News
5 things you should know before the stock market opens on Tuesday, June 4
- Paramount and Skydance have agreed to terms on a merger, CNBC’s David Faber reports.
- Google is cutting at least 100 positions in its cloud division.
- Stocks dependent on economic growth, including banks and industrials, fell as concerns grew about the strength of the economy.
Here are five important things investors need to know to start the trading day:
O Dow Jones Industrial Average fell on Monday at the start of the month as weak US manufacturing data raised concerns about the strength of the economy. Stocks dependent on economic growth, including banking and industrial stocks, led the pullback. The Dow fell 115.29 points, or 0.30%. The S&P 500, in turn, made a small gain, rising 0.11%, while the Nasdaq Composite rose 0.56%. The trading day had its share of excitement, as technical problem on the New York Stock Exchange affected the price quotes of several stocks for much of the morning, including incorrectly showing Berkshire Hathaway shares falling nearly 100%. This issue was resolved around noon. follow live market updates.
The long-awaited deal with Paramount may be reaching its climax. Supreme and film and TV studio Skydance have agreed to terms of a mergerCNBC David Faber reported Monday. The deal, valued at $8 billion, could be announced in the coming days, although it is not expected to happen before Paramount’s annual shareholder meeting on Tuesday. Paramount controlling shareholder Shari Redstone has not yet signed off on the proposal, but the purchasing consortium – David Ellison’s Skydance, backed by private equity firms RedBird Capital and KKR – has agreed to the terms. As part of the negotiations, the agreement will not require a shareholder vote, Faber said.
A person walks next to the Google Cloud logo at the Mobile World Congress (MWC) in Barcelona, Spain, on February 27, 2023.
Nacho Doce | Reuters
Alphabet he has dismissals carried out across multiple teams across Google’s fast-growing cloud unit, including in sales and engineering. At least 100 positions have been cut, sources said. Google has implemented rolling layoffs since early 2023, leading employees to complain about tighter deadlines, fewer resources, and fewer opportunities for advancement. Google Cloud, which houses much of the company’s AI technology, saw its operating profit more than quadruple in the most recent quarter.
Keith Gill, known on Reddit by the pseudonym DeepF——Value and as Roaring Kitty, is seen in a fragment of a YouTube video displayed on a smartphone screen in front of the GameStop logo.
Pavlo Gonchar | Light Rocket | Getty Images
Meme stock leader Keith Gill — who goes by the names “Roaring Kitty” on YouTube and X and “DeepF——Value” on Reddit — appeared to to hold on for your GameStop position even after the stock had a big rally Monday. Gill shared another screenshot after the stock market closed, which showed the same common shares and call options he posted on Sunday; CNBC was unable to verify the post. This came after GameStop soared as much as 70% intraday before closing 21% higher. The stock fell after the Wall Street Journal reported Monday that E-Trade, the Morgan Stanley-owned brokerage that Gill uses, is holding internal talks on whether to ban him from the platform about concerns about potential market manipulation.
A screen displays Spotify’s logo and business information on the floor of the New York Stock Exchange on February 6, 2024.
Brendan McDermid | Reuters
Spotify It is increasing the price of your premium subscription for the second time in a year. The Swedish music streaming company said the price increases will help it “continue to invest in and innovate the features of our products.” For users in the US, an “Individual” plan will cost $11.99 per month, a $1 increase from the current price. A “Duo” plan will cost $16.99, up from $14.99, and a “Family” plan will cost $19.99, an increase of about $3 per month. The “Student” plan will remain the same at $5.99.
— CNBC’s Brian Evans, Lillian Rizzo, Alex Sherman, Jennifer Elias, Yun Li, Jesse Pound and Ashley Capoot contributed to this report.
— Track broader market actions like a pro CNBC Pro.