- Futures ease after record rally on brightening economic outlook
- Archegos-linked stocks fall after Credit Suisse block trades
U.S. stock index futures fell on Tuesday as investors locked in some gains after the S&P 500 and the Dow closed at record highs on renewed recovery hopes.
At 8:05 a.m. ET, Dow E-minis were down 26 points, or 0.08%, S&P 500 E-minis were down 6 points, or 0.15% and Nasdaq 100 E-minis were down 20.50 points, or 0.15%.
ViacomCBS Inc. fell in premarket trading along with other stocks linked to the Archegos Capital Management implosion after Credit Suisse Group AG took a 4.4 billion franc ($4.7 billion) writedown and was said to have unloaded more than $2 billion in block trades. The dollar edged higher and Treasury yields were steady. European stocks, meanwhile, rose to a record as markets reopened after Monday’s holiday across the region.
Progress in President Joe Biden’s new infrastructure proposal and the start of the earnings season in the coming weeks could dictate the course of stock markets, analysts said.
Later in the day, investors will turn to a reading of U.S. job openings for February. The data follows blowout employment as well as service sector reports for March.
Stocks making the biggest moves in the premarket:
Illumina (ILMN) – Illumina issued preliminary current-quarter and full-year guidance that exceeded current analyst estimates. The life sciences company said its projected results are being driven by record orders in its gene-sequencing and related businesses. Illumina jumped 9.2% in premarket action.
Snap (SNAP) – Snap shares gained 2.7% in premarket action following an upgrade at Atlantic Equities, which now rates the Snapchat parent’s stock at “overweight” vs. the prior “neutral.” The firm cites valuation as a key factor, as well as Snap’s transformation from a messaging-centric platform to a broad content platform.
Tesla (TSLA) – Tesla stock is only worth $150 per share, according to Roth Capital senior research analyst Craig Irwin. Irwin called Tesla only a “minor player” in the U.S. and European markets, telling CNBC that people wrongly assume that Tesla has no competition.
GameStop (GME) – The videogame retailer’s stock is up 1.4% in premarket trading after a volatile session Monday following news that GameStop planned to issue up to 3.5 million shares.
Niu Technologies (NIU) – The Beijing-based company reported sales of 149,649 e-scooter sales during its first quarter, compared to 40,160 in the year-ago quarter. Niu Technologies shares rose 1.8% in premarket trading.
Credit Suisse (CS) – The bank will take a $4.7 billion hit from its dealings with hedge fund Archegos Capital Management, and has announced the departure of Chief Risk Officer Lara Warner and investment banking head Brian Chin. Credit Suisse also launched an investigation into the Archegos-related losses.
Property Solutions Acquisition Corp (PSAC) – Blank check company PSAC surged 11.6% in premarket trading after Faraday Future(FF) submitting the listing documents to the SEC and planning to land on NASDAQ as soon as May.
Moderna (MRNA) – Moderna struck an agreement with contract manufacturer Catalent(CTLT) to nearly double output of Moderna’s Covid-19 vaccine at Catalent’s Bloomington, Indiana, plant, according to The Wall Street Journal.
Square (SQ) – Fidelity Investments, Square Inc. and several other financial firms are forming a new trade group that aims to shape the way bitcoin and other cryptocurrencies are regulated.The stock rose 0.2% in the premarket.
Cara Therapeutics (CARA) – Cara Therapeutics shares surged 11.7% premarket following news that the biopharmaceutical company’s stock will be added to the S&P SmallCap 600 index, effective on Wednesday.
Phillips 66 (PSX) – The energy producer said it will report a larger-than-expected first-quarter loss, stemming from the severe winter weather in central and southern U.S. states that crippled its Gulf Coast petrochemical operations. Phillips fell 1.3% in premarket trading.
Southwest Airlines (LUV) - Southwest recalled 209 pilots from voluntary leave, with plans to return them to active duty on June 1. The move comes in anticipation of a summer rebound in travel demand.
BlackRock (BLK) – Credit Suisse named the asset management firm a “top pick,” saying it expects “robust organic growth” from BlackRock stemming from an attractive business mix.
Signet Jewelers (SIG) – The jewelry retailer announced a deal to buy jewelry subscription services Rocksbox for an undisclosed amount.