Acquisition of Virgin Galactic, Didi and Lionheart: what to watch for when the stock market opens today
The earnings season is expected to kick off this week, starting with the big banks, and investors will be watching to see if they can meet high expectations. Here’s what we’re watching ahead of Monday’s opening.
- Futures contracts linked to the S&P 500 were flat after the broad index hit a record high on Friday. Futures linked to the Nasdaq-100 rose 0.5%, suggesting further gains in tech stocks after the Nasdaq Composite ended last week at a record high. Futures contracts on the Dow Jones Industrial Average slipped 0.3%. Read our full market overview.
What is coming
- Earnings are due by Simulations Plus SLP 0.81%
after the closing bell.
Market movers to watch out for
- Investors were able to watch Richard Branson float weightless with the curve of the earth as a backdrop over the weekend and seem to like what they saw. Galactic Virgo SPCE -14.62%
shares rose 2% pre-market after the billionaire entrepreneur beat rivals Jeff Bezos and Elon Musk in the race for CEOs to the sky – or did he? Mr Bezos’ planned flight with his own Blue Origin is expected to take him over the Karman Line, a barrier many see as the limit of space, while Mr Branson has only crossed the lower barrier. defined by the FAA. And Blue Origin last week dismissed the Virgin vehicle as a “high altitude aircraft.”
- But then Mr. Musk has more earthly matters to deal with as well. TSLA Tesla 3.49%
The CEO is expected to appear in a trial on Monday to defend the merits of the approximately $ 2.1 billion merger between Tesla and SolarCity. Investors don’t seem fazed: shares in the electric car maker added 1% pre-market.
- Chinese carpooling giant Didi Global DIDI -5.36%
S shares slipped 2.7% pre-market, prolonging their post-IPO slump that began after the company was targeted by Chinese regulators. It said on Monday that some of its apps in China, such as those used by drivers, would be phased out, which could negatively impact its revenue.
- Lionheart Acquisition LCAP Blank Check Company Shares 1.01%
were up 0.6% in pre-market. MSP Recovery is expected to be made public after the company, which specializes in Medicare secondary payor recovery rights, on Monday announced a deal to be acquired by PSPC as part of a deal that would value the combined company at around 32, $ 6 billion.
- Shares of ToughBuilt Industries TBLT -31.73%
didn’t look so hard this morning. The company with a market cap of around $ 86 million is down 29% pre-market, slashing Friday’s 46% jump. Today’s move comes after the company announced a $ 40 million stock offering.
- Vaccinations continue at a brisk pace and many large economies are taking steps towards normalcy, but investors are still reporting anxiety as the highly contagious Delta variety of Covid-19 continues to spread. Pandemic-sensitive stocks like cruise lines, airlines and oil companies were all down before commercialization. United Airlines UAL -1.14%
slipped 1.4%, Delta Air Lines DAL 0.15%
lost 0.8%, CCL Carnival -2.10%
fell 1.4%, Occidental Petroleum OXY -0.74%
fell 1.5% and ConocoPhillips COP -0.72%
- In the first week of the third quarter, $ 18.3 billion was poured into bond funds tracked by EPFR, a 22-week high.
- Big bank stocks are trading at around 50% of the S&P 500 futures price / earnings multiple, up from a historic median of 75%, according to Autonomous Research analysts.
- On this day in 1773, Jonathan’s Coffee House, where brokers met for decades to smoke, drink, and trade stocks and bonds, was renamed the London Stock Exchange.
Card of the day
Goldman Sachs GS 2.72%
and other big banks are expected to post big gains in the second quarter this week, although business ventures that have thrived during the pandemic are slowing and demand for loans has been lukewarm.
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