Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Pre-Market: Amazon Launches Subscription Payment Services; Global Stocks Rise to All-Time Highs


The video game industry's biggest event starts today with Microsoft, Sony, and Nintendo flaunting their wares.

Stock futures pointed toward a lower open on Monday. Before the opening bell, Dow Jones (INDEXDJX:.DJI) futures fell 0.20% to 16,752. Nasdaq (INDEXNASDAQ:.IXIC) futures moved lower, rising 0.13% to 3,748.25.  Futures on the S&P 500 (INDEXSP:.INX) were down 0.14% to 1,928.40 -- a mere 2.5% shy of the 2,000 mark.


Amazon (NASDAQ:AMZN) will greatly expand its role as an e-commerce middleman today with the launch of a new service that manages subscription payments for other companies and startups. The offering pits Amazon against eBay (NASDAQ:EBAY)-owned PayPal, currently the leading online payments service for third parties. Amazon users will be able to pay for services like their monthly phone bill or digital music subscriptions using payment information stored on Amazon. Third-party sellers currently account for 40% of Amazon's sales. The launch comes nine days before Amazon is expected to reveal its first smartphone. Shares of Amazon rose 0.19% ahead of the opening bell.

The Electronic Entertainment Expo, popularly known as E3, kicks off today in Los Angeles, where press conferences are expected from the video game industry's biggest players, including Microsoft (NASDAQ:MSFT), Sony (NYSE:SNE), Nintendo (OTCMKTS:NTDOY), Electronic Arts (NASDAQ:EA), and Ubisoft (EPA:UBI). Gamers will be paying close attention to Sony's Project Morpheus 3D headset, which it's expected to show off today. Sony's main competition in the virtual-reality headset space is from Oculus VR, which was acquired by Facebook (NASDAQ:FB) in March for $2 billion. Sony fell .86% in pre-market trading.

The climbing price of coffee beans has forced Kraft Foods (NASDAQ:KRFT) to raise the price of its coffee product lines Maxwell House and Yuban by 10%. The price hike follows a similar move by J.M. Smucker (NYSE:SJM), which increased prices of its coffee brands including Folgers and Dunkin' Donut (NASDAQ:DNKN) roast, by 9% last week. This is the first price increase from either company since May 2011, driven by a 90% increase in the price of ICE arabica coffee futures between January and April. Shares of Kraft rose 0.30% in pre-market trading.

Tyson Foods (NYSE:TSN) will acquire Hillshire Brands (NYSE:HSH) for an expected $63 per share, which values the company at over $7.7 billion. Tyson beat out rival food maker Pilgrim's Pride (NASDAQ:PPC), which had offered only $55 per share. The acquisition has forced Hillshire to terminate its plans to buy Pinnacle Foods (NYSE:PF), a deal announced last month valued at $4.3 billion. Shares of Tyson foods were down 1.25% before the open. Hillshire rose 5.07%.


Today's economic calendar is a light one, with the TD Ameritrade Investor Movement Index's latest update expected at 12:30 p.m. There will be three speeches from members of the Federal Reserve today: St. Louis Federal Reserve Bank President James Bullard at 9:10 a.m.; Federal Reserve Governor Daniel Tarullo at 12:35 p.m.; Boston Federal Reserve Bank President Eric Rosengren at 1:30 p.m. Keep an eye out for the following numbers expected later this week: the Labor Department's Job Openings and Labor Turnover Survey (JOLTS) on Tuesday; monthly retail sales on Thursday; and consumer sentiment index on Friday.

Global Markets

Global stocks moved toward all-time highs on Monday as global interest rates are at record lows and major economies are showing promising turnarounds. Asian stocks reached their highest levels in three years. In a sign of increasing global demand, Chinese exports grew 7% in May. Imports fell 1.6%, leaving the world's second-largest economy with a trade surplus of $35.9 billion. Japan's economy grew 1.6% in the first quarter, data showed, which puts its annualized growth at 6.7%. While consumer spending was expected ahead of Japan's April sales-tax hike, businesses were seen investing more domestically. European stocks extended their six-year high on Monday. In Russia, companies are preparing to switch contracts to renminbi and other Asian currencies, fearing that Western sanctions could block them from participating in US dollar markets.

Twitter: @brokawbrokaw
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Featured Videos