Happy Tuesday Everyone. Today is June 30th and markets jumped on Monday as investors shrugged off coronavirus surges and rollbacks of reopenings in the U.S. However, the Dow set for a lower open after 58-point surge yesterday. Lululemon announced yesterday that they will be acquiring their first company, Mirror, an at-home fitness company, for $500 million. We also see that nearly half the U.S. population is without a job, meaning we need to create around 30 million jobs to get back to where we were in the early 2000s.
Dow futures were pointing to about a 100-point decline at Tuesday’s open after starting the week the a gain of 580 points or 2.3%. Investors are trying to gauge whether the surge in the coronavirus cases in South and West will derail the market’s comeback.
Lululemon is acquiring the in-home fitness company Mirror for $500 million, the retailer announced Monday. This marks Lululemon’s first acquisition. Lululemon shares were up almost 4% in after-hours trading. The deal is expected to close in the second quarter of fiscal 2020.
The employment-population ratio — the number of employed people as a percentage of the U.S. adult population — plunged to 52.8% in May, meaning 47.2% of Americans are jobless. As the coronavirus-induced shutdown tore through the labor market, the share of population employed dropped sharply from a recent high of 61.2% in January, farther away from a post-war record of 64.7% in 2000.“To get the employment-to-population ratio back to where it was at its peak in 2000 we need to create 30 million jobs,” said Torsten Slok, Deutsche Bank’s chief economist. Investors will look to this week’s June jobs report for an update on the pace of the labor market recovery.
The Paycheck Protection Program has about $130 billion in remaining funds. Small-business owners won’t be able to access that money after June 30, however. The Small Business Administration has approved nearly 4.8 million forgivable loans to small businesses through the Paycheck Protection Program since it opened in early April. There are other options available to ailing businesses, but they may be limited or come with unfavorable terms.
Postmates is deciding between going public and selling to Uber or special purpose acquisition company
U.S. food delivery company Postmates has received acquisition offers from Uber and a special purpose acquisition company, according to sources. Uber turned its attention to acquiring Postmates after its deal to buy Grubhub fell apart about two weeks ago. Postmates had been planning on an initial public offering and could still choose to pursue that path, one of the people said.