Here are five things you must know for Monday, June 29:
1. -- Stock Futures Waver as Virus Infections Top 10 Million
Stock futures fluctuated Monday following Friday's steep selloff as coronavirus cases surpassed 10 million people globally and the hardest-hit states such as Texas and Florida pulled back on reopening plans.
Contracts linked to the Dow Jones Industrial Average rose 91 points, futures for the S&P 500 were rising 6 points and Nasdaq futures fell 20 points.
On Friday, the Dow slumped 730 points, or 2.84%, to 25,015, the S&P 500 dropped 2.42% and the Nasdaq Composite sank 2.59% as worries grew that portions of the economy could be shuttered amid a resurgence of the virus.
Even with a surge in infections, there are signs that both the U.S. and global economies have been modestly improving.
“Conflicting signals between the Covid-19 spread and economic data continue to keep risk sentiment, and consequently markets, in a gridlock going into the end of June,” said Jingyi Pan of IG. “As far as the weekend leads are concerned, however, the topping of the 10 million mark for global Covid-19 cases had tipped the scale in the direction of risk-off for markets going into Monday.”
2. -- Coronavirus - The Latest
The number of confirmed global cases of the coronavirus has risen to 10,147,906, according to the Johns Hopkins Center for Systems Science and Engineering, and deaths increased to 502,048.
The U.S. has 2,549,028 cases of the coronavirus, the most in the world, according to Johns Hopkins. Deaths in the U.S. have risen to 125,803, also the most in the world.
The U.S. had 42,000 cases Saturday, marking the second straight day that the daily total was above 40,000.
The positive Covid-19 test rate surged to 14.31% in Texas, the highest for the state since the pandemic began, Bloomberg reported, citing state health department figures. The number has almost tripled since May 31, when Texas posted a positive-test rate of 5.44%.
California has required that bars be closed in seven counties, including Los Angeles, and the state has recommended they be closed in eight others.
Floria Gov. Ron DeSantis said people in the 18-to-44 age group accounted for most of the rise in positive virus tests.
“For these younger groups, they need to be thinking about who they’re coming into contact with who may be in the more vulnerable groups,” said DeSantis at a news conference Sunday. “If it spreads to the folks who are more elderly, that’s going to result in negative outcomes.”
3. -- Chesapeake Energy Files for Bankruptcy
Chesapeake Energy (CHK) filed for Chapter 11 bankruptcy in the Southern District of Texas.
"We are fundamentally resetting Chesapeake's capital structure and business to address our legacy financial weaknesses and capitalize on our substantial operational strengths," said CEO Doug Lawler, adding the shale oil and gas producer would come out of the bankruptcy "stronger."
Chesapeake intends to use the bankruptcy proceedings to cut around $7 billion in debt, shore up its balance sheet and restructure its legacy contractual obligations to build a "sustainable" business. Chesapeake said it operate as ordinary during the Chapter 11 process.
The move comes amid a tough time for energy companies who have struggled to cope with a plunge this year in U.S. crude prices.
4. -- Test Flights for Boeing's 737 MAX Could Begin This Week
Boeing was rising 3.45% to $175.88 in premarket trading as reports said the planemaker could begin certification testing for its grounded 737 MAX as soon as this week.
Tests for the MAX could start as early as Monday, according to The Wall Street Journal, which said the goal of the effort would be to return the jet to service by the end of 2020. Reuters reported that Boeing would hold the test with Federal Aviation Administration officials.
"We continue to work diligently on safely returning the 737 MAX to commercial service," a Boeing spokesman, Bernard Choi, told TheStreet in an email on Sunday. But Choi declined to confirm or deny any planned tests, saying, "We defer to the FAA and global regulators on the process."
Boeing's 737 MAX has been grounded since March 2019 following crashes in Indonesia and Ethiopia that killed 346 people.
5. -- Home Sales, Micron Earnings on Monday's Calendar
The economic calendar Monday includes the pending home sales index for May at 10 a.m. The most important datapoint of any month - the nonfarm payrolls report - will be released on Thursday. Economists expect the U.S. to have added about 3 million jobs during June.
Also on the calendar are minutes from the Federal Reserve's June 9-10 meeting, manufacturing data and factory orders. Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin will testify Tuesday before the House Financial Services Committee.
Earnings reports are expected Monday from Micron Technology (MU) and Herman Miller (MLHR) . Later in the week, reports will be issued by FedEx (FDX) , Conagra Brands (CAG) , Macy's (M) , Constellation Brands (STZ) and General Mills (GIS) .