Here are five things you must know for Monday, June 24:
1. -- Stock Futures Rise on Hopes for a Breakthrough in U.S.-China Trade Talks
U.S. stock futures were higher on Monday, following a third consecutive weekly gain for the three major Wall Street benchmarks, as investors looked to the upcoming G-20 summit in Osaka, Japan, for a breakthrough in U.S.-China trade talks.
China's state-run Xinhua news agency confirmed for the first time Sunday that President Xi Jinping will attend the two-day summit, which begins Friday, and is expected to meet with his counterpart Donald Trump for the first time since trade talks broke down in early May and after the U.S. increased tariffs on China-made imports.
China's vice commerce minister, Wang Shouwen, told reporters in Beijing that it was important for both sides "to have to compromise and make concessions," adding he hopes the U.S. can "remove certain unilateral measures inappropriately taken against Chinese companies in the spirit of free trade and the World Trade Organization."
Contracts tied to the Dow Jones Industrial Average rose 52 points, futures for the S&P 500 gained 6.65 points, and Nasdaq futures were up 24.75 points. The Dow gained 2.41% last week, the S&P 500 rose 2.2%, and the Nasdaq added 3%.
The economic calendar in the U.S. for Monday includes the Chicago Fed National Activity Index for May at 8:30 a.m. ET, and the Dallas Fed Manufacturing Survey for June at 10:30 a.m.
Cal-Maine Foods (CALM - Get Report) is scheduled to report earnings on Monday. Reports are expected later in the week from Micron Technology (MU - Get Report) , FedEx (FDX - Get Report) , Lennar (LEN - Get Report) , General Mills (GIS - Get Report) , Nike (NKE - Get Report) , Walgreens Boots Alliance (WBA - Get Report) , ConAgra Brands (CAG - Get Report) and Constellation Brands (STZ - Get Report) .
2. -- Eldorado Resorts and Caesars Reach Merger Agreement
Eldorado will pay $12.75 a share for Caesars in a deal that will see the combined company split 51% to 49% between the two shareholder groups. Once debt for both companies is included, the deal will have an enterprise value of $17.3 billion. The merger will create the biggest U.S. gaming company.
Caesars Entertainment has received pressure from activist investor Carl Icahn, who boosted his stake in the company to 17.75% earlier this year and has pushed for either a sale or a merger of the casino company.
"Eldorado's combination with Caesars will create the largest owner and operator of U.S. gaming assets and is a strategically, financially and operationally compelling opportunity that brings immediate and long-term value to stakeholders of both companies," said Eldorado Resorts CEO Tom Reeg. "Together, we will have an extremely powerful suite of iconic gaming and entertainment brands, as well as valuable strategic alliances with industry leaders in sports betting and online gaming."
Caesars was jumping 16.62% in premarket trading Monday to $11.65.
3. -- FedEx Mishandles Another Huawei Package
FedEx said an "operational error" prevented the shipping of a Huawei phone from Britain to the United States, where it was supposed to arrive at the offices of PC Magazine for a product review. China's Foreign Ministry said FedEx needed to explain why the shipment was intercepted. The Global Times newspaper said officials were considering adding FedEx to a government list of so-called unreliable entities that could keep it from doing business in China, where FedEx generates about 7% of its global revenue.
"The package in question was mistakenly returned to the shipper, and we apologize for this operational error," FedEx said in a statement reported by Reuters.
FedEx last month issued a similar apology for mishandling packages destined for Huawei amid accusations that it deliberately diverted four parcels addressed to the Chinese tech giant's offices in Asia.
FedEx shares fell 0.82% in premarket trading Monday to $164.
4. -- Daimler Falls After Issuing Profit Warning Linked to Emissions
Germany's Daimler (DMLRY) , the maker of Mercedes-Benz vehicles, issued a surprise 2019 profit warning linked to the increased cost of meeting European and global emissions standards.
Daimler said it now sees second-quarter earnings of about the same levels as a year earlier, down from a previous forecast of a modest advance, and expects full-year profit "in the magnitude of the previous year."
The profit warning followed an announcement over the weekend that Daimler will be recalling 60,000 diesel-powered Mercedes vehicles after German regulators found them to be fitted with software that could distort emissions tests.
"Increase of provisions for various ongoing governmental proceedings and measures relating to Diesel vehicles by a high three digit million amount will affect Daimler's second quarter 2019 earnings and be taken into account in the Group EBIT," the carmaker said in a brief statement published on its website. "Relevant for the reassessment is an increase in expected expenses in connection with various ongoing governmental proceedings and measures with regard to Mercedes-Benz diesel vehicles."
Daimler shares fell 4.2% in trading in Frankfurt on Monday.
5. -- 'Toy Story 4' Tops Weekend Box Office but Fails to Beat Expectations
Pixar's "Toy Story 4" had a $118 million opening weekend but its box office take came in below expectations.
The movie's opening, according to studio estimates, ranks as the fourth-highest animated film opening ever, not accounting for inflation.
Save 57% with our July 4 Sale. Join Jim Cramer's Action Alerts PLUS investment club to become a smarter investor! Click here to sign up!