Here are five things you must know for Wednesday, June 3:
1. -- Stock Futures Extend Gains
Stock futures suggested Wall Street would continue its recent rally Wednesday as investors pinned their hopes on a quick recovery from the economic shutdown caused by the coronavirus pandemic.
Contracts linked to the Dow Jones Industrial Average rose 154 points, futures for the S&P 500 gained 11 points and Nasdaq futures were up 27 points.
Investors again were shaking off sometimes violent mass protests across the United States over police brutality and testy relations between Washington and Beijing that some fear could derail the trade agreement between the world's two largest economies.
On Tuesday, Wall Street extended gains for the third consecutive session. The S&P 500 rose 0.82% and the Dow Jones Industrial Average finished at 25,742, a gain of 267 points, or 1.05%.
“Despite several issues of importance - national riots, Chinese relations, an ongoing pandemic - the stock market is primarily focused on a single thing: the restart of U.S. and global economic activities,” Jim Paulsen, chief investment strategist at the Leuthold Group, told CNBC.
2. -- ADP Jobs Report, Campbell Soup Earnings Wednesday
The economic calendar Wednesday includes the ADP National Employment Report for May at 8:15 a.m. ET, the PMI Services Index for May at 9:45 a.m., the ISM Non-Manufacturing Index for May at 10 a.m., Factory Orders for April at 10 a.m. and Oil Inventories for the week ended May 29 at 10:30 a.m.
Earnings reports are expected Wednesday from Campbell Soup (CPB) - Get Report, American Eagle Outfitters (AEO) - Get Report, Canada Goose (GOOS) - Get Report, Cloudera (CLDR) - Get Report, Zuora (ZUO) - Get Report and Cinemark Holdings (CNK) - Get Report.
3. -- Warner Music IPO Priced at $25 a Share
Warner Music said Wednesday its initial public offering of 77 million shares was priced at $25 a share.
The offering was boosted from its previous 70 million shares.
The IPO was pushed off until Wednesday as the company supported "Blackout Tuesday," a show of solidarity from the music industry with protests against police brutality in the U.S. following the death of George Floyd, an unarmed black man.
Warner Music is the third-largest global music label.
The company isn’t planning to issue new shares in the IPO. Instead, two entities controlled by British billionaire Len Blavatnik are selling most of the shares. Blavatnik bought Warner Music in 2011.
The IPO raised $1.925 billion for shareholders. It values Warner Music at about $13 billion.
4. -- Zoom Video's Sales Rise 169% in First Quarter
Zoom Video ZM was higher in premarket trading Wednesday after the videoconferencing company, which has benefited greatly from stay-at-home orders during the coronavirus pandemic, blew away estimates for fiscal first quarter revenue and raised its sales outlook.
Zoom Video posted sales of $328.2 million in its fiscal first quarter, up 169% from a year earlier, and far ahead of analysts' expectations of $203.5 million. Earnings of 9 cents a share were in line with estimates.
“We were humbled by the accelerated adoption of the Zoom platform around the globe in Q1. The Covid-19 crisis has driven higher demand for distributed, face-to-face interactions and collaboration using Zoom. Use cases have grown rapidly as people integrated Zoom into their work, learning, and personal lives,” said Zoom CEO Eric S. Yuan.
For the fiscal year ending January 2021, Zoom guided for revenue of between $1.775 billion and $1.8 billion, compared to its initial guidance of between $905 million to $915 million. For the current quarter, Zoom expects revenue of $495 million and $500 million.
The company reported about 265,400 customers with more than 10 employees in the first quarter, up 354% year over year, and 769 customers contributing more than $100,000 in revenue, up about 90%.
The stock rose 1.34% in premarket trading to $210.86.
5. -- Google Sued for $5 Billion for Tracking in 'Private' Mode
Alphabet's (GOOGL) - Get Report Google was sued Tuesday in a proposed class action that accused the company of illegally invading privacy of millions by tracking their internet use from browsers set in "private" browsing mode.
The lawsuit seeks at least $5 billion, accusing Google of collecting information about what people view online and where they browse, despite their using what Google calls Incognito mode, reports said.
"Billions of times a day, Google causes computers around the world to report the real-time internet communications of hundreds of millions of people to Google," according to the complaint filed in U.S. District Court in San Jose.
“We strongly dispute these claims, and we will defend ourselves vigorously against them,” said Google spokesman Jose Castaneda. “Incognito mode in Chrome gives you the choice to browse the internet without your activity being saved to your browser or device. As we clearly state each time you open a new incognito tab, websites might be able to collect information about your browsing activity during your session.”