Morning Brief

What to watch today: Dow set to drop for second day after Friday's record

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BY THE NUMBERS

The Dow was set to drop at Tuesday's open, one day after the 30-stock average lost 148 points on concerns about spikes in coronavirus cases and uncertainty over new stimulus out of Washington. Monday's Dow decline ended a four-session winning streak, including a record high close Friday. The S&P 500 on Monday dipped from Friday's record close. However, the Nasdaq edged higher Monday for another record close. (CNBC)

Shares of red-hot Tesla fell 1% in premarket trading after the electric auto maker on Tuesday unveiled plans for a $5 billion capital raise. It's the second such move in three months as Tesla looks to cash in on its meteoric stock rally of more than 650% this year. Shares hit another intraday all-time Monday. (CNBC)

Stitch Fix (SFIX) shares rocketed 35% higher in the premarket. The online clothing styling firm reported a quarterly profit of 9 cents per share, compared to forecasts of a 20 cents per share loss. Revenue also best forecasts. Separately, Stitch Fix announced the hiring of former Amazon (AMZN) executive Dan Jedda as its chief financial officer. (CNBC)

IN THE NEWS TODAY

Two days before the FDA's vaccines committee meets to consider the Pfizer-BioNTech Covid-19 candidate for emergency use authorization, the agency on Tuesday released a document evaluating the companies' clinical trial data. The FDA said the data did not raise safety concerns. A week after Thursday's meeting, the FDA committee is set to consider Moderna's coronavirus vaccine. (CNBC)

The U.K. on Tuesday began rolling out the Pfizer-BioNTech vaccine to the public. Ninety-year-old Margaret Keenan made history as the first person in the world to receive the vaccine outside of trial conditions. Approved by U.K. drug regulators last week, it will be given to front-line health-care workers, nursing home workers and people over 80, before it's available more widely among the U.K. population. (CNBC)

* Bill Gates says six Covid vaccines could be available by spring 2021 (CNBC)

President Donald Trump is expected to sign an executive order Tuesday designed to ensure that U.S. efforts to assist other countries in vaccinating their populations against Covid-19 take on a lower priority than domestic inoculations. (CNBC)

Pfizer and Moderna, which have vaccines under consideration by the FDA, declined Trump's invitation to attend Tuesday's "Vaccine Summit" at the White House. Invitees included drug distributors, pharmacies and logistics companies such as McKesson, Walgreens Boots Alliance, CVS Health, UPS and FedEx. (CNBC)

* U.S. declined Pfizer offer for additional Covid vaccine doses, says board member Dr. Scott Gottlieb (CNBC)
* Dr. Vin Gupta: U.S. should be in a Covid disaster mindset for next two months (CNBC)

Lawmakers on Capitol Hill aim to extend federal government funding, which runs out Saturday, for an additional week. They're hoping to buy more time to pull together an appropriations spending deal and a coronavirus stimulus measure. (CNBC)

American Airlines (AAL) will start offering travelers $129 at-home Covid-19 tests, results that can help them avoid quarantines as long as two weeks. The initiative, which starts Wednesday for travel from Dec. 12, is the latest from airlines to try to encourage bookings. (CNBC)

Apple (AAPL) on Tuesday announced AirPods Max, new over-ear noise-canceling headphones that will launch on Dec. 15 for $549. The AirPods Max may be appealing to customers who didn't want in-ear headphones, such as the AirPods. (CNBC)

Satellite radio service provider Sirius XM Holdings (SIRI) said it's signed a new five-year deal with celebrity Howard Stern to continue to produce and host his popular "Howard Stern Show." (Reuters)

A second U.S. judge late on Monday granted a preliminary injunction blocking the U.S. Commerce Department from imposing restrictions on Chinese-owned short video sharing app TikTok that would have effectively barred its use in the U.S. (Reuters)

Uber (UBER) sold its self-driving auto business to autonomous driving startup Aurora Innovation. As part of the deal, Uber will make a $400 million cash investment in Aurora and hold a 26 percent stake, with Uber CEO Dara Khosrowshahi joining Aurora's board of directors. Uber shares shed 3% in the premarket. (CNBC

President-elect Joe Biden will nominate retired four-star Army general Lloyd J. Austin to be secretary of defense, according to three people familiar with the decision. If confirmed by the Senate, Austin would be the first Black leader of the Pentagon. (CNBC)

Chuck Yeager, the steely "Right Stuff" test pilot who took aviation to the doorstep of space by becoming the first person to break the sound barrier more than 70 years ago, died on Monday at the age of 97. (Reuters)

STOCKS TO WATCH

AutoZone (AZO): The auto parts retailer reported quarterly profit of $18.61 per share, compared to a consensus estimate of $17.77 a share. AutoZone's revenue was in line with Wall Street forecasts, but its same-store sales increase of 12.3% was above the 10.9% jump forecast by analysts polled by FactSet.

Thor Industries (THO): The recreational vehicle maker reported quarterly earnings of $2.05 per share, beating the consensus estimate of $1.56, with revenue above estimates as well. Thor said it has increased production to accommodate higher demand, and that it is working through what it considers temporary supply chain issues. Thor's shares were up nearly 2% in the premarket.

Palantir Technologies (PLTR): Shares of the data analytics company are getting a boost for a second day after it won a $44 million contract from the Food and Drug Administration. Palantir shares had jumped 21% Monday when the news first broke. Shares were up another 3.5% in the premarket.

U.S. Steel (X): The steelmaker will acquire the part of Big River Steel that it doesn't already own for $774 million, after buying a 49.9% stake in October 2019. The move gives U.S. Steel accessed to advanced steel production techniques already used by key competitors. The company's shares were up 3% in the premarket.

Toll Brothers (TOL): Toll Brothers beat estimates by 31 cents a share, with quarterly earnings of $1.55 per share. The luxury home builder's revenue beating estimates as well. The company's results were helped by lower mortgage rates as well as demand for more living space driven by the pandemic, with CEO Douglas Yearly saying the housing market was the strongest he's seen in his 30 years at the company. Its shares were down nearly 3% in premarket trading.

Qiagen (QGEN): Qiagen raised its outlook for both 2020 and 2021, with the provider of medical testing technology benefiting in particular from demand for Covid-19 testing products. Shares were up 2% in the premarket.

Goldman Sachs (GS): Goldman signed an agreement to take full ownership of its China joint venture, according to multiple reports. Goldman's purchase – which still needs the approval of China regulators – would make it the first global banking firm to own 100% of its securities business in China.

Northrop Grumman (NOC): Northrop Grumman is selling its federal information technology and mission support services unit to private-equity firm Veritas Capital for $3.4 billion in cash. The defense contractor said it would use the cash primarily for share repurchases, and to retire debt as well.

HealthEquity (HQY): HealthEquity reported a quarterly profit of 41 cents per share, 5 cents a share above estimates. The manager of health-care savings accounts seeing revenue beat estimates as well. The company said membership grew 11% compared to a year earlier.

Coupa Software (COUP): Coupa Software reported quarterly earnings of 18 cents per share, compared to a consensus estimate of 3 cents a share. Revenue also came in above Wall Street forecasts. The provider of expense management software also issued an upbeat outlook, with the Covid-19 pandemic helping increase demand for its services. Shares of Coupa jumped 5% in the premarket.