Here are the most important news, trends, and analysis investors need to start their trading day:
1. Shares will rebound after Wall Street’s loss week
Traders are working on the New York Stock Exchange (NYSE) floor in New York City on June 3, 2022.
Brendan McDermid | Reuters
Wall Street was expected to take pre-market gains to Monday’s opening after a tough session on Friday, led by a nearly 2.5% drop in the Nasdaq. The Nasdaq and S&P 500 posted their eighth week down in the last nine, but maintained most of their respective gains of 6.8% and 6.6% from the previous week. The Dow Jones Industrial Average fell for the ninth week in the last 10 weeks, but also maintained more than the 6.2% advance of the previous week.
- Technology stocks, including Apple, rose in the pre-market. Apple will hold its annual developer conference on Monday. Amazon shares rose more than 2% to $ 125 each in the pre-market as the company’s 20 per cent stock split goes into effect on Monday’s opening. The prices of cryptocurrencies, which have recently been negotiated in conjunction with technology, rose on Monday, with bitcoins above $ 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 rising in May by 8.2% year-on-year, but falling again for the second month in a row.
2. Average gasoline prices in the U.S. increase to about $ 5 per gallon
Gasoline prices above $ 6.00 are announced at Station 76 in Santa Monica, California on May 26, 2022.
Lucy Nicholson | Reuters
Whether or not the United States has experienced a peak in inflation, rising gas prices show no signs of slowing down. The national average at the pump hit nearly $ 4.87 per gallon on Monday, according to AAA. California continued to be the highest in any state, with an average gasoline cost of $ 6.34 per gallon there.
The reasons for the dizzying increases: more demand in the face of the summer driving season and a continuing rise in oil prices. In fact, West Texas Intermediate and Brent crude were trading at about $ 120 a barrel, as traders doubted whether a 50% increase in OPEC + ‘s monthly production target would help alleviate reduced supply.
3. Chinese giant Didi rises after a report on the completion of the probes
Budrul Chukrut | LightRocket | Getty Images
Shares of Chinese car giant Didi rose about 65 percent in pre-market trading in the U.S. on Monday after The Wall Street Journal reported that Chinese regulators are concluding investigations into the company for a year. According to the Journal, the Chinese authorities plan as soon as next week to lift the ban on Didi adding new users and re-establishing the company’s application in national app stores.
- Even with pre-market gains on Monday, Didi shares have fallen about 80% since the June 2021 IPO of $ 14 each. Didi said in December that he would withdraw from the New York Stock Exchange and seek a quote in Hong Kong.
4. Tesla CEO Elon Musk seems to be sending conflicting messages about the template
Elon Musk, CEO of Tesla and SpaceX, at Tesla’s “Gigafactory” on March 22, 2022 in Gruenheide, southeast Berlin.
Patrick Pleul | AFP | Getty Images
Tesla CEO Elon Musk said Saturday that the electric vehicle maker’s total count will increase over the next 12 months, but that the number of salaried staff should change little. These comments seemed to go back from last week’s email to employees saying they needed 10% job cuts. In a separate email to executives, Musk said he has a “super bad feeling” about the economy. Shares of Tesla rose 3.6% in the pre-market on Monday after falling 9% on Friday.
- When asked about Musk’s statements, President Joe Biden said Friday that while the Tesla CEO was talking about fears and economic cuts, Ford increased its investment in building new electric vehicles, with an additional 6,000 union employees. in the middle west.
5. JetBlue increases its offer to buy low-cost Spirit Airlines
LaGuardia International Airport Terminal A for JetBlue and Spirit Airlines in New York.
Leslie Josephs | CNBC
Spirit Airlines rose 5% in pre-market after JetBlue sweetened its bid for the low-cost carrier on Monday. JetBlue said in a presentation that it would increase its breach of the deal to $ 350 million and pay a portion of that as a dividend of $ 1.50 per share if the deal is completed. In total, this increases JetBlue’s bid value to $ 31.50 per Spirit share.
- JetBlue, whose shares rose nearly 2% in the pre-market, previously offered $ 30 per share and a $ 3 kicker if Spirit entered negotiations. Spirit rejected it, favoring a lower offer from Frontier Airlines, thinking that regulators would not approve a JetBlue combination.
- Last week, Frontier’s father agreed to pay a $ 250 million severance pay for his deal. Frontier shares gained 1% in Monday’s pre-market. Spirit was scheduled to vote on Frontier’s bid Friday.
– CNBC’s Patti Domm, Arjun Kharpal and Lora Kolodny, as well as Reuters, contributed to this report.
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