BY THE NUMBERS
Dow futures were pointing to a gain at Wednesday's open, one day after the Dow Jones Industrial Average soared more than 500 points, or 2%, on a record retail sales jump, positive trial results of a potential coronavirus treatment and hopes of more economic stimulus. A higher close for the Dow on Wednesday would extend its winning streak to four straight sessions since Thursday's nearly 7% plunge. (CNBC)
Federal Reserve Chairman Jerome Powell testifies virtually to Capitol Hill again Wednesday, delivering his semiannual monetary policy report to a House committee at noon ET. On Tuesday, he told senators that central bankers would adjust corporate bond buying based on market conditions and that "significant uncertainty remains about the timing and strength of the recovery." (CNBC)
Homebuyer mortgage demand spiked to an 11-year high as rates hit another record low. Purchase applications rose 4% last week and were 21% higher than last year, according to the Mortgage Bankers Association. Refis rose 10% last week and were 106% higher than a year ago. (CNBC)
In another look at the real estate market, the government is out with May housing starts at 8:30 a.m. ET. Economists expect a 22.3% bounce following April's 30.2% decline to a five-year low. Homebuilding in April fell in all four regions due to coronavirus disruptions to building material supply chains. (CNBC)
Cruise stocks fell in premarket trading after Norwegian Cruise Line (NCLH) announced that it was suspending almost all voyages through the end of September, extending its cancellations by two months. Shares of Norwegian dropped more than 8%, while Carnival (CCL) and Royal Caribbean (RCL) both slipped about 4%. (CNBC)
IN THE NEWS TODAY
More than 60% of commercial flights in and out of Beijing have been canceled as the Chinese capital looks to contain a new coronavirus cluster. Beijing had said it more or less eradicated local transmission. However, in recent days, there have been 137 cases in the city of 20 million people, leading officials to close schools, suspend reopenings and implement stronger requirements for social distancing. (AP)
* Morgan Stanley says a second wave of coronavirus won't derail Asia's economic recovery (CNBC)
China's strong response to new infections contrasts with what some states in the U.S. are willing to endure to reopen their economy. Texas, among the states experiencing spikes since relaxing controls, reported 2,622 new cases of Covid-19 on Tuesday, another daily high for the state. Gov. Greg Abbott blamed the increase on people not wearing masks and not social distancing. (CNBC)
Millions of health-care workers across the U.S. are going to work without paid sick leave during the coronavirus pandemic, a study published Wednesday found. The analysis by the Kaiser Family Foundation estimated that 17.7 million health workers are exempt from the emergency paid sick leave requirement in the Families First Coronavirus Response Act passed in March. (CNBC)
Target (TGT) is raising its minimum wage to $15 per hour and will give all hourly employees a one-time bonus of $200. The $2 per hour raise will apply to employees at stores and distribution centers, beginning July 5. Target had temporarily raised its wages by $2 an hour in March as coronavirus cases rose. (CNBC)
* Recalled to work? You can still collect unemployment benefits, and that extra $600 a week (CNBC)
* Amazon is testing a wearable device that lights up and beeps when warehouse workers get too close (CNBC)
* Health start-up Tempus, backed by Groupon co-founder, joins fight against Covid-19 (CNBC)
Apple (AAPL) will reopen 10 stores in New York City this week for the first time since they closed in March in response to the Covid-19 pandemic. The 10 city stores will be open "by appointment." Apple did not say which day this week the stores will open but added that specific hours and dates will be posted to the company's website. (CNBC)
Apple diversity chief Christie Smith has left the company, according to people familiar with the matter who spoke to Bloomberg. The move comes amid Apple's launch of a $100 million Racial Equity and Justice Initiative. Smith had joined Apple in 2017 after 16 years at consulting firm Deloitte.
Two Black former Pinterest (PINS) employees went public with claims of discrimination and retaliation during their time at the company that ended last month. Ifeoma Ozoma and Aerica Shimizu Banks, who had worked on Pinterest's public policy team, said their attempts to achieve fair compensation were rebuffed and they experienced retaliation after retaining outside counsel. (CNBC)
* Morgan Stanley's ex-diversity chief Marilyn Booker sues bank over alleged racial bias (CNBC)
South Carolina's Tim Scott, the only Black Republican senator, and a task force of other GOP senators are set to introduce legislation Wednesday to overhaul police procedures and accountability. The 106-page bill is not as sweeping as a Democratic proposal, but it shows how swiftly the national debate has been transformed since last month's death George Floyd at the hands of police and subsequent protests. (AP)
* McDonald's 'probably' created more Black millionaires than any other company, CEO says (CNBC)
* Aunt Jemima brand will change name, remove image that Quaker says is 'based on a racial stereotype' (NBC News)
Facebook (FB) CEO Mark Zuckerberg announced the social network will allow its users to turn off seeing political ads. "For those of you who've already made up your minds and just want the election to be over, we hear you," Zuckerberg wrote in an op-ed published on USA Today. "We'll still remind you to vote."
* Justice Department to propose limiting internet firms' protections (WSJ)
STOCKS TO WATCH
Oracle (ORCL) reported quarterly profit of $1.20 per share, 5 cents a share above estimates. The business software giant's revenue came in below forecasts as key customers in markets like retail and hospitality postponed spending amid the Covid-19 pandemic.
Southwest Airlines (LUV) will limit ticket sales to two-thirds of capacity through Sept. 30, to ensure that middle seats remain empty. Separately, Southwest said in a Securities and Exchange Commission filing that it sees June operating revenue down 70% to 75% from a year ago, better than prior guidance of an 80% to 85% decline.
United Air Lines (UAL) sweetened a voluntary buyout offer for flight attendants, according to a document seen by Reuters. United said that while thousands of employees signed up for the buyout, the number was "not enough."
Tesla (TSLA) signed a new three-year pricing deal with Japan's Panasonic, involving the manufacture and supply of automobile batteries at Tesla's Nevada Gigafactory.
Groupon (GRPN) lost $1.63 per share for its latest quarter, smaller than the loss of $1.91 per share that analysts were anticipating. The company's revenue also beat estimates, despite the impact of the coronavirus pandemic. Groupon said its goods unit has picked up momentum during the pandemic.
H&R Block (HRB) earned $3.01 per share for its fiscal fourth quarter, beating estimates by 40 cents a share. The tax preparation firm's revenue beat estimates as well. The numbers were down from a year ago due to the delay in this year's federal tax filing deadline.
DraftKings (DKNG) announced a 33 million share offering, after the online gambling company's stock more than doubled since its April debut. The company itself will sell and receive proceeds from 14 million shares, while current investors will sell the rest.
Tempur Sealy (TPX) said quarter-to-date orders have significantly improved from prior expectations, and it now estimates that quarterly net sales will be down only 15% compared to a year ago. The numbers have benefited from a jump of more than 125% in e-commerce sales.
WATERCOOLER
The U.S. Open tennis tournament will take place as scheduled but with no fans. However, top players including Novak Djokovic and Rafael Nadal have publicly expressed their concerns. With New York being the epicenter of the pandemic in the U.S., temporary hospitals were set up at the Flushing facility. (CNBC)
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June 17, 2020 at 07:30PM
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What to watch today: Dow looks to extend winning streak to four sessions - CNBC
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