- U.S. stock futures were relatively flat Monday after theDow Jones Industrial Average, S&P 500 and Nasdaq rallied on Friday.
- AMC shares muted after skyrocketing in a wild trading week
- Tesla dropped in premarket trading after canceling plans for a longer-range sedan.
(June 7) U.S. equity-index futures were mixed, paring earlier losses, as investors weighed inflation risks and the impact of a minimum corporate tax on technology firms. Treasuries fell, while the dollar erased a gain.
Futures on the Nasdaq 100 declined, while contracts on S&P 500 and Dow Jones Industrial Average were little changed.
At 7:48 a.m. ET, Dow e-minis were up 29 points, or 0.08%, S&P 500 e-minis were down 2.25 points, or 0.05%, and Nasdaq 100 e-minis were down 26.75 points, or 0.19%.
Investors were wary how shares of major tech firms would react to the G7’s agreement on a minimum global corporate tax rate of at least 15%, although securing approval not to mention enforcement from the whole G20 could be a tall order. So far, the reaction was muted with Nasdaq futures down 0.4%, highlighting investor concern that a pure growth narrative may no longer be enough to support stocks. Technology shares underperformed in Europe as well, with the benchmark gauge for the sector falling from the highest level since April.
“I would assume that it (the tax deal) is not helping the market in the sense that these Internet giants are going to be taxed more....it has an impact on sentiment in equity markets, but the reality is it has already been priced in,” said Sebastien Galy, senior macro strategist at Nordea Asset Management. “So even though equity markets in the U.S. are under pressure on the futures side, I’d expect it not to last till the end of the day.”
Tesla fell 0.34% in premarket trading, after Chief Executive Officer Elon Musk tweeted on Sunday the Model S Plaid+ will be canceled.
The 10-year rate added two basis points after Treasury Secretary Janet Yellen said on Sunday a slightly higher interest-rate environment would be a plus.
Oil in New York slipped after rising to $70 per barrel as short-term demand worries continued.
Bitcoin rebounded above $36,500 after a roller-coaster ride over the weekend amid a cryptocurrency crackdown in China.
Stocks making the biggest moves in the premarket:
1) Amazon.com(AMZN) – CEO Jeff Bezos announced that he and his brother Markwill join an auction winneraboard the first human spaceflight by Bezos' Blue Origin on July 20. Bezos is set to step down as Amazon CEO on July 5 in favor of Andy Jassy.
2) U.S. Concrete(USCR) – The concrete supplier agreed to be bought by construction materials makerVulcan Materials(VMC) for $74 per share in cash, or about $1.29 billion. That's a nearly 30% premium over U.S. Concrete's Friday closing price of $57.14. U.S. Concrete shares soared 27.7% in premarket action.
3) G-III Apparel(GIII) – The apparel maker reported quarterly earnings of 53 cents per share, compared to a 15 cents a share consensus estimate. Revenue also came in above Wall Street forecasts. G-III issued an upbeat full-year outlook as well, noting growth in sales of its sportswear and wear-to-work attire. Its shares rallied 5.8% in premarket trading.
4) Blackstone(BX),Carlyle Group(CG) – The two private-equity firms, along with Hellman & Friedman, agreed to buy medical supplies company Medline Industries for about $34 billion including debt, according to people familiar with the matter who spoke to The Wall Street Journal. That would be the largest leveraged buyout deal since the 2008 financial crisis. Separately, the Journal reports that Blackstone will announce a deal to buy data center operatorQTS Realty Trust(QTS) for $6.7 billion. QTS shares leaped 19.8% in the premarket.
5) “Meme” stocks – These stocks will remain in the spotlight, after wide swings last week for the likes ofAMC Entertainment(AMC),Bed Bath & Beyond(BBBY),GameStop(GME),BlackBerry(BB) andKoss Corp(KOSS). The biggest premarket moves came from BlackBerry, up 1.4% and Koss, down 2.7%.
6) Lordstown Motors(RIDE) – Lordstown Motors received a delinquency notice from Nasdaq due to a late filing for its quarterly report. The electric vehicle company said it does intend to file its form 10-Q as soon as possible.
7) Biogen(BIIB) – The drugmaker’s shares gained 2.2% in the premarket ahead of an expected ruling by the Food and Drug Administration on Biogen’s experimental Alzheimer’s treatment aducanumab. The drug would be the first major drug approved for Alzheimer’s, but some experts say there’s not enough evidence the treatment provides meaningful benefit.
8) Tesla(TSLA) – Teslahas canceled productionof its planned Tesla Model S Plaid+, a high-end version of the Model S with a projected range of 520 miles. The Tesla Model S Plaid – with a projected range of 390 miles – is set to be released next week.
9) Microsoft(MSFT) – Microsoft won approval from U.S. antitrust regulators for its $16 billion deal to buy artificial intelligence companyNuance Communications(NUAN). Microsoft said reviews are still taking place in other jurisdictions, but that it expected to close the deal by the end of 2021.
10) KKR(KKR) – KKR will buy airport services company Atlantic Aviation from current ownerMacquarie Infrastructure(MIC) for nearly $4.5 billion, seeking to benefit from growing demand for private jet services. KKR added 1.5% in premarket action.
11) Visa(V) – Visa was upgraded to “overweight” from “neutral” at Piper Sandler, which said it expected the payments network operator to benefit more from the vaccine-driven U.S. recovery than rivalMastercard(MA). Visa added 1.1% in the premarket.
12) Peloton(PTON) – The fitness equipment maker was rated “buy” in new coverage at Loop Capital, which notes a 40% drop from January highs and an expectation that the financial impact of the company’s treadmill recalls is likely overstated. Peloton rose 1.2% in premarket trading.