DJIA Futures: +417 (+1.4%)
SPX Futures: +58 (+1.6%)
NASDAQ Futures: +182 (+1.6%)
Good morning friends!
Futures are rebounding after the market suffered its worst week since 2020.
Let’s get right to it!
President Biden told reporters Monday he is strongly considering a federal gas tax holiday.
He said he could make a decision on that proposal by the end of this week.
The White House is aiming to do something to lower gas prices before the July 4 weekend.
But a gas tax holiday would require Congressional approval.
A gas tax holiday would eliminate some funding for the massive infrastructure law Biden signed last year.
The average U.S. gas price is continuing to cool after peaking last week.
AAA shows the national average for regular gas fell to $4.968/gal today, down from the record $5.016/gal a week ago.
Diesel prices also slipped today after peaking over the weekend.
The national average for slipped to $5.812/gal today from the record-high $5.816/gal on Sunday.
Oil prices are rising today as high summer demand weighs on tight supply issues.
West Texas Intermediate crude futures are up 2.5% at just under $111 bbl while Brent crude futures are up 1.8% at over $116 bbl.
Analysts say oil demand has remained solid despite recent concerns about economic growth.
Speaking at a Bloomberg event today, Tesla (TSLA) CEO Elon Musk clarified layoff plans at the automaker.
Musk said the company will layoff 10% of salaried workers in the next three months and simultaneously expand the number of hourly employees.
A leaked email to employees last week said he simply wanted to cut 10% of jobs because he had a “super bad feeling” about the economy.
The cuts will end up affecting about 3.5% of Tesla’s overall workforce.
Tesla shares are up 3% ahead of the open.
Kellogg (K) shares are jumping 6.6% in premarket trade after announcing plans to split into three independent companies.
Those will include a snacking, cereal, and plant-based company.
Kellogg’s CEO said, “These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities.”
The company expects the spinoffs to be complete by the end of 2023.
The current CEO will lead the snacking company and executives for the other two will be announced at later dates.
Spirit Airlines (SAVE) shares are rallying 8.4% ahead of the open after JetBlue (JBLU) upped its buyout offer for the discount airline.
JetBlue raised its offer to $33.50 a share from $31.50.
The new offer is an effort to push Spirit into accepting this offer over the Frontier (ULCC) merger.
Spirit has said it will decide between the two by the end of June.In Case You Missed It