerating sales, the acquisition of a Chicago Bakery facility and strong free cash flow growth for the upgrade. Hostess shares climbed 1.4% in the premarket.
United Technologies (UTX): [UPGRADE] Upgraded to “outperform” from “market perform” by an analyst at Cowen. The analyst noted United’s proposed merger with Raytheon favors the Dow member, adding its decline since the deal’s announcement “offers a win-win for attractive standalone valuation or merger benefits.” United Technologies shares climbed 1.1%.
Deere (DE): [UPGRADE] Jefferies upgraded the tractor maker to “buy” from “hold,” noting that a “tightened global crop supply demand balance and positive momentum in farmer net income support double-digit large equipment growth through 2020.” Deere shares rose 1.4%.
International Paper (IP): [DOWNGRADE] Stephens downgraded the company to “equal weight” from “overweight”, noting a reflection of uncertainty around “containerboard pricing pronouncements.”
Alphabet (GOOGL): [REVIEW] MoffettNathanson trimmed his price target on the tech giant’s stock to $1,250 per share from $1,290 a share, citing a “growing lack of conviction that Google can maintain their historic 20%+ revenue growth.”
Electronic Arts (EA): [REVIEW] Stephens named the video game maker its “best idea in the space” ahead of the Apex Legends Season 2 release on July 2. The research firm said Fortnite’s popularity has “hit a lull”, giving EA an opportunity to “capture momentum” with its Season 2 release.
Disney (DIS): [NEWS] Pixar’s “Toy Story 4” hauled in $118 million in sales in its opening weekend, breaking a franchise record but falling short of expectations.
GAINERS: EPZM, SE, CTLT, CHRS
DECLINERS: GEO, HCSG, CXW, PZZA, BGS, SCS, WW, PZZA, RCL
WE WILL SHOW YOU THE WAY!