Here are five things you must know for Tuesday, June 2:
1. — Stock Futures Rise on Signs of Recovery
Stock futures rose Tuesday as investors balanced signs of economic recovery against social unrest in the United States that many fear could trip up the reopening of the U.S. economy from coronavirus lockdowns.
Wall Street traded higher but cautiously after President Donald Trump said Monday he would send the U.S. military to cities to quell civil unrest following the death of George Floyd, an unarmed black man, at the hands of a Minneapolis police officer.
Trump urged states to deploy their own forces to tamp down unrest that began late last weekand continued through the weekend.
“If a city or state refuses to take the actions necessary to defend the life and property of their residents, then I will deploy the United States military and quickly solve the problem for them,” Trump said outside the White House.
Contracts linked to the Dow Jones Industrial Average rose 178 points, futures for the S&P 500 gained 19 points and Nasdaq futures were up 68 points.
Stocks closed higher Monday as businesses across the U.S. began reopening following coronavirus lockdowns but trading was choppy as risks remained, such as trade tensions between Washington and Beijing.
“How long can markets remain buoyant?” asked Robert Carnell, regional head of research for the Asia-Pacific region at ING. “The honest answer, and one that may save you five minutes is, ‘I don’t know.’”
2. — Zoom Video and CrowdStrike Report Earnings
Earnings reports are expected Tuesday from Zoom Video (ZM) – Get Report, CrowdStrike (CRWD) – Get Report, Dick’s Sporting Goods (DKS) – Get Report, Lands’ End (LE) – Get Report, Cracker Barrel (CBRL) – Get Report and HealthEquity (HQY) – Get Report.
The economic calendar Tuesday includes Motor Vehicle Sales for May.
3. — Western Union Bids for MoneyGram
Western Union (WU) – Get Report reportedly is seeking to acquire MoneyGram International (MGI) – Get Report in a deal that would bring together two of the largest U.S. providers of money-transfer services.
Western Union has made a takeover offer for MoneyGram, a person familiar with the matter told Bloomberg. No decision has been made and Western Union could decide not to proceed with the deal, the person said.
MoneyGram was rising 38.61% to $3.59 in premarket trading Tuesday. Its market cap at the close of trading Monday was about $176 million. It also has about $878 million of debt, according to Bloomberg.
Western Union shares rose 8.4% to $22.45 in premarket trading.
4. — Apple’s iPhone Prices Slashed in China Ahead of 6.18 Festival
Prices for Apple’s iPhone 11, iPhone 11 Pro, iPhone 11 Pro Max and iPhone SE have been discounted on the tech giant’s official store on Alibaba-owned Tmall.
For instance, users on Tmall can buy an iPhone 11 64GB model for 4,779 yuan ($669.59), down around 13% from its original 5,499 yuan selling price, CNBC reported. The recently released iPhone SE, the cheapest in Apple’s range, is priced at 3,099 yuan, down from 3,299 yuan.
JD.com, an official Apple reseller, is offering even steeper discounts.
Will Wong, a research manager at IDC, told CNBC that it was only the second time that Apple has participated in the 6.18 event.
Apple’s stores in China were closed in February during the coronavirus pandemic but stores there are again operating.
5. — Stitch Fix Cutting 1,400 Jobs in California
“Any decision that impacts our hardworking and talented people is incredibly tough, but we believe this is the right thing to do for our business,” Stitch Fix CEO Katrina Lake said in a statement to The Wall Street Journal.
Most of the layoffs will take place in September.
Stitch Fix said it would be hiring about 2,000 stylists in lower-costs cities such as Dallas, Pittsburgh, Cleveland, Minneapolis and Austin, Texas, beginning this summer through 2021.
Stitch Fix was forced in March to temporarily close two distribution centers to comply with coronavirus health orders. The company also withdrew guidance for the third quarter and fiscal 2020 because of uncertainty created by the pandemic.