Here are five things you must know for Tuesday, June 23:
1. -- Stock Futures Rise as Trump Says China Trade Deal 'Intact'
Stock futures rose Tuesday after President Donald Trump said the U.S.-China trade agreement was "fully intact" following comments from a senior advisor that the accord was "over."
White House trade advisor Peter Navarro said the trade agreement between Washington and Beijing "continues in place," reversing comments he made earlier in an interview with Fox News in which he said "it's over" with regard to the pact.
Navarro said his comments were "taken wildly out of context."
“They had nothing at all to do with the Phase I trade deal, which continues in place. I was simply speaking to the lack of trust we now have of the Chinese Communist Party after they lied about the origins of the China virus and foisted a pandemic upon the world,” Navarro said.
Trump confirmed in a tweet that the U.S.-China trade pact, reached in January, remains "fully intact."
“The China Trade Deal is fully intact. Hopefully they will continue to live up to the terms of the Agreement!” Trump said on Twitter.
Contracts linked to the Dow Jones Industrial Average rose 265 points, futures for the S&P 500 gained 27 points and Nasdaq futures were up 73 points.
Stocks finished higher Monday as Wall Street balanced belief in an economic recovery against a rise in the number of new U.S. coronavirus cases.
2. -- New Home Sales, La-Z-Boy Earnings for Tuesday
The economic calendar Tuesday includes the PMI Composite Flash for June at 9:45 a.m. ET and New Home Sales for May at 10 a.m.
3. -- Boeing Asks Spirit Aero to Again Slash Production for 737 MAX
Spirit Aerosystems (SPR) - Get Report was tumbling after the company warned it could breach financial covenants under its credit agreement late this year following another directive from Boeing (BA) - Get Report to reduce its production plan for the 737 MAX.
The stock fell 6.06% to $25.56 in premarket trading after Boeing, for the third time this year, told Spirit Aerosystems to scale back production of parts for the troubled jet. Boeing rose .07% to $190.54.
Boeing told Spirit Aerosystems it needs fuselages for just 37 jets during the rest of 2020, dropping Spirit’s expected annual deliveries to 72 shipsets from 125. Thirty-five shipsets already have been delivered to Boeing.
"The B737 MAX grounding coupled with the Covid-19 pandemic is a challenging, dynamic and evolving situation for Spirit," the company said in a regulatory filing.
"Given the substantial production plan reduction, Spirit could breach the financial covenants under its credit agreement in the fourth quarter of 2020 without an amendment or waiver," Spirit Aerosystems said, adding that it was in contact with its lenders and “intends to work with them expeditiously to obtain appropriate relief.”
4. -- Starbucks Chooses Beyond Meat Rival for U.S. Breakfast Sandwich
The giant coffee chain said the Impossible sausage, egg and cheddar sandwich was now available at a majority of its roughly 15,000 U.S. restaurants.
Beyond Meat reached a partnership earlier this year to have its products in Starbucks locations in China. Beyond Meat and Starbucks also have a deal in Canada.
“Starbucks works with a variety of suppliers around the globe,” a spokeswoman told Bloomberg when asked why the company chose Impossible Foods as its U.S. supplier.
5. -- Apple Ditches Intel Chips in Macs
Apple (AAPL) - Get Report officially announced at its Worldwide Developers Conference on Monday that it was ditching Intel (INTC) - Get Report chips in favor of its own custom-built processors for Macs in a move that CEO Tim Cook described as "historic."
The new chip architecture will deliver better performance and allow developers to more easily build apps that work across the whole ecosystem of Apple devices, the tech giant said.
“Every time we’ve done this, the Mac has come out stronger and more capable,” said Cook at Apple's all-virtual keynote on Monday, referring to the adoption of new chip standards in Macs over time.
Apple rose 1.15% to $363 in premarket trading, while Intel was up 0.28% to $60.26.
Analysts expect that switching to custom-built chips will give Apple more control over its product releases, and potentially boost its margins over time.
Apple also introduced iOS14, the latest operating system for Apple's iPhone that includes newly customizable home screen layouts; greater control of the size, frequency and location of widgets; and enhancements to messages.