KEY POINTS
- Nasdaq futures firm 2% as tech stocks recoup losses
- 10-year Treasury yield softens but remains above 1.5%
- Treasury auctions kick off Tuesday amid record short bets
- Bitcoin was steady around $54,000 after hitting a two-week high on more signs of institutional interest
- Oil hovered around $65 a barrel
Stock futures rose Tuesday with tech-heavy Nasdaq futures rebounding following a slump that saw a continuing rotation out of high-growth equities.
Contracts linked to the Dow Jones Industrial Average rose 153 points, S&P 500 futures were up 37 points and futures for the Nasdaq jumped 255 points or 2%.
Apple Inc, Amazon.com Inc, Facebook Inc and Microsoft Corp jumped about 2% each in early trading.
Investors will be closely watching Treasury sales in the coming days, with the U.S. planning three debt auctions totaling $120 billion. The sales will test appetite for the safest debt after last month’s poorly bid auctions sent shockwaves throughout global markets and short bets climbed to a record.
U.S. Market Yesterday
The Dow Jones Industrial Average climbed on Monday as investors piled into economic comeback plays after Senate approval of a new Covid stimulus package, while a continuous sell-off in high-flying tech shares put pressure on the broader market.
The blue-chip benchmark gained 306.14 points, or 1%, to 31,802.44 led by Disney. At its session high, the 30-stock average jumped 650 points to hit an intraday record high. The S&P 500 erased a 1% gain to close 0.5% lower at 3,821.35. The Nasdaq Composite slid 2.4% in volatile trading to 12,609.16 as Apple dropped 4.2% and Tesla fell 5.8%. Alphabet and Netflix both slipped more than 4%.
The tech-heavy benchmark closed more than 10% below its Feb.12 closing high, falling into correction territory.
Latest News:
1) Coinbase Global Inc. shares changed hands at a roughly $90 billion value last week, in what could be the final chance for investors to trade its private stock before the cryptocurrency exchange goes public, according to people familiar with the matter.
That valuation is based on $350 a share, the price the stock was trading at on the Nasdaq Private Market auction that ended last Thursday, the people said, asking not to be identified because the information was private.
2) Wood, the founder of ARK Investment Management, said she wasn't worried about the recent drop in her funds, particularly ARK Innovation, which has fallen for three straight weeks. In fact, she said she's capitalizing on the selloff.
3) The COVID-19 vaccine from drug company Pfizer and its partner BioNTech neutralized a fast-spreading Brazilian variant of coronavirus,according to a new study.And Russia’s Sputnik V vaccine will soon beproduced in Europe.
4) Zoom founder Eric Yuan transferred $6 billion worth of his shares to unspecified beneficiaries last week,says a regulatory filing.
5) Hong Kong Stock Exchange Filing Shows: :Baidu Ipo Passes Hong Kong Stock Exchange Listing Hearing.
Stocks making the biggest moves in the premarket
Ark Innovation ETF(ARKK) shares were marked 4.6% higher in pre-market trading Tuesday, indicating an opening bell price of $115.34 each, a move that would trim its month-to-date decline to around 25.5%.Wood told CNBC late Monday that she was becoming "more optimistic" about her portfolios amid the ongoing tech sell-off.
Tesla(TSLA) – Tesla rose 5% in the premarket after falling for five straight sessions and losing 21% over that span. It's the third notable sell-off in Tesla shares in the past year, with the stock having experienced 20%-plus drops from recent highs in both March and September of 2020.
Video game retailer Gamestop(GME) was set to gain for the fifth consecutive session, up 9% at $213 premarket, building on Monday’s 41.2% gain after the company said it had tapped shareholder Ryan Cohen to lead a shift towards e-commerce.
Baidu(BIDU) – The China-based search engine giant's shares jumped 6.4% premarket following news that it won approval from the Hong Kong Stock Exchange to list its shares.
Li Auto(LI),Nio(NIO),Xpeng(XPEV) – The China-based electric vehicle makers are all planning to list in Hong Kong as soon as this year, according to people with direct knowledge of the matter who spoke to Reuters. All three are already listed on U.S. exchanges, with Hong Kong listings potentially raising a combined $5 billion. Li Auto rose 4.3% in the premarket, Nio gained 4.3%, and Xpeng jumped 5.9%.
Zoom(ZM) – Zoom CEO and founder Eric Yuan transferred roughly 40% of his stake in the video communications platform company, according to a Securities and Exchange Commission filing. The transfers – worth about $6 billion – were made to unspecified recipients from two trusts as gifts, with Zoom only saying the transactions represented part of the estate planning process for Yuan and his wife. Zoom rose 3.6% in premarket trading.
Peloton(PTON) – Peloton is expanding into the Asia-Pacific region for the first time, announcing plans to sell its fitness bicycle and interactive membership app in Australia starting in the second half of the year. Peloton share gained 4.7% in premarket action.
Stitch Fix(SFIX) – Stitch Fixlost 20 cents per sharefor its latest quarter, 2 cents a share less than analysts had anticipated. Revenue for the online clothing styler was short of Wall Street forecasts, and Stitch Fix cut guidance for the fiscal year that begins in July due to lengthened cycle times. Stitch Fix does not recognize revenue until a customer finalizes a "Fix" by returning unwanted items and paying for items kept. Stitch Fix shares tumbled 24% premarket.
Dick's Sporting Goods(DKS) – The sporting goods retailer reported quarterly earnings of $2.43 per share, 15 cents a share above estimates. Revenue beat Wall Street forecasts as well. Comparable-store sales rose 19.3%, compared to a consensus FactSet estimate of 17.1%. Dick's also forecast full-year profit of $4.40-$5.20 per share, compared to a Refinitiv consensus estimate of $5.15 a share. In addition, Dick's announced a 16% quarterly dividend hike. The stock fell 7.2% premarket.
Thor Industries(THO) – The recreational vehicle maker reported quarterly earnings of $2.38 per share, well above the consensus estimate of $1.55 a share. Revenue topped forecasts as well. Thor warned supply chain issues could have a negative short-term impact, but the company is cautiously optimistic that those issues will lessen in the second half of the year.
Children's Place(PLCE) – The children's apparel retailer reported a quarterly profit of $1.01 per share, compared to a consensus estimate of a 23 cents per share loss. Revenue also beat forecasts, and a comparable-store sales increase of 1% compares to a consensus FactSet estimate of a 10.7% slide.
Discovery Communications(DISCA) – Discovery shares rose 3.9% in the premarket, potentially extending a seven-day win streak that has seen the media company's shares gain 31% over that span. It's among heavily shorted stocks that have seen strong gains recently.
MoneyGram International(MGI) – Blockchain firm Ripple and MoneyGram have ended their partnership for unspecified reasons. Ripple had bought a $30 million stake in the payment services company in 2019, with the partnership set to last two years. Ripple CEO Brad Garlinghouse said the companies were committed to revisiting the partnership in the future. MoneyGram fell 9.1% in the premarket.
FirstEnergy(FE) – Activist investor Carl Icahn is in discussions with the utility company about potentially taking two seats on the board, according to people familiar with the matter who spoke to Bloomberg. Icahn is said to have built a "sizable" stake in FirstEnergy and wants to help the company put a federal corruption scandal and other issues behind it.
Del Taco(TACO) – Del Taco reported quarterly earnings of 20 cents per share, beating consensus by 6 cents a share. The restaurant chain's revenue came in slightly above Wall Street forecasts. Comparable-restaurant sales rose 3.8% during the quarter. Del Taco shares added 3.2% in premarket action.