Tesla, Intel, Broadcom, Shutterfly and China Tariffs – 5 Things You Must Know
Here are five things you must know for Tuesday, June 11:
1. – Stock Futures points to a sixth straight day of profit
U.S. Stock futures rose on Tuesday, pointing to a sixth straight day of gain for Wall Street, despite Donald Trump saying he was ready to make additional fees on China if a trade deal was not reached at the G20 summit later this month.
The president told CNBC on Monday that he would raise tariffs on China if his Chinese counterpart, President Xi Jinping, did not attend the G20 meeting. All indications are that Xi will be at the summit in Japan.
China for its part said it would react firmly if the United States insist on escalating trade tensions.
"China will not fight a trade war, but we are not afraid to fight a trade war," said Chinese Foreign Ministry spokesman Geng Shuang.
The spokesman would not be drawn to confirm an Xi-Trump meeting on the G-20, saying the information would be released when it was available to the Ministry, Reuters reported.
Dow-Related Contracts Jones Industrial Average rose 1[ads1]16 points, S&P 500 futures were up 13.30 points and Nasdaq futures gained 48 points.
The United States economic calendar on Tuesday includes the May 8:30 ET producer price index.
Earnings Reports are waited Tuesday from Dave & Buster's Entertainment Menu (PLAY – Get Report) and H & R Block (HRB – Get Report).
2. – Tesla Hopping in Front of Annual Meeting
Tesla (TSLA – Get Report) increased by 5.4% to $ 215.52 in premar trading trading ahead of the electric car manufacturer's annual shareholder meeting.
Stocks skipped 4% Monday after Baird analyst Ben Kallo said he believes sold by Tesla shares before the rally last week was overblown.
Kallo also said that he expects positive news from Tesla at the annual meeting. The company maintained its $ 340 price on the stock.
"Weak demand remains at the forefront of a bear argument, and while model S + X appears to be in demand, we continue to believe that model 3 demand is undervalued," Kallo wrote. "Positive updates over the past few weeks, including leaked emails and strong delivery reports, seem to have improved the sense of demand that we are looking forward to."
CEO Elon Musk will head Tesla's annual meeting Tuesday in Mountain View, California. 5:30 pm ET.
"After what has been a brutal six months for Tesla and its shareholders, we expect Tuesday to be a positive event as Musk and the Tesla team show the progress they have made so far on production and new model designs (model Y at the dock) next year) to further catalyze demand while highlighting some of the challenges they expect to navigate, says Wedbush Daniel Ives.
3. Shutterfly (SFLY – Get Report), the digital imaging company, reached an agreement that was acquired by Apollo Global Management (APO – Get Report) for $ 1.74 billion. [Shutterflyaccountfor$174billion
19659004] Shutterfly will be purchased for $ 51 per share in cash, a premium of about 1.5% to Shutterflys closing price on Monday at $ 50.25 The stock fell by 2.2% to $ 50.01 in premark trading on Tuesday.
"We are looking forward to working closely with Apollo as we continue to build a compelling service. whether to make deeper and more personal relationships with our customers, and to promote our digital and production capacity to support sustainable growth, says William Lansing, Shutterfly's Chairman of the Board.
Apollo will also buy Snapfish, which it plans to combine with Shutterfly to create a larger player in online photo services, according to The Wall Street Journal. 19659004] The acquisition of Snapfish, which, as the parent of District Photo, is held close, will be conditional on the Shutterfly acquisition. District Photo will have a significant minority share in the combined company, a person familiar with the case told the journal.
On Monday, Shutterfly announced it was named Ryan O & # 39; Hara President and CEO, which was effective June 24. Hara earned more than four years as CEO of Move Inc.
4. Intel acquires network startup Barefoot Networks
Intel (INTC – Get Report) will purchase startup Barefoot Networks as it appears to compete with Broadcom (AVGO – Get Report) in cloud computing.
Intel called Barefoot Networks "emerging leader in Ethernet switch silicon and data center software", and said the deal will support Intel's focus on "end-to-end cloud networking and infrastructure leadership, and will allow Intel to continue to delivering new workloads, experiences and opportunities for our data center customers. "
Intel is the largest chip maker in the United States, but it does not make chips that control communication via Ethernet, a site dominated by Broadcom.
Intel's acquisition of Barefoot Networks is expected to close in the third quarter.
Intel increased by 2.4% to $ 47.13 in premarket trading.
Meanwhile, Broadcom jumped 2.6% to $ 282 after reaching a two-year deal to deliver Apple (AAPL – Get Report) with radio frequency components for smartphones, tablets, and smartwatches.
5. – House puts great technique to the test
Tuesday, the judicial committee will begin its investigation of the market dominance of the technology sector's biggest name, starting with a look at the impact of companies' news content platforms, media and the spread of misinformation on the web, The Associated Press reported .
The committee last week uncovered a sweeping "top to bottom" review of non-named technology companies, the first congressional probe, which reports a dual effort by the Ministry of Justice and the Federal Trade Commission to tackle the perceived dominance and potential abuse of tech giants like Apple, Facebook (FB – Get Report), Alphabet (GOOGL – Get Report) and Amazon (AMZN – Get Report).
"These are monopolies," rep says. David Cicilline on "Fox News Sunday."
Cicilline, a Rhode Island Democrat, will lead Tuesday's subcommittee hearing and said the panel will examine the breadth of the digital market and the "dominee NCE of major technology platforms," with a view to legislative action to increase competition.
"We know the problems; they are easy to diagnose," says Cicilline. "Creating the solutions will be more difficult."
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