Investors keep calm; Trump’s budget; Take-Two tumbles

1. Mourning for Manchester: A deadly attack outside an Ariana Grande concert at Manchester Arena in the U.K. killed at least 22 people, including children.

Manchester Police say the bombing was carried out by a lone suspect who died at the scene, but they are still investigating whether the bomber may have been part of a wider network.

It was the worst terror attack in the U.K. since the London bombings in 2005 and came less than three weeks before a general election on June 8.

Political parties suspended their campaigns and news of the attack cast a shadow over financial markets.

Most Asian markets ended the day with losses and the mood was calm but cautious in Europe. London’s FTSE 100 index edged a little higher as the British pound weakened. Other European indexes made modest gains.

U.S. stock futures are edging up a bit. Crude oil and metal prices are slipping.

2. Trump’s budget: The Trump administration is set to unveil its budget Tuesday. It will cut hundreds of billions of dollars from programs such as Medicaid, food stamps and disability insurance.

Mick Mulvaney, Trump’s budget director, spelled it out for reporters on Monday. The largest savings in the budget would come from these items:

1. Cuts to Medicaid (Over $600 billion in the next decade)
2. Cuts to food stamps, known as SNAP ($193 billion over 10 years)
3. Cuts to student loans ($143 billion over 10 years)
4. Cuts to federal worker retirement programs ($63 billion over 10 years)

Nearly 1 in 5 Americans use Medicaid, and over 1 in 10 are on food stamps.

3. Earnings: Take-Two Interactive is among the key firms reporting earnings on Tuesday morning.

The company behind the popular video game Grand Theft Auto has already disappointed investors after announcing that the release of its new game — Red Dead Redemption 2 — will be delayed until the spring of 2018.

That news pushed Take-Two shares sharply lower overnight.

Shares in the healthcare products firm Perrigo are also dropping after the company had to restate its 2016 earnings. The company is holding a conference call this morning to discuss the revised results.

Intuit, the maker of tax preparation software, is scheduled to post earnings after the close. Investors will be looking to see if Intuit weighs in on Trump’s efforts to rewrite the tax code.

4. Economics: The U.S. Census Bureau will report new home sales data for April at 10 a.m. ET. Big gains in March were driven by a 26% sales increase in the Northeast.

But economists believe new home sales would have cooled off in April.

5. Coming this week:
Tuesday — President Trump’s budget to be released; Amazon annual shareholder meeting
Wednesday — Existing home sales numbers; Earnings from Tiffany
Thursday — Oil ministers from OPEC nations meet; Earnings from Abercrombie & Fitch, Best Buy and Costco; Facebook founder Mark Zuckerberg gives a commencement speech at Harvard
Friday — Second estimate of first-quarter U.S. GDP

'Terror at the arena': Shock over Manchester attack ripples through global media
Walmart announces guaranteed pay for military workers

Leave a Reply