Here are five things you must know for Thursday, June 20:
1. -- Stock Futures Jump as Fed Signals Lower Rates
U.S. stock futures rose sharply on Thursday and global stocks charged higher amid signals of lower interest rates from the Federal Reserve.
Fed Chairman Jerome Powell and his colleagues on the Federal Open Market Committee dropped a reference that they would be "patient" in monitoring incoming data in a statement Wednesday, following the central bank's decision to hold interest rates steady. The Fed instead said it would act "as appropriate" in order to sustain an economic expansion of nearly 10 years.
"Seven weeks ago we had a great jobs report and came out of the last meeting feeling that the economy and our policy was in a good place," Powell said in a press conference. "News about trade has been an important driver of sentiment in the interim."
"We are quite mindful of the risks to the outlook and are prepared to move and use our tools as needed," Powell said.
Contracts tied to the Dow Jones Industrial Average were up 225 points, futures for the S&P 500 rose 27 points, and Nasdaq futures jumped 97.75 points.
Benchmark 10-year U.S. Treasury note yields traded at 2.011%, while two-year notes slipped to 1.716% as investors priced in multiple rate cuts from the Fed between now and the end of the year.
Oil prices rose sharply Thursday after the United States confirmed a naval surveillance drone was shot down over the Strait of Hormuz by an Iranian missile. Brent crude was up 2.31% to $63.25 a barrel, while West Texas Intermediate crude rose 2.91% to $55.54 a barrel.
The economic calendar in the U.S. on Thursday includes weekly Jobless Claims at 8:30 a.m. ET, and the Philadelphia Fed Business Outlook Survey for June at 8:30 a.m.
2. -- Oracle Rises on Earnings Beat and Outlook
Oracle (ORCL - Get Report) rose 6% to $55.84 in premarket trading Thursday after the enterprise software company topped analysts' earnings and revenue expectations for its fiscal fourth quarter, and said first-quarter profit likely would top forecasts.
Adjusted earnings in the fourth quarter were $1.19 a share on revenue of $11.14 billion. Analysts were expecting earnings of $1.07 a share on revenue of $10.93 billion.
The company's cloud services and license support segment accounted for 61% of its revenue, bringing in $6.79 billion in the period, higher than forecasts of $6.76 billion.
"In Q4, we saw a surge in database license sales. We also saw very rapid growth in sales of those database options required to run our autonomous database," chairman Larry Ellision told investors on a conference call late Wednesday. "We continue to gain overall database market share as we migrate our database users to the cloud."
Oracle CEO Safra Catz said first-quarter earnings would be 80 cents to 82 cents a share, excluding certain items, vs. Wall Street forecasts of 80 cents.
3. -- Slack's Reference Price for Direct Listing Set at $26
The reference price for Slack Technologies' direct public offering Thursday was set at $26 by the New York Stock Exchange.
The workplace messaging platform's DPO bypasses the traditional underwriting process.
The reference price isn't an offering price, according to the NYSE. Slack's opening price will be determined by the stock's designated market maker based on buy and sell orders collected by the exchange from broker dealers.
Slack will trade under symbol " (WORK) ."
Slack reportedly is expecting a valuation as high as $17 billion in the direct listing, a substantial increase over its most recent private valuation of $7 billion around 10 months ago, according to TheStreet's Annie Gaus.
In a season of many attention-grabbing IPOs, Slack's financial picture draws comparisons to Zoom (ZM) , another highly valued enterprise communications company. Zoom, which began trading publicly in April, has risen 60% since its IPO and have jumped 25% since it posted robust revenue growth and a small profit in its first earnings report on June 6.
Don't anticipate a similar trajectory for Slack, however, according to Duckju Kang of the personal finance site ValueChampion.
4. -- Deutsche Bank Faces U.S. Money Laundering Probe - Report
The Times said federal authorities were looking into how the bank handled reports of suspicious activity in certain accounts, some of which are allegedly linked to President Donald Trump's son-in-law Jared Kushner. The Times also reported last month that Deutsche Bank management prevented staff from reporting the concerns to U.S. authorities, with one employee claiming she was fired for red-flagging the moves in and out of accounts tied to the now-defunct Trump Foundation.
Earlier this month, Senate lawmakers Chris Van Hollen and Sherrod Brown wrote to the Federal Reserve and urged it to investigate Deutsche Bank's relationship with both Kushner and the president. House Democrats also have subpoenaed the bank for financial records linked to Trump, his family and his businesses.
The Times report marks a fresh setback for Deutsche Bank, Europe's biggest and most systemically important lender, which had seen solid gains over the past few sessions following reports it was prepared to create a "bad bank" to house underperforming assets and isolate its deposit base.
5. -- Waymo Partners With Renault and Nissan for Robotaxis in France, Japan
After launching its ride-hailing service in France and Japan, Waymo intends to explore other European and Asian markets with Renault and Nissan.
"This is an ideal opportunity for Waymo to bring our autonomous technology to a global stage," said John Krafcik, CEO of the self-driving car company.
Waymo, Renault and Nissan didn't set a timetable for when their ride-hailing service will launch, while also leaving other details vague.
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