Here are the most important news, trends and analysis that investors need to start their trading day:
- Stock futures rose after light May jobs report
- Employment growth last month doubled April's tally
- AMC chief makes case in YouTube interview to sell more shares
- Bitcoin drops after Elon Musk tweets breakup meme
- Bill Ackman's SPAC confirms talks to buy 10% of Universal Music
1. Stock futures rose after light May jobs report
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U.S. stock futures rose and the 10-year Treasury yield ticked lower after Friday's weaker than expected government employment report for May. The Dow on Thursday broke a five-session winning streak, with a small decline. However, the 30-stock average closed way off the day's lows of about a 265-point decline. The S&P 500 dropped nearly 0.4%. The Nasdaq gave back 1% on Thursday and was on pace for a 1% weekly decline. The Dow and S&P 500 were little changed for the week.
U.S. companies are watching infrastructure talks between President Joe Biden and Sen. Shelley Moore Capito, the GOP's lead negotiator. They plan to meet again Friday. In their Wednesday meeting, Biden proposed a 15% minimum tax on corporations as part of a compromise to pay for a smaller $1 trillion infrastructure package.
2. Employment growth in May doubled April's tally
Jobs growth last month was about double the pace of April's advance. The U.S. economy added 559,000 nonfarm payrolls in May, compared to estimates of 671,000. As Covid pandemic restrictions continued to ease, food services and drinking places saw 186,000 additions in May. April's jobs overall tally was revised up by 12,000 to 278,000.
The nation's unemployment rate slipped to 5.8% in May compared to estimates for a 5.9% rate. Investors continued to bet that a measured pace of job gains would keep the Federal Reserve from raising interest rates and tightening monetary policy.
3. AMC chief makes case in YouTube interview to sell more shares
Shares of AMC Entertainment dropped more than 3% in Friday's premarket, in a wild Reddit-fueled week of trading that saw the stock nearly double Wednesday and then pull back nearly 18% on Thursday. CEO Adam Aron on Thursday night sat down with Trey Collins, host of the Trey's Trades channel on YouTube. Many of the channel's subscribers are AMC investors. Following two separate share sales this week that generated around $800 million in cash, Aron urged shareholders to support a new plan to issue an additional 25 million shares. Aron reiterated that AMC is looking at a number of acquisition opportunities.
4. Bitcoin drops after Elon Musk tweets breakup meme
Bitcoin fell nearly 5% to around $36,700 on Friday morning, hours after Tesla CEO Elon Musk tweeted a meme showing a couple breaking up and used a bitcoin hashtag and broken heart emoji. Other cryptocurrencies, including ether and dogecoin, also sank. In May, Musk said Tesla would stop accepting bitcoin as a payment method due to concerns over its energy usage.
5. Bill Ackman's SPAC confirms talks to buy 10% of Universal Music
Billionaire investor Bill Ackman's special purpose acquisition company Pershing Square Tontine Holdings confirmed Friday it's in talks to buy 10% of Universal Music Group for around $4 billion. The transaction would value Universal Music at about $42 billion. The holdings company said the deal would not result in a merger and Universal Music will go ahead with a planned listing on Euronext Amsterdam in the third quarter of 2021.