Bitcoin, June jobs, Zoom earnings and Powell remarks top week ahead
Stock and bond markets are closed on Memorial Day
Can consumers keep carrying this economy?
Veritas Financial managing partner Greg Branch, Michael Lee of Michael Lee Strategy and Advisors Capital Management partner JoAnne Feeney provide insight into today’s markets, inflation fears, earnings, the Federal Reserve and cryptocurrencies.
Financial markets are closed on Monday, in observance of the Memorial Day holiday, but the busy week will ramp up as investors get a wave of economic data including ADP employment, non-farm payrolls and the Beige Book, as well as another batch of key earnings.
One of the biggest cryptocurrency events of the year, the 2021 Bitcoin conference, will also take the spotlight later this week.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 41794.6 | -257.59 | -0.61% |
| SP500 | S&P 500 | 5712.69 | -16.11 | -0.28% |
| I:COMP | NASDAQ COMPOSITE INDEX | 18179.984429 | -59.93 | -0.33% |
This as the Dow Jones Industrial Average and S&P 500 sit near record highs. The Nasdaq Composite slightly below its high.
FOX Business takes a look at the upcoming events that are likely to move financial markets in the coming days.
Monday 5/31
Even with the Memorial Day holiday, it is the deadline for the small businesses to apply for the latest round of the Paycheck Protection Program funding.
According to the Small Business Administration data as of May 23, more than $795 billion has been allocated to through over 11.6 billion loans since the rescue fund's inception in March 2020. Just a fraction of the $292 billion that Congress allocated to the rescue fund this year is left – most of which is reserved for financial lenders that serve underserved communities.
Businesses with fewer than 500 employees could receive as much as $10 million through the program and are required to spend at least 60% of the money on maintaining payroll in order for the government to forgive the full loan. The remaining 40% could be spent on operating costs such as mortgages, rent and utilities. Only businesses with 300 employees or fewer were eligible to receive a second loan, which was capped at $2 million.
Tuesday 6/1
Kicking off the week's earnings on Tuesday is Hewlett-Packard Enterprise and Zoom Video Communications. The initial public offering for SoFi Technologies is also set to begin trading on the New York Stock Exchange under the ticker symbol SOFI.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HPE | HEWLETT PACKARD ENTERPRISE CO. | 20.01 | -0.05 | -0.25% |
| ZM | ZOOM VIDEO COMMUNICATIONS INC. | 75.54 | -0.06 | -0.08% |
Economic data to watch on Tuesday includes the ISM manufacturing PMI, construction spending, and vehicle sales.
President Joe Biden speaks about the COVID-19 relief package in the State Dining Room of the White House, Monday, March 15, 2021, in Washington. (AP Photo/Patrick Semansky)
Tuesday also marks 100 years since the Tulsa Race Massacre. The White House confirmed that President Biden will visit the city to commemorate the anniversary, meeting with massacre survivors who range in age from 101 to 107. Biden will also make a stop at the Greenwood Cultural Center. Additional details about the trip have not been released.
In 1921, a white mob attacked a predominantly Black neighborhood in Tulsa dubbed "Black Wall Street", where businesses were destroyed and hundreds of people were killed. A 2001 state commission report found that the destruction led to $1.8 million in riot-related claims against the city, or $27 million today.
Wednesday 6/2
Earnings continue midweek with Advance Auto Parts and Lands’ End before market open on Wednesday, while Endeavor Group Holdings, NetApp, and PVH report after the bell.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAP | ADVANCE AUTO PARTS INC. | 37.45 | +1.20 | +3.31% |
| LE | LANDS END | 16.08 | -0.01 | -0.06% |
| EDR | ENDEAVOR GROUP | 28.99 | -0.50 | -1.70% |
| NTAP | NETAPP INC. | 115.45 | -0.65 | -0.56% |
| PVH | PVH CORP. | 100.38 | +1.92 | +1.95% |
Investors will also pay close attention to the Beige Book, which will provide the latest analysis on U.S. economic conditions as COVID-19 related restrictions ease.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TOL | TOLL BROTHERS INC. | 147.80 | +1.30 | +0.89% |
Another stock to watch on Wednesday will be Toll Brothers, which will host a virtual analyst and investor day. The luxury home builder 's event will feature presentations from executives including Chairman and CEO Douglas Yearley.
Thursday 6/3
Thursday will be the busiest day for the markets as a slew of companies are set to report earnings, including JM Smucker, Broadcom, Lululemon and Slack Technologies.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SJM | THE J. M. SMUCKER CO. | 113.69 | +0.77 | +0.68% |
| AVGO | BROADCOM INC. | 168.55 | -0.37 | -0.22% |
| LULU | LULULEMON ATHLETICA INC. | 318.13 | -3.04 | -0.95% |
| WORK | NO DATA AVAILABLE | - | - | - |
The ADP's national employment index will be Thursday's main event, a precursor for Friday's monthly jobs report. Investors will also watch challenger layoffs, initial and continuing jobless claims, the ISM non-manufacturing PMI, and the Energy Information Administration's weekly crude stocks.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NVDA | NVIDIA CORP. | 136.05 | +0.65 | +0.48% |
NVIDIA will also be a stock to watch as shareholders vote on a 4-for-1 stock split to increase the number of authorized shares of common stock to 4 billion.
If approval is obtained, each NVIDIA stockholder of record at the close of business on June 21 will receive a dividend of three additional shares of common stock for every share held on the record date, to be distributed after the close of trading on July 19. Trading is expected to begin on a stock split-adjusted basis on July 20.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NIO | NIO INC. | 5.14 | +0.04 | +0.78% |
In automotive news, Kia will begin taking reservations for its EV6 crossover vehicle. Chinese automaker Nio will also hold an extraordinary general meeting as the company looks to increase the diversity on its board.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BITQ | BITWISE CRYPTO INDUSTRY INNOVATORS ETF - USD DIS | 14.23 | -0.48 | -3.26% |
| COIN | COINBASE GLOBAL INC. | 186.27 | +3.39 | +1.85% |
Cryptocurrencies will also dominate market headlines on Thursday as the 2021 Bitcoin conference kicks off in Miami. The event, which runs through Saturday, will include appearances by Twitter CEO Jack Dorsey, MicroStrategy CEO Michael Saylor, venture capitalist Chamath Palihapitiya, celebrity skateboarder Tony Hawk, and cryptologist and legal scholar Nick Szabo.
Friday 6/4
The week will end on a high note with the June jobs report after last month's surprise addition of just 266,000 jobs, below the more than 900K expected, and an uptick in the unemployment rate to 6.1%.
JUNE JOBS REPORT
Economists expect employers added 674,000 positions last month with the unemployment rate falling to 5.9%.
Other economic reports to watch include durable goods and factory orders.
Elsewhere, Treasury Secretary Janet Yellen will make her first overseas trip to London where she will attend the G7 finance meeting, which will run from Friday to Saturday.
According to the Treasury, Yellen will use the trip to "reinforce the U.S. commitment to policy priorities to promote the global recovery from the COVID-19 pandemic including supportive fiscal policies, vaccine access, and distribution."
Meanwhile, Federal Reserve chairman Jerome Powell will participate in a panel before the Bank for International Settlements' virtual "Green Swan Conference: Coordinating Finance on Climate."