5 things to know before the stock market opens Monday, June 6

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Here are the most important news, trends and analysis that investors need to start their trading day:

1. Stocks set to bounce after Wall Street’s losing week

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, June 3, 2022.

Brendan McDermid | Reuters

2. Average gas prices in the U.S. creep toward $5 per gallon

Gas prices over the $6.00 mark are advertised at a 76 Station in Santa Monica, California, May 26, 2022.

Lucy Nicholson | Reuters

Whether the U.S. has seen peak inflation or not, the surge in gas prices is showing no signs of abating. The national average at the pump reached nearly $4.87 per gallon as of Monday, according to AAA. California continued as the highest of any state, with gas costing an average of $6.34 per gallon there.

The reasons for the dizzying increases: more demand ahead of the summer driving season and a continued to rise in oil prices. In fact, West Texas Intermediate and Brent crude advanced to around $120 per barrel as traders doubted whether a 50% increase in OPEC+’s monthly output target would help ease tight supply.

3. Chinese ride giant Didi surges after report about ending probes

Budrul Chukrut | LightRocket | Getty Images

Shares of Chinese ride-hailing giant Didi surged more than 50% in premarket trading in the U.S. on Monday after The Wall Street Journal reported that regulators in China are concluding yearlong investigations into the company. According to the Journal, Chinese authorities plan as early as next week to lift a ban on Didi adding new users and to reinstate the company’s app in domestic app stores.

  • Even with Monday’s premarket gain, Didi shares have fallen about 80% since their June 2021 IPO price of $14 each. Didi said in December it will delist from the New York Stock Exchange and seek a listing in Hong Kong instead.

4. Tesla CEO Elon Musk seems to send mixed message on staffing

Tesla and SpaceX CEO Elon Musk at Tesla’s “Gigafactory” on March 22, 2022 in Gruenheide, southeast of Berlin.

Patrick Pleul | AFP | Getty Images

Tesla CEO Elon Musk said Saturday the electric vehicle maker’s total head count will increase over the next 12 months, but the number of salaried staff should be little changed. Those comments seemed to backtrack from last week’s email to employees that said job cuts of 10% were needed. In a separate email to executives, Musk said he has a “super bad feeling” about the economy. Tesla shares jumped 3% in Monday’s premarket after dropping 9% on Friday.

  • When asked about Musk’s remarks, President Joe Biden said Friday that while the Tesla CEO talked about economic fears and reductions, Ford increased its investment in building new EVs, with an additional 6,000 union employees in the Midwest.

5. JetBlue increases its bid to buy low-cost Spirit Airlines

LaGuardia International Airport Terminal A for JetBlue and Spirit Airlines in New York.

Leslie Josephs | CNBC

Spirit Airlines jumped 6% in the premarket after JetBlue on Monday sweetened its bid for the ultra low-cost carrier. JetBlue said in a filing that it would increase its breakup fee for the deal to $350 million and pay part of that as a $1.50-per-share dividend if the deal were to be consummated. In all, that increases the value of JetBlue’s offer to $31.50 per Spirit share.

  • JetBlue, whose shares were unchanged, previously offered $30 per share and a $3 kicker if Spirit entered into negotiations. Spirit rejected that, favoring a lower bid from Frontier Airlines, on the thought that regulators would not approve a JetBlue combination.
  • Last week, the parent of Frontier agreed to pay a breakup fee of $250 million on its deal. Frontier shares dropped 1.6% in Monday’s premarket. Spirit was set to vote on the Frontier offer on Friday.

— CNBC’s Arjun Kharpal and Lora Kolodny as well as Reuters contributed to this report.

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