- Futures mixed after Dow, S&P 500 set records.
- The central bank willrender its verdict on monetary policy on Wednesday, which is widely expected to confirm a bias for more easy policy.
- AstraZeneca, Moderna, Fintech Acquisition & more making the biggest moves in the premarket.
(March 16) U.S. stock futures traded mixed in early pre-market trade after the Dow Jones climbed around 175 points in the previous session. The Federal Open Market Committee will start its two-day policy meeting today.
At 7:54 a.m. ET, Futures for the Dow Jones Industrial Average fell 17 points to 32,833.00, while the Standard & Poor’s 500 index futures rose 4.5 points at 3,962.75. Futures for the Nasdaq 100 index rose 77.25 points to 13,155.75.
With the global economy increasingly on a path out of the pandemic, focus turns to the Fed’s communications on Wednesday, which will include fresh economic and interest-rate projections. Reflation trades stand to benefit if the central bank maintains a hands-off approach to the recent rise in yields. Bets on a faster economic recovery have already helped push one market gauge of inflation to its highest level since 2008, and a renewed climb in yields could spur the rotation from growth to value stocks.
“Fundamentally, the focus will still be on the growth recovery in the coming months and macropolicy -- both fiscal and monetary -- will continue to be supportive,” Cecilia Chan, chief investment officer for Asia Pacific at HSBC Asset Management, told Bloomberg TV.
Stocks making the biggest moves in the premarket trading
1) AstraZeneca(AZN) – AstraZeneca’s Covid-19 vaccine will be recommended for people aged 65 and older in Canada, according to a CBC report. That news comes after several European countriessuspended use of the vaccine, amid reports of side effects. Both the World Health Organization and AstraZeneca say the vaccine is safe. AstraZeneca gained 2.3% in premarket trading.
2) Moderna(MRNA) – The drugmaker began a study of its Covid-19 vaccineinvolving children aged 6 months to 11 years. Moderna’s vaccine – along withJohnson & Johnson’s(JNJ) – is currently authorized for adults 18 and older, while the vaccine fromPfizer(PFE) andBioNTech(BNTX) is allowed for people 16 and older. Moderna shares rose 1.8% premarket.
3) Starbucks(SBUX) – The coffee chain’s stock rose 1.6% in the premarket after BTIG upgraded it to “buy” from “neutral.” BTIG said a recovery by Starbucks is gaining steam and that stimulus checks could provide an additional boost.
4) Designer Brands(DBI) – The footwear and accessories retailer formerly known as DSW reported a quarterly loss of 53 cents per share, smaller than the 68 cents a share loss that analysts were anticipating. Revenue was below consensus, although comparable-store sales fell slightly less than expected. The company said the sequential improvement in performance continued during the quarter.
5) Fintech Acquisition(FTCV) – The special purpose acquisition company will combine with trading platform eToro and take the Robinhood rival public. The combination will have an estimated value of $10.4 billion. Shares of Fintech Acquisition surged 14.7% in premarket trading.
6) DraftKings(DKNG) – Shares of the sports betting company rose 1.2% in premarket action after it priced an upsized debt offering of $1.1 billion in convertible senior notes. DraftKings had originally planned a $1 billion offering.
7) Walgreens(WBA) – Walgreens was sued by the Arkansas attorney general, who accused the drugstore and pharmacy operator of helping fuel the opioid crisis in the state. Walgreens said health and safety have always been the primary focus of its pharmacists and that it would defend itself vigorously against the suit.
8) Nikola(NKLA) – Nikola fell 2.9% in premarket trading after it filed to raise $100 million through a secondary stock offering. The electric vehicle maker said it intends to use the proceeds for general corporate purposes.
9) AbbVie(ABBV) – The drugmaker is in talks to sell a portfolio of women’s drugs worth approximately $5 billion, according to sources familiar with the matter who spoke to Reuters. The treatments were acquired last year through AbbVie’s $63 billion purchase of Allergan.
10) News Corp(NWSA) – News Corp signed a content supply deal withFacebook(FB) in Australia, resolving a dispute that had seen Facebook withhold all media content in Australia for a week in February. News Corp shares jumped 1.9% in the premarket.
11) Alibaba(BABA) – The e-commerce giant is being pressured by the Chinese government to dispose of its media assets, according to people familiar with the matter who spoke to The Wall Street Journal. The government is said to be concerned with Alibaba’s sway over public opinion. Shares fell 1% in premarket trading.
12) Ulta Beauty(ULTA) – The cosmetics retailer’s stock fell 1% premarket after Guggenheim downgraded it to “neutral” from “buy.” Guggenheim cites profit margin uncertainty amid rising competitive pressure on digital platforms.
13) Avis Budget(CAR) – The car rental company’s stock was downgraded to “equal-weight” from “overweight” at Morgan Stanley. The firm notes a more than 90% increase in the stock year-to-date, which it said prices in the improvements in Avis Budget’s earnings performance. Shares were down 1.2% in premarket trading.
These are some key events this week:
Fed Chair Jerome Powell will likely reaffirm his steady policy stance at the Fed policy meeting Wednesday.Bank of England rate decision Thursday. BOE is expected to leave monetary policy unchanged.Bank of Japan monetary policy decision and Governor Haruhiko Kuroda briefing Friday.
These are the main moves in markets:
Currencies
The Bloomberg Dollar Spot Index declined 0.1%.The euro rose 0.2% to $1.195.The British pound sank 0.3% to $1.386.The onshore yuan was little changed at 6.498 per dollar.The Japanese yen was little changed at 109.08 per dollar.
Bonds
The yield on 10-year Treasuries fell one basis point to 1.59%.The yield on two-year Treasuries climbed less than one basis point to 0.15%.Germany’s 10-year yield dipped one basis point to -0.34%.Britain’s 10-year yield sank two basis points to 0.777%.Japan’s 10-year yield declined one basis point to 0.105%.
Commodities
West Texas Intermediate crude fell 1.4% to $64.50 a barrel.Brent crude dipped 1.4% to $67.95 a barrel.Gold strengthened 0.1% to $1,733.97 an ounce.