03Jun2020 Pre-Market Commentary: Wall Street To Open Moderately Higher, DOW Futures Up 215 Points After ADP Jobs Report Shows A Cooler-than-expected 2.76 Million Job Losses Falling Less Than Expected

Here is the current market situation from CNN Money

European markets are sharply higher today with shares in Germany leading the region. The DAX is up 2.33% while France’s CAC 40 is up 1.97% and London’s FTSE 100 is up 1.16%.

3M names General Electric exec Monish Patolawala as CFO

U.S. industrial conglomerate 3M Co on Wednesday appointed General Electric Co executive Monish Patolawala as the company’s chief financial officer, effective July 1.

U.S. private payrolls fall less than expected in May

U.S. private payrolls fell less than expected in May, with employers laying off another 2.76 million workers.

Saudi, Russia reach deal on oil cuts, raising pressure for compliance

OPEC leader Saudi Arabia and non-OPEC Russia have agreed a preliminary deal to extend existing record oil output cuts by one month while raising pressure on countries with poor compliance to deepen their cuts, OPEC+ sources told Reuters.

Lufthansa expects significantly larger loss in second quarter

Lufthansa expects a significantly larger loss in the second quarter of this year, the airline group’s finance chief said on Wednesday.

TUI strikes compensation deal with Boeing, delays 737 MAX deliveries

Europe’s biggest travel company, TUI Group , said it has struck a deal with Boeing for compensation and deferred deliveries of the grounded 737 MAX jet, boosting its finances as it seeks to survive the coronavirus pandemic.

Oil falls from $40 on doubts over early OPEC meeting

Oil fell after touching its highest since March at more than $40 a barrel on Wednesday, pressured by doubts that an early meeting of OPEC and its allies to extend existing output cuts will take place.

China drives global oil demand recovery out of coronavirus collapse

China’s oil demand has recovered to more than 90% of the levels seen before the coronavirus pandemic struck early this year, a surprisingly robust rebound that could be mirrored elsewhere in the third quarter as more countries emerge from lockdowns.

Global shares hit three-month highs on economic recovery hopes

World shares hit three-month highs on Wednesday and the dollar fell for the sixth day running as easing lockdowns and hopes for more monetary stimulus gave investors confidence, despite civil unrest in the United States and rising COVID-19 tolls.

SoftBank launches $100 million fund investing in ‘people of color’

SoftBank Group Corp is launching a $100 million fund to invest in “companies led by founders and entrepreneurs of color”, in the latest corporate action as protests roil the United States.

Boeing Jumps After Third Point Lists Company Among Top MTD Winners

Boeing Jumps After Third Point Lists Company Among Top MTD Winners Tyler Durden Wed, 06/03/2020 – 08:43

Just before 8am, shares of Boeing jumped to session highs rising as much as 3%, the highest level since last week…

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“We Came To Riot”: Illinois Man Arrested With Cache Of Explosives

“We Came To Riot”: Illinois Man Arrested With Cache Of Explosives Tyler Durden Wed, 06/03/2020 – 08:30

Authored by Jonathan Turley,

Yesterday I wrote about the curious effort by some in politics and the media to portray œRussians or œWhite Supremacists as driving the rioting in various cities.Â

The role of anarchists and Antifa members was obvious – and reinforced by arrests reported in various cities. This gold encrusted arrestee is Matthew Lee Rupert, 28, who was arrested in Chicago trying to pass out explosives – allegedly much like the two attorneys arrested in New York. Â

The evidence includes a videotape on which Rupert states œwe came to riot.

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ADP Employment Data Massively Beats Expectations

ADP Employment Data Massively Beats Expectations Tyler Durden Wed, 06/03/2020 – 08:20

Ahead of what will likely be another disastrous non-farm payrolls print this Friday, ADP was expected to show a slowing in the surge in joblessness (from 20.236mm in April to 9mm in May), but ADP massively beat expectations with a ‘mere’ 2.76mm jobs lost.

œThe impact of the COVID-19 crisis continues to weigh on businesses of all sizes, said Ahu Yildirmaz, cohead of the ADP Research Institute.

œWhile the labor market is still reeling from the effects of the pandemic, job loss likely peaked in April, as many states have begun a phased reopening of businesses.

“The Disconnect Is Getting Wider And Wider”: Futures Storm Higher As America Burns For 8th Night

“The Disconnect Is Getting Wider And Wider”: Futures Storm Higher As America Burns For 8th Night Tyler Durden Wed, 06/03/2020 – 08:10

“The disconnect between what the average person sees happening in the world and what they see happening in the financial markets is getting wider and wider,”

– Marshall Gittler, head of investment research at BDSwiss, wrote in a note to clients.

What rioting, what 40 million unemployed, what second wave? The MSCI All Country World Index has risen for 8 days in a row, a testament to the fact that not only retail investors but global markets now view stocks as a risk free asset, assuring that the next bursting of the bubble will be unforgettable, prompting even Bill Dudley to say on BBG TV that “some Fed intervention has created a bit of moral hazard.” That’s right Bill, and it may have something to do with the fact that overnight America burned for an 8th consecutive day in nationwide riots as tens of thousands of people defied U.S. curfews to take to the streets.

Anyway, until the next crash all one can do is buy, confident that central banks will always be there to step in and bail everyone out, and sure enough world shares hit three-month highs on Wednesday and the dollar fell for the sixth day on the usual narrative of “hope” and “optimism” …

Pandemic not the only thing techies should be worried about

Pandemic not the only thing techies should be worried aboutIndia’s top five IT firms have hired fewer people in last five years when compared to their growth.

US lens on how India taxes Silicon Valley

US lens on how India taxes Silicon ValleyCurrently, India levies 6% tax in the form of equalisation levy on digital companies advertising revenue.

India isn’t the only one on Moody’s hit list

India isn’t the only one on Moody’s hit listOn Monday, Moody’s downgraded India’s sovereign rating to Baa3, and retained its outlook as negative.

Deep Dive: These 16 stocks figured prominently in this $39 billion-fund manager’s strategy as markets dove in March

David Giroux of T. Rowe Price describes what life was like during the worst moments of the market downturn.

Deep Dive: If you think the time is right for value stocks, this diversified dividend ETF may fit the bill

The Pacific Global U.S. Equity Income ETF is broadly invested, with a dividend yield of 3.74%, nearly twice that of the S&P 500.

Deep Dive: This unusual income fund has a dividend yield of 6.5% and has beaten the S&P 500

John Bartlett at the Reaves Utility Income fund selects companies with high returns on equity from expansion or improvement projects.