BY THE NUMBERS
U.S. stock futures turned slightly positive Monday after the Dow Jones Industrial Average declined for a seventh week in a row, the first time that's happened in more than two decades. The S&P 500 and the Nasdaq both dropped for six straight weeks for the first time since 2011 and 2012, respectively. Despite Friday's strong rally, led by the Nasdaq's 3.8% advance, all three stock benchmarks finished with weekly losses of more than 2%. (CNBC)
The 10-year Treasury yield was steady Monday, just under 3%. U.S. oil prices dipped but were still roughly $109 per barrel. Crypto fell again, with bitcoin at roughly $30,000 early Monday. Retail earnings kick off Tuesday and the government is out with April retail sales data. Investors hope to gain insight from these reports on how consumers are reacting to rising inflation. (CNBC)
Former Fed Chairman Ben Bernanke said the current central bank erred in waiting to address inflation. "One of the reasons was that they wanted not to shock the market," he told CNBC's Andrew Ross Sorkin in an interviewed that ran on television Monday.
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IN THE NEWS TODAY
JetBlue Airways on Monday took its all-cash offer to buy Spirit Airlines hostile. In a letter to Spirit shareholders, JetBlue offered $30 per share and wrote it was ready to go to $33 if the board engages to negotiate a "consensual transaction." Shares of Spirit rose nearly 10% to more than $18 per share in premarket trading, far lower than the offer prices. (Reuters)
Earlier this month, Spirit rejected JetBlue's all-cash offer of $33 per share, or $3.6 billion, citing regulatory concerns. At the time, Spirit said it was sticking with a deal to merge with fellow ultra-low-cost carrier Frontier Airlines, an agreement struck in February valued at $2.9 billion. (CNBC)
McDonald's (MCD) said Monday it will sell its business in Russia, a little more than two months after it paused operations in the country due to its unprovoked invasion of Ukraine. McDonald's said its "continued ownership of the business in Russia is no longer tenable," and it's not consistent with its values. (CNBC)
With Finland and Sweden both announcing their bids to join the Western military alliance NATO, ending a decades-long history of military non-alignment, the world wonders how Russia might react. Any NATO enlargement requires the approval by all 30 members and their legislatures. (CNBC)
Tesla (TSLA) has delayed by at least a week a plan to restore production at its Shanghai plant to levels before the city's Covid lockdown more than six week ago, according Reuters, citing an internal memo. Companies in Shanghai, China's biggest city, are only allowed to reopen if they can operate under such an arrangement, which requires workers to be isolated. (Reuters)
Shanghai aims to reopen broadly and allow normal life to resume from June 1, a city official said Monday, after declaring that 15 of its 16 districts had eliminated cases outside quarantine areas. In Beijing, dozens of new Covid cases have been discovered every day for the past three weeks. The Chinese capital is not under a citywide lockdown but is subject to virus mitigation curbs. (Reuters)
Elon Musk, CEO of Tesla and SpaceX, on Saturday tweeted that Twitter's (TWTR) legal team accused him of violating a nondisclosure agreement by revealing the sample size for the social media platform's checks on automated users. "Twitter legal just called to complain that I violated their NDA by revealing the bot check sample size is 100," he wrote. (CNBC)
Musk on Friday tweeted that his $44 billion cash deal to take the company private was "temporarily on hold" while he awaited data on the proportion of its fake accounts. In a second tweet Friday, he said he was "still committed" to the deal. Shares of Twitter fell more than 2% in Monday's premarket after a roller-coaster ride Friday. (CNBC)
* Trump can tweet if Musk lifts his ban, but has to first post on Truth Social (CNBC)
STOCKS TO WATCH
Carvana (CVNA) rallied 13.3% in premarket action after the used car retailer forecast significant core earnings for 2023. In a Securities and Exchange Commission filing, Carvana also detailed its plans to cut costs.
Warby Parker (WRBY) Slipped 3.8% in the premarket after the company reported an unexpected quarterly loss as well as revenue that came in slightly below forecasts. The eyewear retailer reiterated its prior full-year outlook.
Netflix (NFLX) added 1.8% in premarket trading after Wedbush upgraded the stock to outperform from neutral. The firm said the staggered release of shows like "Ozark" and "Stranger Things" will help reduce churn and that it believes Netflix is once again positioned to grow.
Trade Desk (TTD) added 3.3% in premarket trading after Stifel Financial upgraded it to buy from hold and increased its price target to $80 per share from $50 a share. Stifel said the programmatic advertising company will benefit from the addition of ad-supported versions of Netflix and Disney+.
Ford Motor (F) sold another 7 million shares of electric vehicle maker Rivian (RIVN), according to an SEC filing. That follows the sale of 8 million shares last week, with the two sales leaving Ford with a 9.7% stake. Rivian lost 1.1% in premarket trading.
SoFi (SOFI) rallied 4.2% in the premarket after Piper Sandler upgraded it to overweight from neutral. The firm said SoFi will benefit from rapid growth in deposits, the expiration of the student loan moratorium and revenue growth in financial services.