Coffee With Greta: Short Week Begins
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DJIA Futures: -113 (-0.3%)
SPX Futures: -13 (-0.3%)
NASDAQ Futures: -33 (-0.2%)
Good morning friends!
Futures are slipping as the holiday-shortened week of trading begins.
Let’s get right to it!
New Home Construction Surges
New home construction surged unexpectedly in May as builders face strong demand from buyers.
The Census Bureau reported housing starts jumped 21.7% to a seasonally adjusted annual rate of 1.63 million units.
That beat expectations for starts to decline 0.8%.
Single-family starts were up 18.5% while multi-family starts surged 28.1%.
The building boom is expected to continue as new permits issued also jumped.
Permits rose 5.2% to a seasonally adjusted annual rate of 1.49 million units.
Single-family permits rose 4.8% while multi-family permits jumped 7.8%.
The data comes after homebuilder confidence jumped more than expected this month.
The National Association of Homebuilders’ sentiment index rose five points to 55.
It was the sixth consecutive monthly increase and the first reading over 50 in 11 months.
Sentiment about current sales conditions rose five points to 61, six-month sales expectations increased six points to 62, and buyer traffic increased four points to 37.
Alibaba Falls Amid Executive Changes
Alibaba (BABA) shares are down 2.1% ahead of the open after announcing CEO Daniel Zhang is stepping down.
Zhang will be succeeded by Alibaba co-founder Eddie Wu as CEO.
Current executive vice chairman Joe Tsai will also takeover Zhang’s position as chairman.
Zhang will lead Alibaba’s Cloud Intelligence Group as chairman and CEO starting September 10.
The moves are part of the company’s plan to split into six business groups.
Dice Therapeutics Surges On Eli Lilly Acquisition
Dice Therapeutics (DICE) shares are surging in premarket trade after Eli Lilly (LLY) announced it will acquire the company.
Lilly plans to pay $48 per share or about $2.1 billion in cash for the company.
The acquisition is aimed at advancing innovation in immunology.
Lilly’s executive vice president said, “In combination with its novel technology and expertise in drug discovery, DICE's talented workforce and passion for innovation will enhance our efforts to make life better for people living with devastating autoimmune diseases.”
The deal has been approved by both companies boards of directors and is expected to close in Q3.
