Morning Brief

What to watch today: Dow set to build on Friday's 829 point surge

BY THE NUMBERS

Dow futures were pointing to a strong gain at Monday's open as investors continue to bet on economic progress as states enter various stages of reopening. New York City begins the process Monday. The Dow Jones Industrial Average on Friday capped a strong week, surging 829 points, or nearly 3.2%, on May's shocking jobs gains. The Nasdaq rose 2%, hitting an all-time intraday high Friday but closing shy of February's record. The S&P 500 gained 2.6%. (CNBC)

El-Erian: I'm 'uncomfortable' betting on continued 'huge recovery' in the stock market (CNBC)

Heading into Monday's open, the Dow was within 9% from its record close in February; the S&P 500 was over 5.7% away. From their March 23 coronavirus lows, the Dow and Nasdaq were each up 48%; the S&P 500 was up more than 45%. The Federal Reserve begins its two-day June meeting Tuesday as Wall Street looks for central bankers to continue to support markets. (CNBC)

Druckenmiller said he's been 'humbled' by market comeback, underestimated the Fed (CNBC)
Druckenmiller still betting on Amazon and Microsoft, but overall bearish on growth stocks (CNBC)

RBC Capital raised its price target for Amazon (AMZN) to $3,300 per share, the highest on Wall Street. That kind of level would put the stock over 30% higher than Friday's close. RBC, which rates Amazon outperform, said that online retail is a "structural winner" resulting from the Covid-19 pandemic. (CNBC Pro)

IN THE NEWS TODAY

New York City shifts into phase one of the state's coronavirus reopening plan Monday even as protests against racial injustice continue. Phase one allows more businesses to resume operations, including construction, manufacturing and retail, but only for curbside pickup. Mayor Bill de Blasio said last week the city could move into phase two as soon as early next month. (CNBC)

Five charts that track the U.S. economy amid reopening progress (CNBC) 

Presumptive Democratic presidential nominee Joe Biden travels to Houston on Monday to pay his respects to the family of George Floyd. The former vice president was initially expected to attend Tuesday's private funeral in Houston, where Floyd grew up. Biden, who will instead meet with the family privately without disrupting the services, plans to record a video message for the funeral. (CNBC)

Houston to hold 6-hour public viewing of Floyd's casket (AP)

A majority of the members of the Minneapolis City Council are saying they support disbanding and rebuilding the city's police department. Minnesota last week launched a civil rights investigation into Floyd's death. Nine of the council's 12 members appeared with activists at a rally in a city park Sunday afternoon and vowed to end policing as the city currently knows it.

Democrats are set to propose new police procedures and accountability rules (AP)

Internal campaign surveys and public polling showed a steady erosion in support for President Donald Trump among older people and in battleground states once believed to be leaning decisively in his direction. Trump's handling of the pandemic and protests are being blamed for the polling slump. (AP)

Facebook (FB) chief Mark Zuckerberg said the social network will review existing policies on content related to civil unrest and violence, following criticism over its stance of not moderating or taking down some posts related to those subjects, including some from the president. (CNBC)

STOCKS TO WATCH

AstraZeneca (AZN) contacted Gilead Sciences (GILD) last month about a merger between the two drugmakers, according to a Bloomberg report. Other reports said AstraZeneca is no longer interested in pursuing such a deal, however.

Users of Apple's (AAPL) Apple Card will soon be offered the option of paying for iPads, Macs, and AirPods in monthly, interest-free installments, according to Bloomberg. Apple Card users already have that option for iPhone purchases.

Malaysia's new finance minister told Reuters that $3 billion would not be enough to settle the case involving Goldman Sachs (GS) and sovereign wealth fund 1MDB. The country's former prime minister said in December that Goldman had offered more than $1 billion, to accusations that Goldman had misled investors over $6.5 billion in bond sales.

Recreational vehicle maker Thor Industries (THO) reported fiscal third-quarter profit of 43 cents per share, compared to expectations of a quarterly loss. Revenue also beat forecasts. Thor said it was able to adjust its cost structure to deal with the negative impact of the Covid-19 pandemic. It also said sales began to improve in May as dealerships reopened.

PG&E (PCG) plans to raise $5.75 billion through public offerings of stock and equity units to help fund its emergency from Chapter 11 bankruptcy protection. That's in addition to about $3.25 billion in private stock sales.

WATERCOOLER

SpaceX is about a week past launching astronauts for the first time but CEO Elon Musk wants employees to focus on developing the company's next-generation Starship rocket, according to an email seen by CNBC. But the Starship development program has suffered several dramatic setbacks and Musk in the email declared it "the top SpaceX priority."