US FINANCIAL MARKET
U.S. stocks rose at the open, extending records for equity benchmarks, as data showed employers added 217,000 jobs in May to push payrolls past their pre-recession peak.
- The S&P 500 is higher by as much as 187 percent from its bear-market low in March 2009.
Hedge funds are betting the stock-market tranquility.
- Large speculators have added bets on lower volatility and were net short almost 82,000 contracts on VIX futures last month, the most since October.
- Short selling on the VIX, which amounts to speculation that equities will rise, has increased since March as investors began to regain confidence after a stock selloff earlier in the year.
Tesla wooed by California as New Jersey weighs sales plan.
- California lawmakers offered Tesla regulatory changes to accelerate a planned $5 billion battery “gigafactory” as New Jersey legislators filed a measure that would allow the company to resume electric car sales there.
- In New Jersey, where a state commission banned Tesla from direct sales in April after lobbying by franchise car dealers, three lawmakers are offering a bill to let the company sell directly to consumers.
- Winning the plant that would eventually employ as many as 6,500 people would be a coup for California.
- Tesla is looking at the former Mather Air Force Base near Sacramento, closed in 1993, among other California sites.
- Tesla, California’s largest automotive employer, has said it’s studying sites in Arizona, Nevada, New Mexico and Texas, for the plant that it needs in operation by 2017.
Amazon’s drone dream sets off race to build better sensor.
- In the quest to build drones that can help companies like Amazon.com make door-to-door deliveries, engineers are racing to overcome a fundamental challenge: helping unmanned, suitcase-sized aircraft see where they’re going.
- Jeff Bezos pushed the concept of home-delivery drones to the forefront saying Amazon plans to use small, helicopter-like aircraft to deliver packages as heavy as five pounds (2.3 kilograms) within a 10-mile radius.
Bank of America could pay at least $12 billion to settle probes.
- At least $5 billion of that amount is expected to go toward consumer relief consisting of help for homeowners in reducing principal amounts and monthly payments.
- The second-largest U.S. bank faces multiple government probes over the underwriting, sale and securitization of residential mortgage bonds before the financial crisis.
Hertz to restate results for 2011-2013, shares skid.
- Hertz said that it would have to restate and correct its financial results from 2011 through 2013 as a result of accounting problems. Shares were down 10 percent at the open.
Joy Global profit beats, mining equipment care picks up.
- Demand for equipment maintenance has picked up in 2014 after miners put off servicing for more than a year due to a coal supply glut that led to weak prices.
- Joy Global gets about two-thirds of its revenue from coal miners.
US ECONOMY & POLITICS
U.S. Payrolls Rose 217,000 in May, Unemployment at 6.3%, Nearly a 6-Year Low.
- Employers added 217,000 jobs in May to push U.S. payrolls past their pre-recession peak and the jobless rate held at an almost six-year low as the economy gained traction.
- The median forecast called for a 215,000 increase. Unemployment in May was unchanged at 6.3 percent.
- The so-called participation rate, which indicates the share of working-age people in the labor force, held at 62.8 percent, matching the lowest since March 1978.
- The number of employees on payrolls stood at almost 138.5 million last month, above its peak of 138.4 million reached in January 2008.
- Today’s employment report also showed average hourly earnings rose 0.2 percent to $24.38 in May from $24.33 the prior month. They were up 2.1 percent over the past 12 months.
Economy needs to tighten up before rates can rise: Fed’s Powell.
- While acknowledging that employment in the United States had rebounded, Powell highlighted “significant” slack, referring to unemployed or underutilized workers.
EUROPE & WORLD
Putin meets Ukraine leader.
- Russian President Vladimir Putin held his first talks with Ukraine’s new leader, Petro Poroshenko, and met with President Barack Obama as France sought to use the backdrop of D-Day commemorations to ease tensions over Ukraine.
Canada’s surprise light oil boom delights oil sands producers seeking diluent.
- Canadian oil sands is the world’s third-largest crude reserves behind Saudi Arabia and Venezuela.
- With oil sands production expected to nearly double over the next decade, demand for diluent is expected to surge to around 900,000 bpd in 2025.
- At the moment Canada uses for diluent about 200,000 to 250,000 bpd of condensate, most of that imported from the United States.
TODAY in HISTORY
- The first drive-in movie theater opened in Camden, New Jersey (1933)
- The Securities and Exchange Commission (SEC) was established to protect investors and maintain the integrity of the securities markets (1934)
- Thousands of Allied troops invaded the beaches of Normandy, France, on D-Day (1944)
- Israel invaded Lebanon to drive out the Palestine Liberation Organization (PLO) (1982)
- President Bush proposed a new Cabinet department: The Department of Homeland Security (2002)
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