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U.S. stock futures dipped Tuesday after starting March with a broad rally. Shaking off the late February rough patch, the S&P 500 on Monday gained 2.4% for its biggest one-day advance since June. Covid vaccine optimism and the 10-year Treasury yield off its one-year high spurred stocks. The Dow Jones Industrial Average jumped 603 points, or 2%. The Nasdaq, which shed 4.9% in last week's tech sell-off, popped 3%. The Dow and Nasdaq had their best sessions since November.
President Joe Biden will announce Tuesday that Merck will help manufacture rival Johnson & Johnson's coronavirus vaccine, a senior administration official confirmed to NBC News. In late January, Merck ended its own Covid vaccine program, citing inferior immune responses. Last month, Merck said it was in talks with governments and companies to potentially help make vaccines. Merck and J&J, both Dow stocks, rose modestly in the premarket
Target on Tuesday exceeded Wall Street's expectations for the fourth quarter, thanks to a strong holiday season and stimulus checks. Still, Target declined to provide a forecast for the year ahead, saying the pandemic has made it too difficult to predict consumer patterns. Target reported adjusted quarterly earnings of $2.67 per share on revenue of $28.34 billion, which jumped 21% year over year. Shares were little changed.
Shares of Kohl's rose nearly 2% in premarket trading after the department store chain Tuesday delivered adjusted fourth-quarter earnings of $2.22 per share, more than double estimates. Revenue of $5.88 billion, which fell 10% year over year, was slightly better than expectations. Kohl's said it sees sales growth in 2021.
Shares of Zoom Video Communications rose 8% in Tuesday's premarket, the morning after the company reported adjusted fourth-quarter profit of $1.22 per share, crushing estimates by 43 cents. Revenue surged 369% year-over-year to $882.5 million, also beating forecasts. Zoom, which became all the rage during Covid, issued an upbeat current quarter forecast in anticipation of millions of people and businesses continuing to use its video-calling platform.
Democrats' hopes of including a federal minimum wage increase in their $1.9 trillion Covid relief bill seemed all but dead, four days after the nonpartisan Senate parliamentarian said the chamber's rules prohibited its inclusion. Senate Democrats hope to unveil their version of the House-passed package and begin debate as early as Wednesday. Congressional leaders want to send Biden the measure by March 14, when a federal jobless benefits boost, approved in December's aid measure, is set to expire.
Sen. Elizabeth Warren revived the idea of a wealth tax, which was central to her failed bid to become the 2020 Democratic presidential nominee. Sen. Bernie Sanders, who also ran unsuccessfully for president last year advocating a wealth tax, is among the co-sponsors for the Ultra-Millionaire Tax Act. The bill, unveiled Monday, proposes a 2% annual tax on wealth ranging from $50 million to $1 billion and a 3% annual tax on wealth over $1 billion.
— Reuters and The Associated Press contributed to this report. Follow all the developments on Wall Street in real time with CNBC Pro's live markets blog. Get the latest on the pandemic with our coronavirus blog.