Here are the top news, trends, and analysis investors need to get their trading day started:
1. Nasdaq falls to lows after Tepper comments
Scaffolding across from the New York Stock Exchange (NYSE) in the financial district of New York on Friday, March 5, 2021.
Michael Nagle | Bloomberg | Getty Images
US stock futures were mixed on Monday, with a drop in Nasdaq and tech names indicated to kick off the new week after Friday’s big turnaround. Stock futures fell from their lows after CNBC reported that David Tepper is becoming bullish on stocks and believes the recent rapid rate hike will stabilize. Dow futures got higher.
Tesla lost more than 1% in the pre-market after closing below $ 600 per share for the first time since early December on Friday. The stock has lost a third of its value since its all-time high in late January.
The Dow Jones Industrial Average, S&P 500 and Nasdaq lost all three sessions on Friday with strong advances. During the week the Dow and S&P 500 rose 1.8% and 0.8%, respectively. However, the Nasdaq fell 2% last week. The Dow and S&P 500 are up nearly 3% and 2.3%, respectively, since the start of the year. The Nasdaq was just above breakeven before opening on Monday.
Tepper, founder of Appaloosa Management, said Monday it was very difficult to be bearish on stocks right now and thinks the government bond sell-off that pushed interest rates so high is likely over. Another bullish catalyst for stocks in the near future is Tepper’s newly-approved Senate stimulus package, the comments of which are known to move the markets, said CNBC’s Joe Kernen.
2. Government bond yields rise after Senate Covid bill is passed
U.S. Senate Majority Leader Senator Chuck Schumer (D-NY) speaks during a weekly press conference at the U.S. Capitol on March 2, 2021 in Washington, DC.
Alex Wong | Getty Images News | Getty Images
The Senate’s passage of the $ 1.9 trillion Covid Relief Act on Saturday was insufficient to move stocks into Green Monday as further economic stimulus in addition to an already recovering economy fueled inflation concerns . This translates into higher bond yields on Monday. The 10-year yield on government bonds is 1.6%, below Friday’s one-year high. The 10-year yield has risen rapidly since late January, gaining more than 0.5% in just over a month.
3. Biden Says Direct Payments will soon reach $ 1,400
United States President Joe Biden speaks during a roundtable meeting with Americans who will benefit from COVID-19 pandemic relief efforts, which are part of the U.S. rescue plan on March 5, 2021 in Washington, DC.
Samuel Corum | Getty Images
The Democratic House intends to pass the Senate-approved Covid stimulus package on Tuesday and then send it to President Joe Biden for signature. The bill passed in the Senate on Saturday provides for a lower compromise for federal unemployment benefits and without an increase in the federal minimum wage. Legislation provides for direct payments of up to $ 1,400 to most Americans, which Biden says could go out within two weeks on Saturday.
4. Stocks to watch: Disney, Comcast, GameStop, GE
An entrance area to Disneyland is empty on September 30, 2020 in Anaheim, California.
Mario Tama | Getty Images
Disney shares rose more than 2% on the Monday leading up to trading after California officials released theme parks on Friday to open with reduced capacity on April 1. They closed almost a year ago due to the pandemic. The contract includes Disneyland in the southern part of the state, Comcast’s Universal Studios Hollywood, and others. Disney World in Florida and Universal Studios Orlando opened with capacity restrictions in the summer. Comcast, the parent company of NBCUniversal and CNBC, fell ahead of the market.
A man watches GameStop on 6th Avenue in New York on February 25, 2021.
John Smith | Corbis News | Getty Images
GameStop’s shares rose about 11% on the Monday before entering the market after Bloomberg reported the company tapped board member Ryan Cohen to steer the video game retailer’s transition to an e-commerce business. Cohen, a major GameStop investor and founder of online pet retailer Chewy, will lead a board task force on digital change.
Larry Culp, CEO of General Electric
Scott Mlyn | CNBC
According to The Wall Street Journal, General Electric is on the verge of a $ 30 billion deal to combine its aircraft leasing business with Ireland’s AerCap Holdings. GE Capital Aviation Services is one of the world’s largest jet leasing companies, leasing passenger aircraft from companies such as Boeing and Airbus. GE shares rose roughly 13.5% on the Monday leading up to its IPO. The AerCap share gained 12%.
5. Oil prices rise after the attack on facilities in Saudi Arabia
Brent crude, the international oil benchmark, rose above $ 70 a barrel on Monday for the first time in more than a year. The surge came after Saudi Arabia said on Sunday that its facilities in Saudi Aramco were attacked by rockets and drones. Yemen’s Iranian-centric Houthi movement took responsibility for the attack. West Texas Intermediate Crude Oil, the US benchmark, also rose, trading above $ 66 on a nearly two-year high.
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