Morning Brief

What to watch today: Dow looks for back-to-back gains after last week's decline

Share

BY THE NUMBERS

The Dow is set to rise at Tuesday's open, looking for a second day of gains after last week's nearly 3.3% decline. The 30-stock average Monday clawed back 229 points of Friday's 620 point drop as Wall Street appeared to shake off concerns about the speculative retail-trading mania that largely drove the market's worst weekly sell-off since October. (CNBC)

With gains Monday, the Dow and S&P 500 were once again positive for 2021, joining the Nasdaq. However, the three benchmarks remained below last month's record closing highs, with the Dow over 3% away and the S&P 500 and Nasdaq each about 2% away. Google-parent Alphabet and Amazon are set to report quarterly earnings after Tuesday's closing bell. (CNBC)

GameStop (GME) continued to lose ground in Tuesday's premarket trading, with shares of the volatile retail investor-favorite sliding 40% to around $133. The tumble follows a more than 30% drop during the regular market session Monday after last week's 400% gain, which saw shares as high as $483. (CNBC)

AMC Entertainment (AMC), another one of the highly speculative investments targeted by the Reddit crowd, dropped more than 30% in premarket. The stock rallied 277% last week alone. The drop in AMC, as well as GameStop, could be a sign that the retail trading mania has started to unwind. (CNBC Pro)

* Silver slides from 8-year peak as retail frenzy fizzles out (Reuters)

Online brokerage Robinhood said it raised another $2.4 billion from investors to weather the extreme market swings due to the trading frenzy in GameStop and other heavily shorted stocks. The overall $3.4 billion it has mobilized since Thursday exceeds its total funding amount since its founding in 2013. (CNBC)

Pfizer (PFE) reported mixed quarterly results and said it expects to sell about $15 billion in coronavirus vaccine doses this year. Adjusted fourth-quarter earnings of 42 cents per share fell 6 cents short of expectations. Revenue in Q4 rose 12% to $11.68 billion, exceeding estimates. Pfizer also raised full-year guidance. (CNBC)

* UPS jumps on strong fourth-quarter earnings as Covid drives online shopping (CNBC)
* Alibaba's cloud division profitable for the first time (CNBC)
* Exxon Mobil reports a $20 billion loss, fourth straight quarter in the red (CNBC)

IN THE NEWS TODAY

Democratic congressional leaders took the first step toward passing a sweeping coronavirus relief bill without GOP support as President Joe Biden on Monday listened to a much smaller plan from Republicans. The Republican lawmakers on Sunday put forward a $618 billion counteroffer to Biden's $1.9 trillion rescue package. (CNBC)

* GOP senator says Covid relief 'figure should not be foreordained' after Biden meeting (CNBC)

Travelers on planes and public transportation are required to wear face masks, starting Tuesday. To curb the spread of Covid, the CDC issued the mask-wearing rule late Friday, building on executive action announced by Biden on Jan. 21. The enforcement, which could include fines, will be handled by the TSA and other federal, state and local authorities. (AP)

American Airlines (AAL) CEO Doug Parker told employees that another round of furlough warnings could be coming on April 1, when payroll support for workers expires. American is among the U.S. airlines that received money from a $15 billion payroll support package in December to protect workers' jobs and salaries through March. (Reuters)

The Biden administration on Tuesday announced steps to address harm to thousands of families that were separated at the U.S.-Mexico border, expanding efforts to quickly undo relentless changes to immigration policy over the last four years. (AP)

Senate Republican leader Mitch McConnell said Rep. Marjorie Taylor Greene's embrace of conspiracy theories was a "cancer" on the GOP, as House Democrats moved to strip her of committee assignments. Incendiary comments Greene made including denying that school shootings took place and expressing support for violence have emerged in recent days. (Reuters)

* Fallen Capitol Police officer Brian Sicknick will lie in honor at US Capitol (USA Today)

SpaceX will launch four private individuals on a Crew Dragon capsule into orbit around the Earth later this year. Dubbed "the world's first all-civilian mission," the spacecraft will be commanded by tech billionaire Jared Isaacman. The mission, known as Inspiration4, seeks to raise support for St. Jude Children's Research Hospital. (CNBC)

* Rocket builder Astra to go public via SPAC at $2.1 billion valuation (CNBC)
* SPAC backed by ex-Boeing chief aims to raise $200 million in IPO (CNBC)

Ulta Beauty (ULTA) unveiled a $25 million initiative Tuesday to better reflect the country's diversity with the products it sells in stores and faces it features in advertising campaigns. The beauty retailer pledged to double the Black-owned brands in its assortment by the end of 2021. (CNBC)

* Black leaders have a lot of advice for closing the racial wealth gap (CNBC)

There will be six more weeks of winter, Punxsutawney Phil predicted as he emerged from his burrow on a snowy Tuesday morning to perform his duties. The annual Groundhog Day event came as the Northeast started to dig out from a powerful winter storm. More than 16 inches of snow dropped in New York City's Central Park, and as much as 30 inches was reported in northern New Jersey. (AP)

STOCKS TO WATCH

Harley-Davidson (HOG): The motorcycle maker reported a loss of 63 cents per share for the fourth quarter, compared with expectations of a 14 cents per share profit. Revenue was also below Wall Street forecasts, with 2020 total shipments hitting a more than 20-year low. Harley also unveiled a five-year turnaround plan aimed at generating low double-digit earnings growth through 2025.

Emerson Electric (EMR): The manufacturing conglomerate's shares rose 3.3% in premarket trading after Emerson beat estimates on the top and bottom lines for its fiscal first quarter. Emerson also made optimistic comments about a rebound in industrial demand for this year. Separately, CEO Dave Farr will step down this week after 21 years in the job, to be replaced by Emerson's automation business head Lal Karsanbhai.

SiriusXM (SIRI): The satellite radio operator's shares are up 1.4% this morning, after it reported better-than-expected revenue and earnings for its latest quarter. The company noted an expansion in paying subscribers and increased audience penetration helped by its Pandora and Stitcher units.

Cirrus Logic (CRUS): Cirrus Logic reported quarterly profit of $2.13 per share, beating the consensus of $1.86 a share. The chip maker's revenue also came in above forecasts. Cirrus Logic also announced a $350 million stock buyback.

NXP Semiconductors (NXPI): NXP earned $3.15 per share for its fourth quarter, compared to the consensus estimate of $2.10 a share. NXP's revenue came in above estimates as well. Its shares were off 1.5% in the premarket. NXP shares had jumped nearly 7% Monday in advance of the report.

BP (BP): BP reported a lower-than-expected fourth-quarter profit and posted a $5.7 billion annual loss for 2020, its first unprofitable year in a decade. BP was hit by a pandemic-related slump in demand, but does expect a 2021 recovery.

Boeing (BA): Boeing said 118 orders for its 777X aircraft can no longer be considered "firm" under accounting rules, trimming the total of orders it considers solid to 191. The company said delays in the 777X program give customers the right to terminate orders or substitute other Boeing aircraft.

Vertex Pharmaceuticals (VRTX): Vertex fell 8 cents a share shy of forecasts with quarterly earnings of $2.51 per share. The drugmaker's revenue beat consensus, however, helped by strength in its cystic fibrosis business.

WATERCOOLER

The Kingdom of Wakanda is staking out turf on the Disney+ streaming service. A television series set in the "Black Panther" world will be developed as part of a five-year, exclusive TV deal, which Disney announced Monday with filmmaker Ryan Coogler's Proximity Media company. (AP)