Happy Monday Everyone! We hope everyone had a happy 4th of July. Last week was the worst yet for new COVID-19 cases in the US, leading to more roll-backs of economic reopening plans. Stock futures jumped this morning and coronavirus cases spiked even more over the weekend, with the largest jump seen in the Americas. But markets rallied on a record employment report. 4.8M jobs were added in June, compared to 2.9M expected. Uber acquired food-delivery service Postmates in a $2.65 billion deal, while Warren Buffet’s Berkshire purchased Dominion Energy natural gas assets in a $10 billion deal.
U.S. equity futures traded sharply higher on Monday, extending last week’s strong performance to start to second half of the year. Dow futures rose about 345 points, or 1.3%. The S&P 500 and Nasdaq-100 futures were 1.1% higher. Stocks whose performance hinges on the reopening of the economy rose in premarket trading.
Uber has bought food-delivery service Postmates for $2.65 billion in stock. Postmates is the fourth-largest U.S. food delivery service by market share and has struggled to compete nationally against DoorDash, GrubHub and Uber Eats. Uber is banking on food delivery to help sustain its business during the coronavirus pandemic, as demand for ride-sharing has plunged.
The World Health Organization said Saturday that more than 200,000 coronavirus cases were confirmed over a 24-hour span, a record. The largest spike was seen in the Americas, where nearly 130,000 new cases were confirmed. Florida and Texas reported daily record spikes of 11,445 and 8,258, respectively, on Saturday.
The conglomerate is spending $4 billion to buy the natural gas transmission and storage assets of Dominion Energy. Including the assumption of debt, the deal totals almost $10 billion. It’s Berkshire’s first major purchase since the coronavirus pandemic and subsequent market collapse in March. With the purchase, Berkshire Hathaway Energy will carry 18% of all interstate natural gas transmission in the United States, up from 8%.
China stocks closed higher for a fifth straight session on Monday, extending a robust rally, led by financial shares on hopes of a quick economic recovery, Beijing’s continued reforms in the capital markets and ample liquidity. The blue-chip CSI300 index closed up 5.7% at 4,670.09 points, its highest since June 25, 2015, while the Shanghai Composite Index climbed 5.7% to 3,332.88 points, its highest since March 2018.