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Stock market news live updates: Stock futures steady amid unrest, US-China tensions – Yahoo Style

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Stocks were slightly positive Monday, steadying against a backdrop of protracted protests in some of the nation’s largest cities, many of which had already been struggling to reopen amid the coronavirus outbreak.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="[Click here to read what’s moving markets heading into Tuesday, June 2]” data-reactid=”17″>[Click here to read what’s moving markets heading into Tuesday, June 2]

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Market participants also eyed tensions between the U.S. and China, after Bloomberg and Reuters reported China had ordered some state-run agricultural companies to halt purchases of American farm goods.” data-reactid=”18″>Market participants also eyed tensions between the U.S. and China, after Bloomberg and Reuters reported China had ordered some state-run agricultural companies to halt purchases of American farm goods.

This came after President Donald Trump on Friday said his administration would take action to respond to China’s crackdown on Hong Kong, including removing Hong Kong’s preferential trade status with the U.S. and requesting a working group study Chinese companies listed on U.S. stock exchanges for potential unfair financial practices.

The protests over the past several days centered on constituents’ outrage over the death of George Floyd, who was killed by police in Minneapolis last week in one of the latest public instances of police brutality against an unarmed black man.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Demonstrations since erupted in dozens of cities across the nation, accompanied by looting and destruction of some retail stores and other large and small businesses. The escalation of these protests led governors in two dozen states including Minnesota, California, Illinois and Washington to activate the National Guard, along with mayors in some cities to impose curfews.” data-reactid=”21″>Demonstrations since erupted in dozens of cities across the nation, accompanied by looting and destruction of some retail stores and other large and small businesses. The escalation of these protests led governors in two dozen states including Minnesota, California, Illinois and Washington to activate the National Guard, along with mayors in some cities to impose curfews.

“Mass gatherings could spark concerns about a second wave of the virus. We’ll let the medical experts handle this debate, but will weigh in on why this matters for stocks,” Lori Calvasina, head of U.S. equity strategy for RBC Capital Markets, said in a note Monday. “It bears on how quickly the US economy can get back to something resembling normal. Second wave fears could halt reopening or keep behavior cautious.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="A number of major companies temporarily changed operations as they assessed the violence that ensued in recent days. Target (TGT) which is headquartered in Minneapolis and has 73 stores in Minnesota, closed or adjusted hours at 200 stores this weekend. Meanwhile, tech giant Amazon (AMZN) shifted delivery routes in some cities due to the protests, Amazon confirmed in an email to Yahoo Finance after a Bloomberg report, and Apple (AAPL) reportedly extended store closures of some of its outlets.” data-reactid=”23″>A number of major companies temporarily changed operations as they assessed the violence that ensued in recent days. Target (TGT) which is headquartered in Minneapolis and has 73 stores in Minnesota, closed or adjusted hours at 200 stores this weekend. Meanwhile, tech giant Amazon (AMZN) shifted delivery routes in some cities due to the protests, Amazon confirmed in an email to Yahoo Finance after a Bloomberg report, and Apple (AAPL) reportedly extended store closures of some of its outlets.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="A number of other corporate executives – including BlackRock CEO Larry Fink, Goldman Sachs CEO David Solomon, Citi CFO Mark Mason and Apple CEO Tim Cook – also issued public remarks on the protests and the events that spurred them.” data-reactid=”24″>A number of other corporate executives – including BlackRock CEO Larry Fink, Goldman Sachs CEO David Solomon, Citi CFO Mark Mason and Apple CEO Tim Cook – also issued public remarks on the protests and the events that spurred them.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="These developments coincided with a historic downturn in the U.S. economy, rendering tens of millions of Americans jobless as the coronavirus pandemic and measures to contain it swept the country and world. Though many states and cities across the U.S. have begun to undergo a phased reopening process, many economists expect domestic data to hold at very low levels for now. The Labor Department’s May jobs report set for release later this week is expected to show the unemployment rate jump to a record high of 19.6%,&nbsp;the highest based on monthly&nbsp;Bureau of Labor Statistics (BLS) data spanning back to 1948.&nbsp;” data-reactid=”25″>These developments coincided with a historic downturn in the U.S. economy, rendering tens of millions of Americans jobless as the coronavirus pandemic and measures to contain it swept the country and world. Though many states and cities across the U.S. have begun to undergo a phased reopening process, many economists expect domestic data to hold at very low levels for now. The Labor Department’s May jobs report set for release later this week is expected to show the unemployment rate jump to a record high of 19.6%, the highest based on monthly Bureau of Labor Statistics (BLS) data spanning back to 1948

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="4:04 p.m. ET: Stocks rise in first session of June, stabilizing amid protests and US-China tensions” data-reactid=”27″>4:04 p.m. ET: Stocks rise in first session of June, stabilizing amid protests and US-China tensions

Here were the main moves in markets as of 4:04 p.m. ET:

  • S&P 500 (^GSPC): +11.42 (+0.38%) to 3,055.73

  • Dow (^DJI): +91.91 (+0.36%) to 25,475.02

  • Nasdaq (^IXIC): +62.18 (+0.66%) to 9,552.05

  • Crude (CL=F): +$0.06 (+0.17%) to $35.55 a barrel

  • Gold (GC=F): -$1.20 (-0.07%) to $1,750.50 per ounce

  • 10-year Treasury (^TNX): +1.4 bps to yield 0.6620%

2:44 p.m. ET: US crude oil prices tick down 0.1%, or 5 cents, to $35.44 per barrel

Futures for U.S. West Texas intermediate edged down 0.1%, or 5 cents, to $35.44 per barrel Monday. The commodity held onto May’s gains, which sent prices up more than 80% for the month as states’ reopenings stoked hopes of a rebound in energy demand.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Earlier in the session Monday, multiple media outlets reported that OPEC and Russia were weighing extensions of oil output cuts, which would help ease months-long concerns of a global supply glut.” data-reactid=”39″>Earlier in the session Monday, multiple media outlets reported that OPEC and Russia were weighing extensions of oil output cuts, which would help ease months-long concerns of a global supply glut.

12:45 p.m. ET: New York Governor Andrew Cuomo considers curfew for NYC amid unrest

New York Governor Andrew Cuomo said during his daily coronavirus briefing Monday he is weighing a possible curfew in New York City following unrest, lootings and vandalism of stores over the weekend.

“Something has to get done because last night was not acceptable,” he said during the briefing.

Separately, New York state reported a daily death toll of 54 on May 31 from the coronavirus, or the lowest level so far in the period after the virus’s peak. Overall, new cases of the coronavirus in New York state fell below 1,000 for the first time in 11 weeks.

10:13 a.m. ET: Stocks turn positive, led by Financials

The three major indices turned positive Monday morning after opening slightly lower. The Financials and Consumer Discretionary sectors led gains in the S&P 500, while Boeing, American Express and Goldman Sachs led advances in the Dow.

Here’s where the three major indices were trading as of 10:13 a.m. ET:

  • S&P 500 (^GSPC): +5.23 points (+0.17%) to 3,049.54

  • Dow (^DJI): +57.14 points (+0.23%) to 25,440.25

  • Nasdaq (^IXIC): +26.33 points (+0.28%) to 9,518.12

10:03 a.m. ET: Construction spending falls 2.9% April, or less than expected

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Construction spending in the U.S. declined by 2.9% in April over the prior month, the Census Bureau said in its monthly report. This was a less drastic decline than expected, with consensus economists bracing for a 7.0% drop in construction spending for the month.” data-reactid=”59″>Construction spending in the U.S. declined by 2.9% in April over the prior month, the Census Bureau said in its monthly report. This was a less drastic decline than expected, with consensus economists bracing for a 7.0% drop in construction spending for the month.

March’s construction spending was revised to unchanged from a 0.9% gain previously reported.

By category, private construction spending declined 3.0% in April, comprising a 4.5% drop in residential construction spending and a 1.3% drop in nonresidential spending. Government construction spending fell 2.5% in April.

10:00 a.m. ET: ISM Manufacturing PMI ticks up less than expected in May

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The Institute for Supply Management’s manufacturing purchasing managers’ index (PMI) rose to 43.1 in May, but missed consensus estimates for 43.8. However, the reading stabilized slightly from April’s 11-year low of 41.5.” data-reactid=”64″>The Institute for Supply Management’s manufacturing purchasing managers’ index (PMI) rose to 43.1 in May, but missed consensus estimates for 43.8. However, the reading stabilized slightly from April’s 11-year low of 41.5.

Subindices tracking new orders, prices paid and employment each rose marginally from April’s low levels. All of these were still in contractionary territory, or below the neutral level of 50.0.

“The coronavirus pandemic impacted all manufacturing sectors for the third straight month. May appears to be a transition month, as many panelists and their suppliers returned to work late in the month,” Timothy Fiore, Chair of the Institue for Supply Management, said in a statement. “However, demand remains uncertain, likely impacting inventories, customer inventories, employment, imports and backlog of orders.”

9:45 a.m. ET: Decline in U.S. manufacturing activity suggests ‘any recovery will be frustratingly slow’: IHS Markit

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="U.S. manufacturing activity held in deeply contractionary territory in May, according to IHS Markit’s final monthly purchasing managers’ index. The manufacturing PMI registered at 39.8 in the final print, matching the advance print. This followed a reading of 36.1 in April.” data-reactid=”69″>U.S. manufacturing activity held in deeply contractionary territory in May, according to IHS Markit’s final monthly purchasing managers’ index. The manufacturing PMI registered at 39.8 in the final print, matching the advance print. This followed a reading of 36.1 in April.

Readings below the neutral level of 50.0 indicate contraction in a sector.

“Manufacturing remained in a deep downturn in May, as measures taken to contain the spread of COVID-19 continued to cause production losses, disrupt supply chains and hit demand,” Chris Williamson, chief business economist at IHS Markit, said in a statement. “Job losses meanwhile continued to run at one of the highest rates in over a decade, and pricing power has collapsed.”

“There remains a high risk that any recovery will be frustratingly slow as ongoing social distancing measures, high unemployment, job insecurity and damaged balance sheets constrain consumer and business spending,” he added. “The recovery will of course also fade quickly if virus infections start to rise again. For now, however, we focus on the good news that we may be past the worst in terms of the economic decline.”

9:31 a.m. ET: Stocks open mostly lower

Here were the main moves in markets, as of 9:31 a.m. ET:

  • S&P 500 (^GSPC): -9.27 points (-0.3%) to 3,035.04

  • Dow (^DJI): -98.94 points (-0.39%) to 25,284.17

  • Nasdaq (^IXIC): -4.89 points (-0.03%) to 9,485.95

  • Crude (CL=F): -$0.92 (-2.59%) to $34.57 a barrel

  • Gold (GC=F): -$5.90 (-0.43%) to $1,745.80 per ounce

  • 10-year Treasury (^TNX): +3.5 bps to yield 0.679%

7:23 a.m. ET Monday: Stock futures mixed

Here were the main moves in markets, as of 7:23 a.m. ET:

  • S&P 500 futures (ES=F): 3,044.00, up 2 points (+0.07%)

  • Dow futures (YM=F): 25,422.00, up 44 points (+0.17%)

  • Nasdaq futures (NQ=F): 9,540.5, down 19.75 points (-0.21%)

  • Crude (CL=F): -$0.99 (-2.94%) to $32.72 a barrel

  • Gold (GC=F): -$8.20 (-0.47%) to $1,743.50 per ounce

  • 10-year Treasury (^TNX): +2 bps to yield 0.664%

6:04 p.m. ET Sunday: Stock futures open lower

Here were the main moves at the start of the overnight session for U.S. equity futures, as of 6:04 p.m. ET:

  • S&P 500 futures (ES=F): 3,017.75, down 24.25 points (-0.8%)

  • Dow futures (YM=F): 25,378.00, down 79 points (-0.31%)

  • Nasdaq futures (NQ=F): 9,476.00, down 84.25 points (-0.88%)

Protesters completely surround a line of police officers during nationwide unrest following the death in Minneapolis police custody of George Floyd, in Raleigh, North Carolina, U.S. May 30, 2020. Picture taken May 30, 2020. REUTERS/Jonathan Drake
Protesters completely surround a line of police officers during nationwide unrest following the death in Minneapolis police custody of George Floyd, in Raleigh, North Carolina, U.S. May 30, 2020. Picture taken May 30, 2020. REUTERS/Jonathan Drake

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US June Jobs Rise Above-Forecast 4.8 Million; Claims Elevated – BNN

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The rebound in the U.S. labor market accelerated in June as the economy reopened more broadly, before a pickup in coronavirus cases that puts additional gains in jeopardy.

Payrolls rose by 4.8 million in June after an upwardly revised 2.7 million gain in the prior month, according to a Labor Department report Thursday. The unemployment rate fell for a second month, by 2.2 percentage points to 11.1 per cent, still far above the pre-pandemic half-century low of 3.5 per cent.

The June jobs report reflects a snapshot of mid-month conditions after a flurry of rehiring — particularly at restaurants and retailers — but before reopenings screeched to a halt amid rising virus cases around the country. That could slow or stall the rate of improvement in the labor market, with implications for President Donald Trump’s reelection chances, as well as for the extension of a U.S. stock-market rally following the best quarter since 1998.

U.S. stocks opened higher following the data. Treasuries and the dollar were lower.

A separate report from the Labor Department showed initial applications for unemployment insurance in regular state programs fell by less than expected, to 1.43 million, in the week ended June 27. Continuing claims — or claims for ongoing unemployment benefits in state programs — rose slightly to 19.3 million in the week ended June 20.

Economists had forecast payrolls to rise by 3.23 million — the median in a range of 500,000 to 9 million — and an unemployment rate of 12.5 per cent.

“We’re still coming off extremely high levels of unemployment, but every step counts,” said Jennifer Lee, senior economist at BMO Capital Markets.

What Bloomberg’s Economists Say

“The upward surprise in the June jobs report demonstrates that economic fundamentals remain strong enough to facilitate a relatively robust recovery once COVID-19 is under control. However, in the near term, the positive signal somewhat fades given the recent sharp acceleration in new virus cases and the looming income cliff stemming from the expiration of augmented unemployment benefits this month.”

— Yelena Shulyatyeva, Andrew Husby and Eliza Winger

The Labor Department’s Bureau of Labor Statistics has largely fixed a problem that resulted in respondents being misclassified as employed when they should have been labeled as unemployed. Adjusted for the errors, the June unemployment rate would have been about 1 percentage point higher than reported — or 12.3 per cent, compared with an adjusted 16.4 per cent in May. “The degree of misclassification declined considerably in June,” BLS said.

A resurgence in virus cases has complicated the picture, leading states across the country to reverse or halt reopening efforts in hopes to slow the spread. That’s already led some rehired workers to get laid off once more. Paired with the coming expiration of the federal government’s extra US$600 in weekly unemployment benefits, the economy could take another hit in the months ahead.

In addition, the weekly figures show the number of Americans claiming jobless benefits remains extremely elevated, posting the first increase in state programs in four weeks.

Embedded Image

The increase in payrolls was led by leisure and hospitality and retail, illustrating the effect of the easing of business restrictions. Health care also saw increases as doctors’ and dentists’ offices reopened.

It’s a “little more disconcerting that we’re not seeing broad-based gains across industries,” BMO’s Lee said.

State government payrolls fell by another 25,000 — the fourth straight decline — as budget situations grew more dire amid falling tax revenues.

Key Numbers

Unemployment among minorities and women remained worse than among White Americans and men. The Black unemployment rate fell to 15.4 per cent from 16.8 per cent, while it declined to 10.1 per cent from 12.4 per cent among White Americans. Hispanic unemployment dropped to 14.5 per cent from 17.6 per cent.

Meanwhile, the household survey showed more than 2.8 million Americans permanently lost their job in June, a 588,000 increase from a month earlier that was the biggest since the start of 2009. While the total number is the highest in six years, the figure bears watching for more systemic damage to the labor market caused by the pandemic.

Average hourly earnings fell 1.2 per cent from the prior month, reflecting job gains among lower-paid workers, following a 1 per cent drop in May. Wages were up 5 per cent from the year before, as employment in lower-paid sectors remains well below year-earlier levels.

The average workweek fell to 34.5 hours from 34.7 hours in May.

The U-6 rate, also known as the underemployment rate, also fell to 18 per cent in a sign of positive momentum for the economy. Unlike the headline unemployment rate, also known as the U-3 rate, it accounts for those who quit looking for a job because they were discouraged about their prospects and those working part-time but desiring a full workweek.

A mass of Americans left the labor force after economic shutdowns led to widespread layoffs, but those people have started to come back. The labor force participation rate, or the proportion of the working-age population that is either working or actively looking for work, rose to 61.5 per cent from 60.8 per cent the prior month, though that’s the still far shy of where it was in February — at 63.4 per cent.

The increase in participation reflected a rise of 1.7 million people in the labor force.

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Investors make Tesla most valuable car company in the world despite being outsold by Toyota 25-1 – CBC.ca

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Tesla Inc. became the most valuable car company in the world on Wednesday, a day before the electric car maker posted better-than-expected sales numbers.

Tesla announced that it delivered 90,650 vehicles during the quarter, better than the 74,130 vehicles that analysts who cover the company were forecasting.

That’s a decline of about five per cent from the number of cars it sold in the same period a year ago, but investors were impressed with the number because it’s less bad than the rest of the industry. New data on Thursday showed U.S. car sales in June were about 27 per cent below what they were in the same month last year.

Investors bid up Tesla share price to $1,218 a share before markets opened Thursday. That’s an increase of nine per cent.

It was enough to make Tesla the most valuable car company in the world, with the total value of all its shares on the Nasdaq, a figure known as market capitalization, adding up to $207 billion.

That’s more than any other car company and more than Toyota’s $203 billion, which was the previous highest value.

Toyota sold 8,958,423 cars worldwide last year. That’s almost 25 times the 367,500 cars Tesla said it cranked out in 2019. But Wall Street investors have decided Tesla is the better stock to buy.

Tesla’s current stock price values the company at more than GM, Chrysler and Ford combined, despite those three U.S. automakers also selling far more cars than Tesla does every year.

Regardless of the apparent disconnect between expectations and reality, some in the investment community think the stock has even more room to grow.

Chaim Siegel of Elazar Advisors expects the company’s stock price to rise to $1,545 US in the next year.

“If they are able to accelerate profitability in a quarter missing so many production days, imagine a normal quarter levering more fixed costs,” he said in a note to clients. “Profitability will be even better.”

Analyst Daniel Ives of Wedbush Securities called Tesla’s performance a “major home run” considering the backdrop of COVID-19. “In our opinion, a 90K delivery number in this COVID lockdown environment is a jaw-dropper,” Ives said. 

He has a price target of $1,250 on the shares, but his most optimistic scenario forecasts the stock at $2,000 US apiece.

Tesla may soon join S&P 500

While a lot of the excitement over Tesla is built on nothing more than hype, the company does have one fundamental factor going for it that is likely to add to the buying. Tesla isn’t a member of the influential S&P 500 collection of stocks.

But analysts expect S&P may soon have to include Tesla because it meets the requirements.

“Stringing together profitable quarters increases their chance for inclusion into the S&P 500,” Siegel said. “That would force many large funds to have to buy.”

Earlier this week in an internal email, CEO Elon Musk called on employees to work hard to allow Tesla to break even in the quarter despite the coronavirus crisis.

“While our main factory in Fremont was shut down for much of the quarter, we have successfully ramped production back to prior levels,” the automaker said in a statement.

During the period from April to June, most of the United States was under government-imposed stay-at-home orders to combat the spread of the virus, which impacted production and caused a plunge in auto sales.

The lockdown resulted in the shutdown of production at Tesla’s only U.S. vehicle factory in California for more than six weeks from the end of March to early May.

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Environment Canada issues heat warning for Montreal and Laval regions – CTV News Montreal

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MONTREAL —
Environment Canada has issued a heat warning for Montreal and the region with warm, humid air settling over the area.

“The combined values of temperature and humidity will give humidex values that will reach 40,” Environment Canada says.

The heat is expected hit the Montreal, Laval, Longueuil and Chateauguay areas and taper off in the evening as precipitation arrives.

During a heat wave, residents are reminded to drink plenty of water and stay in a cool area.

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