Stock market futures jumped on Monday as Chinese stocks rose leading investors to continue hoping a revival from a coronavirus-led downturn, plus stocks to watch today in the Money & Markets Opening Bell.
The Top Story
While the Independence Day weekend saw a record increase in new coronavirus infections, with Florida surpassing the highest daily tally reported by any European country, a jump in the Chinese stock market fueled futures higher.
Stocks rose 5% in China on Monday, boosted by liquidity, cheap funding and expectations of a faster bounce in business activity than other major countries battling the virus.
But a surge in virus cases has cast a shadow over the stock market rally as some states have scaled back their reopening plans, threatening to curtail the economic recovery.
Encouraging U.S. economic data, including record job additions, helped the Nasdaq end at an all-time high closing last week and moved the S&P 500 and Dow Jones to within 8% and 13% of their respective peaks from February.
Later this morning, the Institute for Supply Management’s non-manufacturing activity index is expected to rise to 50.1 in June from 45.5 in May.
As of 9:20 a.m., Dow Jones futures were up 1.4%. S&P 500 futures jumped 1.25% and Nasdaq futures moved 1.18% higher.
Stocks to Watch Today
Nio Inc. (NYSE: NIO) — The Chinese electric car company continued to rise on the back of its recent quarterly earnings. The company reported delivering 10,331 vehicles in the second quarter — a 191% increase year over year. Shares of Nio were up more than 21%.
Berkshire Hathaway Inc. (NYSE: BRK.B) — Shares of the multinational holding company jumped 2.5% after it announced a $10 billion acquisition of Dominion Energy Inc.’s (NYSE: D) natural gas assets (see below for more).
Tesla Inc. (Nasdaq: TSLA) — Bearish analysts at JPMorgan & Chase Co. (NYSE: JPM) got a little less bearish by raising its price target on the American automaker to $295 per share. Shares of Tesla were up 5.5% in premarket trading.
Uber, Postmates Agree on $2.65 Billion Acquisition
Uber Technologies Inc. (NYSE: UBER) is buying food-delivery app Postmates in a $2.65 billion all-stock agreement.
Postmates accounted for 8% of the U.S. meal delivery market in May, according to CNBC.
The deal comes just a week after it was reported that Postmates was exploring plans for an initial public offering. Postmates was last valued at $2.4 billion when it raised $225 million in private fundraising last September.
The deal could be officially announced as early as today.
Apollo Global Launches Big Loan Platform
Apollo Global Management Inc. (NYSE: APO) is launching a $12 billion credit operation aimed at giving companies loans of around $1 billion.
According to The Wall Street Journal, Abu Dhabi state fund Mubadala Investment Co. is the chief backer and Apollo will augment that with more backing from additional investors.
The new operation will be direct lending, meaning the loan will be kept on the books and not syndicated out to other investors.
Buffett, Berkshire Have Found a New Deal
It’s been a while since Warren Buffett and his conglomerate Berkshire Hathaway Inc. (NYSE: BRK.B) have jumped on a deal.
That changed this weekend when the company announced an agreement to buy Dominion Energy Inc.’s (NYSE: D) natural gas pipeline and storage assets for $10 billion.
According to Bloomberg, that is an indication that Buffett may be willing to keep finding deals, for the right price just after exercising caution about mergers and acquisitions because of the coronavirus pandemic.
What We’re Reading
Warning: These 4 Dividends (Up to 7.8%) Are Traps Set to Spring (Money & Markets)
The Bull Market Is Back for Chinese Stocks (CNN Business)
7 Tickers Revealed for Mega Trend Stocks to Buy Now (Money & Markets)
Earnings Report
Here are the companies releasing earnings reports today:
Remark Holdings Inc. (Nasdaq: MARK)
Check back each morning before the market opens for stocks to watch today with the Opening Bell, here on Money & Markets.