BY THE NUMBERS
U.S. stock futures fell Tuesday, one day after the Dow Jones Industrial Average and S&P 500 surged to closing records as strong U.S. job growth and solid service sector data raised expectations for a swift recovery in the Covid-damaged economy. (CNBC)
The Nasdaq’s rise Monday brought the index within 2.8% of its record close in February. Tech stocks got a boost from a continued easing in the 10-year Treasury yield. The rapid spike in market rates in 2021, most recently a run of 14-month highs, knocked growth stocks, many of them tech names, as higher borrowing costs erode the value of future profits and squeeze market valuations. (CNBC)
On today’s economic calendar, the Labor Department releases its monthly JOLTS, job opportunities and labor turnover survey, at 10 a.m. ET. Economists expect 7 million job openings as of the end of February, up slightly from 6.9 million the previous month. (CNBC)
IN THE NEWS TODAY
Credit Suisse (CS) announced several high-level staff departures and proposed a cut to its dividend in the fallout from the Archegos Capital saga. The Swiss-based lender now expects a first-quarter pretax loss of around $960 million, after taking a $4.7 billion charge as a result of the U.S. hedge fund’s meltdown. (CNBC)
The value of the entire cryptocurrency market topped $2 trillion for the first time Monday, driven by a rally in ether, the second-largest digital coin, which alone has a market value of more than $240 billion. Bitcoin accounts for more than $1 trillion of the entire crypto market cap. (CNBC)
White House chief medical advisor Dr. Anthony Fauci warned on Monday that Americans should continue to be vigilant and adhere to public health measures as warmer summer months approach. Fauci also said that Americans should continue to get both doses of the Pfizer (PFE) and Moderna (MRNA) Covid-19 vaccines, despite a recent study that suggests only one dose may be enough. (CNBC)
* Moderna’s Covid vaccine production to double at contract manufacturer Catalent (WSJ)
* Norwegian Cruise Line CEO on how ships can safely set sail once again (CNBC)
* Qatar Airways CEO says Covid vaccines are likely to be required for travel (CNBC)
According to the office of Senate Majority Leader Chuck Schumer, D-N.Y., the Senate parliamentarian ruled the chamber can use budget reconciliation an additional time to pass legislation without Republican votes. Democrats are trying to pass President Joe Biden‘s more than $2 trillion infrastructure plan, and they aim to push through an economic recovery bill. (CNBC)
Efforts to bring the United States back into the 2015 deal on Iran’s nuclear program stepped up a gear Tuesday as Iran and the five world powers still in the accord were meeting in Vienna while the U.S. is due to start indirect talks with Tehran. (AP)
Major League Baseball plans to relocate the All-Star Game to Coors Field in Denver after pulling this year’s Midsummer Classic from Atlanta over objections to sweeping changes to Georgia’s voting laws, according to a person familiar with the decision. (AP)
Goldman Sachs (GS), Starbucks (SBUX) and a range of other organizations across the U.S. announced Tuesday a collaborative effort aimed at narrowing the racial wealth gap between Black and white Americans. The initiative, called NinetyToZero, is the latest corporate action in the past year focused on addressing racial inequality. (CNBC)
Topps, best known for its baseball cards and Bazooka candy line, has agreed to go public through a merger with the Mudrick Capital Acquisition Corporation II (MUDS) special purpose acquisition company, valuing Topps at $1.3 billion. Former Disney CEO Michael Eisner will stay on as Topps’ chairman. (CNBC)
STOCKS TO WATCH
Tesla (TSLA) 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. Tesla shares closed Monday at $691 each.
GameStop (GME) stock is down 1% in Tuesday’s premarket trading after a volatile session Monday following news that the video game retailer planned to issue up to 3.5 million shares.
Signet Jewelers (SIG) announced a deal to buy jewelry subscription services Rocksbox for an undisclosed amount.
Cara Therapeutics (CARA) shares surged 11.4% premarket following news that the biopharmaceutical company’s stock will be added to the S&P SmallCap 600 index, effective on Wednesday.
Illumina (ILMN) 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) shares gained 1.5% 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.
Energy producer Phillips 66 (PSX) 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 AiWrlines (LUV) 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.
Beijing-based Niu Technologies (NIU) 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% in premarket trading.
Credit Suisse named BlackRock (BLK) a top pick, saying it expects “robust organic growth” from the world’s largest money manager, stemming from an attractive business mix.
The Gonzaga Bulldogs ended their nearly perfect season last night with an out-of-synch 86-70 drubbing at the hands of the Baylor University Bears, who claimed their first NCAA men’s basketball championship. The loss ended Gonzaga’s hopes to be the first unbeaten national champion since Indiana did it in 1976. (AP)