DJIA Futures: -3 (-0.01%)
SPX Futures: +2 (+0.04%)
NASDAQ Futures: -13 (-0.1%)
Good morning friends!
Futures are flat after the market’s best week since March.
Let’s get right to it!
The International Monetary Fund’s managing director says lending has not slowed enough to warrant the Fed pausing its rate-hiking cycle.
Kristalina Georgieva told CNBC over the weekend, “We don’t yet see a significant slowdown in lending. There is some, but not on the scale that would lead to the Fed stepping back.”
She said the strong jobs report on Friday supports the Fed hiking rates again this month.
Georgieva added, “The pressure that comes from incomes going up and in unemployment being still very, very low, means that the Fed will have to stay the course and perhaps in our view, they may need to do a little bit more.”
She called on the central bank to “pay attention to trends and be agile, adjusting — should the trends change.”
Oil prices are rallying this morning after Saudi Arabia pledged more voluntary production cuts.
West Texas Intermediate crude futures are up 2.7% to $73.65 bbl while Brent crude futures are up 2.5% to $78 bbl.
OPEC+ made no changes to its planned cuts for the rest of the year but Saudi Arabia announced it will cut production by another 1 million barrels per day starting in July.
Saudi production will fall to 9 million bpd from around 10 million in May.
Apple (AAPL) shares are up 0.9% ahead of the open ahead of the company’s Worldwide Developers Conference.
The WWDC kicks off today in Cupertino, California.
Apple is widely expected to announce a “Reality Pro” mixed reality headset.
The headset is rumored to offer both virtual reality and augmented reality.
The company is also expected to reveal new MacBooks and iOS 17 while will include new features for the iPhone, iPad, and Apple Watch
Spotify (SPOT) shares are slipping 0.2% in premarket trade after the company announced it will layoff roughly 200 employees.
The cuts represent just 2% of Spotify’s workforce and are part of a “pivot” in its podcasting unit.
The vice president said those impacted will receive “generous severance packages”.
This will be a slower week of economic data for traders.
Later this morning the S&P Global services PMI for May will be released at 9:45 a.m. ET followed by April factory orders and the ISM services PMI at 10:00 a.m.
Then on Wednesday, the April trade deficit will be released at 8:30 a.m. and the April consumer credit report will be out at 3:00 p.m.
Weekly jobless claims will be reported Thursday at 8:30 a.m. with April wholesale inventories at 10:00 a.m.