Here are the most important news, trends and analysis that investors need to start their trading day:
- Stocks set to open flat after fresh S&P 500, Nasdaq record closes
- United unveils largest order ever: 270 jets from Boeing and Airbus
- Big banks hike dividends after passing latest Fed stress tests
- JPMorgan plans to buy San Francisco-based ESG investing platform
- Biden to take $973 billion bipartisan infrastructure deal on the road
U.S. stock futures were steady Tuesday, one day after Facebook's first close above a $1 trillion market value broadly boosted tech stocks. The S&P 500 and Nasdaq both ended at record highs. Facebook was flat in the premarket. The stock surged 4% on Monday after a federal court dismissed the Federal Trade Commission's antitrust complaint against the social network. However, as energy stocks came under pressure Monday, the Dow broke a two-session winning streak. The 30-stock average was 1.4% away from its record close early last month. The 10-year Treasury yield ticked higher Tuesday, trading around 1.49%.
United Airlines unveiled its largest aircraft order ever Tuesday as the carrier charts a path for post-pandemic growth. United plans to buy 200 Boeing Max jets, a further vote of confidence in the U.S. airplane maker, which has struggled to regain its footing after two Max crashes and several production problems. United ordered 70 a321neos from Europe's Airbus, adding to purchase plans for dozens of long-range versions of the plane. United expects to add 25,000 union jobs, including pilots and flight attendants, to staff the new jets. Seatback screens and more roomier seats in coach will be central to the new interiors.
Goldman Sachs, Morgan Stanley, JPMorgan Chase, Wells Fargo and Bank of America all announced dividend increases after passing the Federal Reserve's latest stress tests. Morgan Stanley and Wells Fargo both doubled their dividends. Citigroup was the only one of the six largest U.S. banks to keep its dividend unchanged. Banks were forced to submit to oversight and pass annual stress tests after the 2008 financial crisis. Now, as long as they maintain certain capital levels, banks can make more of their own decisions. That new regime was supposed to start last year, but the Covid pandemic intervened.
JPMorgan has agreed to buy OpenInvest, a San Francisco-based start-up backed by venture capital giant Andreessen Horowitz and founded by former employees of the Bridgewater Associates hedge fund, CNBC has learned. OpenInvest allows investors to create personalized, dynamic values-based portfolios focused on ESG. "Clients are increasingly focused on understanding the environmental, social, and governance impact of their portfolios and using that information to make investment decisions that better align with their goals," Mary Callahan Erdoes, CEO of JPMorgan's asset and wealth management division, said in a statement.
President Joe Biden is set to travel to Wisconsin on Tuesday, hoping to convince voters of the economic benefits of the new bipartisan infrastructure compromise. The president presented his message to Democratic donors Monday, saying that the $973 billion package "signals to the world that we can function, we can deliver" and that "we can do significant things, show that America is back." White House officials issued an internal memo that highlights how the largest investment in transportation, water systems and services in nearly a century would boost growth.