Stocks - JPMorgan up in Premarket After Dimon's Annual Letter

By Geoffrey Smith 

Investing.com -- Stocks in focus in premarket trading on Monday, April 6th.

• JPMorgan (NYSE:JPM) stock was up 4.6%, despite the admission in CEO Jamie Dimon’s annual letter to shareholders that an extreme recession could lead it to cut its dividend for the first time in its history.
• Dimon said that was still an “unlikely scenario”, but warned that a major recession means that we are exposing ourselves to billions of dollars of additional credit losses as we help both consumers and business customers through these difficult times.”
• Slack Technologies (NYSE:WORK) stock was down 0.3% after filing for a $600 million convertible bond due in 2025.
• The choice of convertible debt, along with the five-year maturity, gives the company immediate relief on financing needs, while enabling it to put off a decision on diluting shareholders until well after the Covid-19 outbreak is past.
• Tesla (NASDAQ:TSLA) stock was up 5.9% after an upgrade from analysts at Jefferies.
• JetBlue Airways (NASDAQ:JBLU) stock was up 1.2% after the company’s CEO said in a letter to employees that the airline is burning through around $10 million a day.
• Rolls Royce (LON:RR)  (OTC:RYCEY) ADRs were set for a big bounce at opening after the U.K. engine maker said it had secured an additional 1.5 billion pound ($1.8 billion) revolving credit facility, bringing its overall liquidity to 6.7 billion pounds, to give it headroom during a potential prolonged downturn.
• The company also cancelled its dividend for 2019 and warned that it expected lower volumes of maintenance and overhaul work in future, amidst fears that the aviation industry will not return to its previous growth trajectory for many years.
• Apple (NASDAQ:AAPL) stock rose 4.0% after the company said it is now producing some 1 million face-shields a month.
• Allstate (NYSE:ALL) stock was in focus after the insurer said it will return more than $600 million in auto insurance premiums to customers to compensate them for reduced driving during the coronavirus outbreak.
• Most customers will receive a 15% rebate of their monthly premium in April and May, the company said.
• Zoom Video (NASDAQ:ZM) stock fell 10.8% to a new two-week low after CEO and founder Eric Yuan admitted to security failings in the company's software that had exposed it to 'Zoombombing'. Yuan also admitted that the company's boast of end-to-end encryption won't be a reality for several months.