Tesla, Intel, Broadcom, Shutterfly and China Rates – 5 Things to Know


Here are five things to know for Tuesday, June 11:

1. – Stock Futures Point to a sixth day of consecutive earnings

US equity futures rose on Tuesday, heralding a sixth consecutive day of gains for Wall Street, although Donald Trump said he was willing to collect additional tariffs on China if a trade deal was not reached. the G-20 summit scheduled later this month.

The president told CNBC on Monday that he would raise tariffs on China if his Chinese counterpart, President Xi Jinping, did not attend the G-20 meeting. Everything indicates that Xi will be at the top in Japan.

China, for its part, said it would react strongly if the United States persisted in intensifying its trade tensions.

"China does not want to wage a trade war, but we are not afraid to wage a trade war," Chinese Foreign Ministry spokesman Geng Shuang said.

"If the United States only wants to aggravate trade frictions, we will react and fight until the end," he added.

The spokesman would not intend to confirm a Xi-Trump meeting at the G-20, saying the information would be released as soon as it would be available for the ministry, Reuters reported.

The Dow Jones Industrial Average contracts were up 116 points, the S & P 500 futures contracts 13.30 points and the Nasdaq futures 48 points.

The economic calendar released Tuesday in the United States includes the producer price index for May at 8:30 am ET.

Dave & Buster's Entertainment (PLAY – Get the Report) and H & R Block (HRB – Get the Report) are expected to show their results on Tuesday.

2. – Tesla jumps before the annual meeting

Tesla (TSLA – Get Report) rose 5.4% to $ 215.52 in precommercial product transactions Tuesday ahead of the annual shareholders meeting of the auto industry.

Shares jumped more than 4% on Monday after Ben Kallo, a Baird analyst, said he believed the sale of Tesla shares before resuming last week's rally was over.

Kallo also said he expected positive news from Tesla at its annual meeting. The company has maintained its target price of $ 340.

"Weak demand remains a strong argument, and while it appears that the demand for the S + X model has declined, we continue to believe that the demand for Model 3 is underestimated," Kallo wrote. "Positive updates in recent weeks, including email leaks and reports of significant deliveries, appear to have improved sentiment about demand, which we positively see."

Executive Director Elon Musk will lead the annual Tesla meeting Tuesday at 5:30 pm in Mountain View, California. AND.

"After six brutal months for Tesla and its shareholders, we expect Tuesday to be a positive event, as Musk and the Tesla team report on the progress made so far in production and new models." Model Y waiting for next year) to further catalyze demand, while highlighting some of the upcoming challenges they expect, "said Daniel Ives of Wedbush.

3. – Acquisition of Shutterfly for $ 1.74 billion

Shutterfly (SFLY – Get Report), the digital imaging company, has signed an agreement for the purchase of private equity firm Apollo Global Management (APO – Get Report) for $ 1.74 billion.

Shutterfly will be purchased for $ 51 per share in cash, a premium of about 1.5% over Shutterfly's closing price on Monday of $ 50.25. The stock fell 2.2% to $ 50.01 in trading before the sale on Tuesday.

"We look forward to working closely with Apollo while continuing to deliver a compelling service that allows customers to build deeper, more personal relationships and strengthen our digital and manufacturing capabilities to support sustainable growth." said William Lansing, president of Shutterfly.

Apollo will also buy Snapfish, which he plans to combine with Shutterfly to create a larger player in online photography services, according to the Wall Street Journal.

The acquisition of Snapfish, which, like the parent company District Photo, is closely related, would be contingent upon the closing of the Shutterfly acquisition. District Photo would have a substantial minority stake in the merged company, a person familiar with the subject told the Journal.

Shutterfly also announced Monday the appointment of Ryan O & # 39; Hara as President and Chief Executive Officer effective June 24th. Mr. O. Hara was for four years the chief executive officer of Move Inc.

4. – Intel is preparing to buy startup networks, barefoot networks

Intel (INTC – Get Report) will buy the start-up networks Barefoot Networks in anticipation of a competition with Broadcom (AVGO – Get Report) in cloud computing.

Intel has described Barefoot Networks as "an emerging leader in Ethernet switch silicon and data center software," and said the agreement would allow Intel to focus on "network leadership and networking." end-to-end cloud infrastructure, and will enable Intel to continue to provide new workloads, experiences, and features to our data center customers. "

Intel is the largest chip maker in the United States, but it does not manufacture chips for managing communications over Ethernet, a domain dominated by Broadcom.

The acquisition of Barefoot Networks by Intel is expected to be finalized in the third quarter. The terms of the agreement have not been disclosed.

Intel grew 2.4% to $ 47.13 in pre-sale transactions.

Broadcom, meanwhile, jumped 2.6% to 282 USD after signing a two-year contract to provide Apple (AAPL – Get Report) radio-frequency components for smartphones, tablets and smartwatches.

5. – House puts a big technician on trial

The Judiciary Committee of the House will begin Tuesday its investigation into the dominance of the major brands of the technology sector in the market, starting by examining the impact of corporate platforms on the content of information, the media and the spread of misinformation online, reported the Associated Press. .

Last week, the committee unveiled an in-depth "top-down" review of anonymous technology companies, the first of these congressional investigations that the Department of Justice and the Federal Trade Commission made a double effort. to tackle the perceived dominance and potential. abuse of technology giants such as Apple, Facebook (FB – Get Report), Alphabet (GOOGL – Get Report) and Amazon (AMZN – Get Report).

"These are monopolies," David Cicilline's representative told Fox News Sunday.

Cicilline, a Democrat from Rhode Island, will lead the subcommittee's hearing on Tuesday and said the panel would be outlining the digital market and "dominating the big technology platforms", in the perspective of Legislative action to increase competition.

"We know the problems, they are easy to diagnose," said Cicilline. "It will be harder to define the solutions."

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