US stock indices are set to slightly pare gains on the last day
of the second quarter. Investors will closely watch economic
indicators on housing and manufacturing and the US government's
BNP Paribas SA's
(EPA:BNP) flouting of international sanctions.
After ending Friday higher, futures pointed to slight losses on
Monday. Futures on the
Dow Jones Industrial Average
(INDEXDJX:.DJI) fell 0.20% to 16,724.
(INDEXSP:.INX) futures sank 0.16% to 1,948.80, capping off a
quarter where the index rose over 5.5%.
(INDEXNASDAQ:.IXIC) futures ticked down 0.02% to 3,830.75.
Later this morning, the Institute for Supply Management will
release its monthly PMI report on business conditions in the
Chicago area. Economists expect the indicator to come in at 64 for
June, a 1.5% drop from last month. Investors will also get an
update on the housing market. The National Association of Realtors'
Pending home sales index is expected to show a 1% rise in May after
gaining 0.4% in April.
In company news, BNP Paribas, France's largest bank, faces a
settlement of $8.9 billion for skirting economic sanctions,
according to reports. The company is under fire for doing business
with Iran, Sudan, and banned countries. Such a fine would be by far
the largest that the US has exacted from a foreign financial firm.
Authorities are also reportedly considering barring BNP Paribas
from clearing dollar trades for a year, starting in 2015. The firm
is likely to cut its dividend and sell off bonds to pay the fine.
The US Justice department will announce it decision later today.
) could suffer today after it was revealed that it conducted a
psychological test on hundreds of thousands of users in January
2012. The test tracked users' reactions to positive and negative
material in the News Feed section of the site. While the study
appears to have been legal, it might see some backlash from users.
are down just 0.31 in
Over the weekend,
American Apparel Inc.
(NYSEMKT:APP) said that it will adopt a one-year "poison pill" to
ensure that Dov Charney, its founder, president, CEO, and
largest stakeholder, cannot regain control of the company. The
retailer recently suspended Charney amidst multiple allegations of
sexual harassment and misallocation of corporate funds. Charney
denies such wrongdoing, and registered his interest in reacquiring
the company in an SEC filing. The filing also reveals that Charney
owns 27.2% of the company. After surging nearly 30% on Friday,
American Apparel shares are down 13% in pre-market trading.
) is preparing to pay damages to victims of crashes caused by
faulty ignition switches. The automaker hired a compensation expert
to distribute money to the families. The total payout is expected
to reach the billions.
In international news, Argentina may miss payments to international
creditors today, but it has a 30-day grace period before going into