Morning Brief

Stocks set to fall after Tuesday's turnaround on Wall Street

Share

BY THE NUMBERS

U.S. stock futures turned lower Wednesday, a day after Wall Street's wild ride that saw the Nasdaq claw back nearly all of a nearly 4% loss to close down just 0.5%. The S&P 500 reversed a 1.8% decline to close up slightly, breaking a five-session losing streak. The Dow Jones Industrial Average wiped off a drop of 360 points, or more than 1%, to close modestly higher for the third straight session. (CNBC)

* Today's biggest analyst calls of the day: Square, Snap, Mattel, American Eagle (CNBC)

Tuesday's turnaround, especially in tech stocks, came after Federal Reserve Chairman Jerome Powell told the Senate Banking Committee that inflation is still "soft" and the economic outlook is still "highly uncertain" due to the pandemic. That eased fears of a central bank policy change. Powell appears before the House Financial Services Committee on Wednesday. (CNBC)

* Treasury yields rise slightly ahead of Powell’s round-two on Capitol Hill (CNBC)

On today's economic calendar, the government issues January new home sales at 10 a.m. ET, with forecasts calling for a 0.9% gain to an annual rate of 850,000 units. New home sales had risen 1.6% in December. (CNBC)

* Mortgage applications drop 11% as rates spike and Texas outages dent demand (CNBC)

Lowe's shares rose 2% in premarket trading after the home improvement retailer said Wednesday its fourth-quarter same-store sales climbed 28% as consumers spent more on home projects during Covid. Adjusted quarterly earnings of $1.33 per share on revenue of $20.31 billion beat expectations. (CNBC)

IN THE NEWS TODAY

Tesla's (TSLA) recovery in premarket trading moderated after staging a major comeback Tuesday. At one point, as bitcoin prices sank, shares plunged 13%. Tesla recently disclosed an investment in bitcoin. By Tuesday's closing bell, it recouped most of those losses to finish down only 2.2%. (CNBC)

* Cathie Wood bought a ton more Tesla in Tuesday’s swings, possibly sparking a turnaround (CNBC Pro)
* High-profile SPAC bounces after it craters on plan to merge with Tesla rival Lucid (CNBC)

Bitcoin climbed back above the $50,000 on Wednesday, after a big sell-off earlier this week. Bitcoin is up more than 70% year to date and over 400% in the last 12 months. Square (SQ) said Tuesday it bought $170 million worth of bitcoin. The fintech firm run by Twitter CEO Jack Dorsey bought $50 million worth of the world's biggest cryptocurrency last year. (CNBC)

MicroStrategy (MSTR) was up 6% in premarket trading as bitcoin staged a comeback. The business analytics company holds roughly $4.5 billion in bitcoin, including more than $1 billion worth that was revealed in a press release today. Shares plunged 21% on Tuesday following bitcoin prices fell. (CNBC)

* MicroStrategy CEO says bitcoin will one day have $100 trillion market value (CNBC)
* Brinks CEO: Cash usage has increased amid the pandemic (CNBC)

The FDA's staff endorsed Johnson & Johnson's Covid-19 vaccine for emergency use, a critical step in bringing a third shot to the U.S. marketplace. The staff report is meant to brief the FDA's Vaccines and Related Biological Products Advisory Committee, which will meet Friday to review J&J's request for emergency use authorization. (CNBC)

GameStop CFO Jim Bell will step down next month. A source told Reuters that Bell's exit was unrelated to the recent Reddit-fueled wild swings in GameStop's stock. However, the source said his departure was initiated by GameStop, in a sign he was not viewed as the right fit as the retailer transitions into a tech-oriented business.

* Robinhood's Tenev faces off with Barstools' Portnoy over GameStop saga (MarketWatch)
* Michael Bolton sings about payment for order flow in 'investing social network' video (The Verge)

The FAA has ordered immediate inspections of Boeing (BA) 777-200 planes with Pratt & Whitney PW4000 engines before further flights after an engine failed on a United (UAL) flight on Saturday. United had temporarily grounded its fleet before the FAA announcement. Boeing said it supported the FAA's latest inspection guidance. (Reuters)

President Joe Biden is preparing to sign an executive order to review U.S. supply chains for large-capacity batteries, pharmaceuticals, critical minerals and semiconductors that power cars, phones, military equipment and other goods. (AP)

A luxury SUV driven by Tiger Woods crashed and rolled over Tuesday morning in southern California, leaving the golf superstar with serious injuries. Woods is "awake, responsive, and recovering in his hospital room" after undergoing emergency surgery, according to a statement posted on his Twitter account. Last month, Woods revealed he had "recently" undergone another back surgery. (CNBC)

STOCKS TO WATCH

Casper Sleep (CSPR): Casper Sleep lost 37 cents per share for its latest quarter, 2 cents a share more than analysts had been anticipating. The mattress retailer reported better-than-expected revenue, however, and its shares rose 4.6% in the premarket.

Six Flags (SIX): The theme park operator lost $1 per share for its latest quarter, more than the 89 cents a share loss that analysts had been anticipating. Revenue was well above estimates as was spending per guest. Six Flags said it is focusing on opening all its parks for the 2021 season, and it expects meaningful profit growth once the operating environment becomes more normal.

ODP Inc. (ODP): The parent of Office Depot's shares rose 1.1% gain in premarket action, despite falling short on the bottom line in its latest quarterly report. ODP earned 55 cents per share, compared to a consensus estimate of 83 cents a share, but revenue was slightly above analysts' forecasts.

Bausch Health (BHC): The pharmaceutical and medical products maker announced an agreement with investor Carl Icahn, adding Icahn Capital's Brett Icahn and Steven Miller to the board of directors. Icahn owns 7.83% of Bausch Health.

Toll Brothers (TOL): Toll Brothers earned 76 cents per share for its latest quarter, compared to a consensus estimate of 47 cents a share. The luxury home builder's revenue came in above forecasts as well. Toll Brothers also raised guidance for a variety of key metrics, with demand strong and housing inventories tight, and its shares rose 1.4% premarket.

Intuit (INTU): Intuit shares dropped 2.3% premarket after it came in 23 cents a share short of estimates, with quarterly profit of 68 cents per share. The financial software maker's revenue also fell shy of Street projections. The company behind TurboTax and QuickBooks predicted an upbeat current quarter, which includes tax filing season.

WATERCOOLER

Everton soccer club's ambitious project to build a stadium on Liverpool's waterfront is one step closer to becoming a reality after its planning application was unanimously approved by the local authority. The vision for the English Premier League team's new home incorporates a range of features and technologies focused on energy efficiency and the environment. (CNBC)