Stock Market Today Mid-Morning Updates
On Monday, the Dow Jones Industrial Average is up by 300 points after it dropped for the ninth week out of the last ten. Investors will be able to get a look at the latest consumer price index this week. Gas prices in the U.S. have also shown no signs of stopping. The national average at the pump reached nearly $4.87 per gallon on Monday. States like California continue to see even higher prices, with gas costing an average of $6.34 per gallon.
Shares of DiDi (NYSE: DIDI) skyrocketed by over 40% on today’s opening bell after a report detailing that China regulators have ended their probe into the company. It has been one of the worst-hit companies by Beijing’s regulatory tightening since its U.S. IPO. Solar energy companies like Sunrun (NASDAQ: RUN), SunPower (NASDAQ: SPWR), and First Solar (NASDAQ: FSLR) are also in focus today after reports that the White House would declare a 24-month exemption from solar panel tariffs to spur U.S. solar panel production.
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are up by 1.93% today while Microsoft is also up by 1.49%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading higher on Monday. Among the Dow financial leaders, Visa (NYSE: V) is up by 2.05% while JPMorgan Chase (NYSE: JPM) is also up by 1.60%
Shares of EV leader Tesla (NASDAQ: TSLA) are up by 2.46% on Monday. Rival EV companies like Rivian (NASDAQ: RIVN) are also up by 1.26%. Lucid Group (NASDAQ: LCID) is up by 3.54% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are trading higher today as well.
Dow Jones Today: U.S. Treasury Yields Inches to 2.98%; Oil Prices Top $120 Per Barrel
Following the stock market opening on Monday, the S&P 500, Dow, and Nasdaq are all trading higher at 1.37%, 0.94%, and 1.80% respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is up by 1.89% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also up by 1.37%.
The benchmark 10-year U.S. Treasury yield rose to 2.98% as we begin a new week of trading. Oil prices continue to rise, with West Texas Intermediate crude and Brent crude rising to about $120 per barrel. This comes after Saudi Arabia raising crude prices for July and amid doubts that an increased OPEC+ monthly output target could help ease tight supply. Also, Citibank (NYSE: C) and Barclays (NYSE: BCS) raised their price forecasts for 2022 and 2023. The banks say that they expect Russia’s output and exports to fall by the end of 2022 amidst the ongoing Russia-Ukraine war.
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Spirit Stock Gains Altitude Following Increasing Efforts From JetBlue Amidst Acquisition Battle
Shares of Spirit Airlines (NYSE: SAVE) are front and center in the stock market today. This comes at a time when fellow airline operator JetBlue (NASDAQ: JBLU) seems to be ramping up its acquisition efforts. Namely, JetBlue, as of today, is raising its buyout offer for the low-cost carrier to $31.50 per share. This would be an increase from its previous offer of a $30 per share takeover deal. Through the latest terms, Spirit shareholders will now receive $30 per share at the closing of the deal. Subsequently, they will also receive a prepayment of $1.50 per share from a “reverse break-up fee.”
For one thing, such a play would be timely on JetBlue’s part. After all, Spirit is set to hold its shareholder vote from a competing bidder Frontier Group (NASDAQ: ULCC) on June 10 this week. Essentially, JetBlue is raising its reverse break-up fee to $350 million through this move. This would provide Spirit with more incentive to take up its offer should the deal fail to take off from antitrust pressure. Overall, this could be JetBlue aiming to sweeten its current offer seeing as Spirit rejected its previous offer due to antitrust-related fears. Notably, this would be above Frontier’s current agreement to pay $250 million in break-up fees, should the deal fall through.
Not to mention, such a massive deal would serve to benefit airline operators in general now. With the current boom in U.S. air travel, this would be the case. Just last week, the U.S. Transportation Security Administration screened a total of 6.5 million air passengers during the memorial day weekend. As such, SAVE stock, JBLU stock, ULCC stock, and their airline industry peers would be in focus today.
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Twitter Stock Tanks After Musk Claims Material Breach Of Merger Agreement By Company
At the same time, shares of Twitter (NYSE: TWTR) are coming under fire at the opening bell today. On the whole, this follows claims from Tesla CEO Elon Musk regarding the current state of his move to acquire Twitter. According to Musk, Twitter has “materially breached,” its obligations under the merger agreement.
Providing some further clarity on this are Musk’s lawyers via a 13D filing. They write, “Based on Twitter’s behavior to date, and the company’s latest correspondence in particular, Mr. Musk believes the company is actively resisting and thwarting his information rights (and the company’s corresponding obligations) under the merger agreement.” They continue, “This is a clear material breach of Twitter’s obligations under the merger agreement and Mr. Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement.”
All in all, with Musk potentially pulling the plug on the $44 billion deal, investors appear to be spooked. Evidently, TWTR stock is now trading lower by over 3% in the stock market today. Regardless of how you think this saga will play out, TWTR stock would be gaining traction now.
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