Jun 302020

The coronavirus remains the market focus and Fed Chair Jerome Powell’s warning that the US economy may stall if the spread of COVID-19 is not contained has futures cautious overnight.

Powell, along with Treasury Sec. Steven Mnuchin testify before the House Financial Services Committee @ 12:30 pm ET said in a prepared statement “The path forward for the economy is extraordinarily uncertain and will depend in large part on our success in containing the virus…  A full recovery is unlikely until people are confident that it is safe to re-engage in a broad range of activities.”

Uber Technologies (UBER) has made a $2.6B offer for Postmates.  The acquisition would boost Uber’s Uber Eat food delivery service which has seen a large rise in demand since the coronavirus.

Oil companies are looking to write down the value of their assets.  Royal Dutch Shell (RDS.A) is looking at a $15B to $22B write down and BP had warned of a $17.5B write down.

Micron Technologies is up nearly 6% premarket after solid earnings from rising memory demand from cloud based companies.

Earnings include FDX, CAG, AYI, and SCS.

The economic calendar focus on this last day of the quarter is Chicago PMI @ 9:45am ET and CB Consumer Confidence @ 10:00 am ET.  The calendar also includes S&P/CS Composite-20 HPI @ 9:00am ET.

Fed speakers abound.  In addition to Jerome Powell, Williams speaks @ 11:00am ET, Brainard speaks @ 11:05am ET, and Kashkari speaks @ 2:00pm ET.

Volatility remains steady and elevated.

Size bias is bearish into the US session open.




 Posted by at 7:39 am

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