Coffee With Greta: Amazon Stock Split Takes Effect
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DJIA Futures: +282 (+0.9%)
SPX Futures: +47 (+1.2%)
NASDAQ Futures: +196 (+1.6%)
Good morning friends!
Futures are higher as traders look to bounce back from a losing week.
Let’s get right to it!
Amazon's Stock Split Takes Effect
Amazon (AMZN) shares are up 2% ahead of the open, as the company’s first stock split in 23 years takes effect.
The stock is trading around $125 after the 20-for-1 split went into effect after the close on Friday.
It’s the first time the share price has been in triple-digits since October 2017.
Amazon announced plans for the split in an SEC filing on March 9.
A company spokesperson said, “This split would give our employees more flexibility in how they manage their equity in Amazon and make the share price more accessible for people looking to invest in the company.”
Oil Jumps to $120 a Barrel
Oil prices are rising today after Saudi Arabia hiked its crude prices for July.
West Texas Intermediate crude and Brent crude futures are both up about 0.2% and hovering right around $120 bbl.
WTI hit a three-month high of $120.99 earlier this morning while Brent topped out at $121.95.
Saudi Arabia hiked the official selling price for its Arab light crude to Asia to $6.50 for July, up by $2.10 from June.
That’s the highest price since May.
Gas Price Record
The national average for a gallon of regular gas jumped sharply over the weekend.
AAA shows that price rose to $4.865 today.
That’s up more than 10 cents from just Friday.
A week ago the national average was $4.619/gal and it was $4.279/gal a month ago.
Georgia is still the state with the lowest average price at $4.292/gal.
The highest state average is in California which rose more than 3 cents overnight to $6.341/gal.
Inflation Week
It’s a relatively light week of economic data with traders focused on inflation.
The Bureau of Labor Statistics releases the May Consumer Price Index on Friday morning.
The market will be eyeing that report for more evidence that inflation has already peaked.
The headline CPI is expected to have risen 8.2% year over year with the Core CPI at 5.9%.
Both forecasts are a slowdown from April.
JetBlue Sweetens Spirit Takeover Offer
Spirit Airlines (SAVE) shares are rising 6% in premarket trade after JetBlue Airways (JBLU) sweetened its offer to buy the discount airline.
JBLU shares are up 1.4% ahead of the open.
JetBlue is now offering $31.50 per share in cash, up from its previous offer of $30 per share.
The improved offer includes $30 per share at the close of the deal and $1.50 paid as a cash dividend if shareholders vote for the JetBlue deal.
JetBlue also raised the reverse break-up fee to $350 million from $200 million.
That would be paid to shareholders if they approve the deal but it falls through due to regulatory reasons.
Spirit previously declined JetBlue’s offer, expressing doubt it would receive regulatory approval.
The company is also still in talks to merge with Frontier Group (ULCC).
DiDi Surges On Report Regulators Are Ending Investigations
DiDi Global (DIDI) shares are surging 66.5% ahead of the open after the Wall Street Journal reported that Chinese regulators are ending their investigations into the Chinese ride-hailing company.
Authorities are also reportedly planning to lift a ban on new users and will allow the Didi mobile apps back on domestic app stores.
Sources told the Wall Street Journal those changes could happen as early as this week.
Solar Companies Jump On White House Tariff Plan
Shares of solar equipment providers are rising in premarket trade after Reuters reported the White House is planning to announce a tariff exemption for solar panels.
President Biden is expected to declare a 24-month long exemption for solar panels from Cambodia, Malaysia, Thailand, and Vietnam today.
The move is meant to spur more solar panel production in the U.S.
SunRun (RUN) shares are up 13.9% ahead of the open, while SunPower (SPWR) is gaining 9.4%, and SolarEdge Technologies (SEDG) is up 6.3%.
Under Armour Replaced by Keurig Dr Pepper, ON Semiconductor on S&P 500
Under Armour (UAA) shares are flat after the athletic apparel company was removed from the S&P 500.
The stock was replaced by Keurig Dr Pepper (KDP) and ON Semiconductor (ON).
KDP shares are up 6.6% in premarket trade while ON shares are rising 6%.
VICI Properties (VICI) shares are also up 6.7% ahead of the open after the real estate investment trust was also added to the S&P 500.
In Case You Missed It
- Apple (AAPL) suffered a death cross on Friday. The stock’s 50-day moving average dropped to $159.09 while the 200-day moving average rose to $159.49. It was the first death cross for the tech giant since December 20, 2018. AAPL shares are 1.3% ahead of the open.