New quarter, Dow futures drop 200 points, reopening plays down premarket

spike

The front facade of the New York Stock Exchange (NYSE) is seen in New York City, New York, U.S., June 26, 2020.

Brendan McDermid | Reuters

This is a live blog. Please check back for updates. 

7:52 am: Senate passes extension for PPP

The Senate agreed to extend the Paycheck Protection Program through Aug. 8 just hours before the program was set to expire. About $660 billion has been approved for use in the program, with about $130 billion remaining. Sen. Marco Rubio, the Florida Republican who is chairman of the Small Business Committee, said on Twitter that “what we really need to pass very soon is targeted help for those who need a second round of aid.” —Pound, Associated Press

7:51 am: ADP expected to show 2.5 million private payrolls added in June

Economists expect the ADP private sector jobs report to show 2.5 million payrolls were added in June. The 8:15 a.m. ET report is viewed as a preview of sorts for the government’s employment report, which is due Thursday morning. The government report is expected to show that 2.9 million jobs were created in June, up from the 2.5 million in May, according to Dow Jones. The ADP number does not correlate with government data many times. For May, ADP showed a decline of 2.76 million jobs.  Economists had expected a substantial 8 million decline in May payrolls, and were surprised by the gain. — Domm

7:50 am: FedEx shares jump after earnings beat, JPMorgan upgrade

Shares of FedEx jumped more than 11% during premarket trading after the company’s fourth quarter results beat analyst estimates on the top and bottom line as consumers flocked online amid the pandemic. Separately, JPMorgan upgraded shares to an overweight rating, based on the company’s ability to hike prices.

CNBC PRO subscribers can read more about the firm’s bull case here. – Stevens

7:35 am: New quarter, Dow futures sink 200 points 

In the first trading day of the third quarter, U.S. equity futures ticked lower and pointed to losses at the open on Wednesday. Dow futures dropped about 220 points, or 0.9%. S&P 500 futures fell 0.6% and Nasdaq-100 futures slid 0.4%. 

On Tuesday, the Dow climbed 217 points, or 0.85%, to close out the best quarter for stocks in decades. The S&P rallied 1.54% and the Nasdaq Composite closed up 1.9%. — Fitzgerald

— with reporting from CNBC’s Patti Domm. 

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.

Source Article

Next Post

Macy's, United, FedEx, Boeing, Facebook & more

Take a look at some of the biggest movers in the premarket: Macy’s (M) – The retailer reported a first-quarter loss of $2.03 per share, with the loss and its revenue matching the numbers it gave in a preliminary report on June 9. Macy’s is expecting the pandemic to impact […]