Updated from 7:48 a.m. ET, Tuesday, June 20.
Stock futures were mixed on Tuesday, June 20, as crude oil plunged to new lows for the year.
S&P 500 futuresfell 0.04%, Dow Jones Industrial Average futures lost 0.05%, and Nasdaq futures added 0.03%.
Wall Street began the week with big gains on Monday, June 19, as a rebound in tech names pushed the Dow Jones Industrial Average and S&P 500 to reach new all-time closing records. Tech stocks rebounded on Monday in a reversal from a selloff early last week. Apple Inc. (AAPL) drove the Dow higher, while Amazon Inc. (AMZN) struck a new intraday record.
Monday's record was the Dow's second in a row. The blue-chip index has hovered at all-time highs in recent weeks following an upbeat first-quarter earnings season and heading into the Federal Reserve's decision earlier in June to hike interest rates. The Dow and S&P 500 were on track to secure all-new highs by market close.
Crude oil prices were were sharply lower as worries over global oversupply continued. Weekly domestic inventories data from the American Petroleum Institute will be released Tuesday afternoon, while official data from the Energy Information Administration is set for Wednesday, June 21. Declines in U.S. inventories in the previous week were not as steep as anticipated, setting off sharp selloffs last week.
West Texas Intermediate crude was down 2% to $43.34 a barrel on Tuesday.
Further steps have to be taken to prevent a future housing crisis, Federal Reserve Vice Chairman Stanley Fischer said at a conference in Amsterdam earlier Tuesday. Fischer said that since the 2007-2009 financial crisis in the U.S., "the core of the financial system is much stronger, the worst lending practices have been curtailed, much progress has been made in processes to reduce unnecessary foreclosures." But to prevent a new crisis, Fischer said that governments should do more, including stress tests for banks on their resilience should house prices decline dramatically, and making it easier to avoid foreclosures, Reuters reported.
Boston Fed President Eric Rosengren struck a hawkish tone in a speech titled "Bad Zero: Financial Stability in a Low Interest Rate Environment" at the DNB-Riksbank Macroprudential Conference Series in Amsterdam. Rosengren said a low interest-rate environment introduces risk to financial stability and makes addressing recessions with policy harder.
Also in Fedspeak Tuesday, Dallas Fed President Robert Kaplan will discuss current economic conditions and implications for monetary policy at the Commonwealth Club in San Francisco at 3 p.m.
It's a busy week of Fed speeches in the days following the central bank's decision to raise interest rates for the second time in a year. The Fed hiked rates by 25 basis points at its meeting on Wednesday, June 14, a decision widely anticipated. The central bank views softening inflation trends as merely transitory and anticipates another interest rate hike before the year is out.
It is day two of discussions in Brussels between negotiators from the U.K. and the European Union. Parties from both are determining the details of the U.K.'s plan to remove itself from the soon-to-be 27-country bloc. Negotiators have until May 2019 to agree on new deals on trade, immigration, and financial commitments, among other issues, before the U.K. officially leaves the EU.
Tesla Inc. (TSLA) rose about 1% in premarket trading on Tuesday on a report the electric-vehicle maker could open a new production facility in China. Bloomberg reported that Tesla could reach a deal with officials in China to build a new plant in the Lingang development zone near Shanghai, but would first need to arrange a joint-venture agreement with a local manufacturer in order to comply with Chinese law. The agreement could come as soon as this week, Bloomberg reported, citing people familiar with the matter.
Parexel International Corp. (PRXL) agreed on Tuesday to be acquired by Pamplona Capital Management in a deal worth $5 billion. Private-equity firm Pamplona offered $88.10 a share in cash, valuing Parxel at a 5% premium to its Monday close. However, that premium rises to nearly 28% when compared to share prices before rumors of a possible deal broke in early May.
Lennar Corp. (LEN) added 3.3% after topping profit and sales estimates over its second quarter. The homebuilder earned 91 cents a share, far higher than consensus of 79 cents. Revenue of $3.26 billion exceeded analysts' targets of $2.81 billion. Deliveries increased 15%, while new order value climbed 17%.
Goodyear Tire & Rubber Co. (GT) added 1.5% after Jefferies upgraded its rating to buy from hold. Analysts said the company will likely see higher volume and better cash returns.
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