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U.S. stock futures were relatively flat Tuesday, with technology stocks under some pressure premarket as bond yields pushed higher. The tech-heavy Nasdaq took the brunt of Monday's selling as the 10-year Treasury yield rose to about 1.63% following President Joe Biden's re-nomination of Jerome Powell as Federal Reserve chairman. Wall Street initially powered higher on the Powell announcement, with the Nasdaq and S&P 500 hitting intraday record highs before sliding 1.26% and 0.3%, respectively. The Dow was up more than 300 points at one stage before giving up most of those gains by the close. The 30-stock average remained over 2% away from its Nov. 8 record highs.
The U.S. announced Tuesday that it will tap its Strategic Petroleum Reserve as part of a global effort from energy-consuming nations to calm this year's rapid rise in fuel prices. The coordinated release by the U.S., India, China, Japan, South Korea and the U.K. is a first of its kind move. It's designed to halt soaring energy prices after OPEC and its allies rebuffed repeated requests from the U.S. and other nations to pump more quickly to match rising demand. Biden is facing low approval ratings in part due to high prices for gasoline and other consumer items during the economic recovery from the pandemic.
The Biden administration has no plans to curb any future Covid surges using a nationwide lockdown, White House coronavirus response coordinator Jeff Zients said at a briefing Monday. The federal government would instead rely on vaccines and therapeutics to keep the country, he said. Covid cases in the U.S. plateaued between 70,000 and 75,000 per day for almost three weeks starting in late October. They've recently pushed higher again into the mid-90,000-per-day range. Zients' comments came as Austria began its fourth nationwide lockdown and the Netherlands instituted a partial lockdown as infections spiked across Europe.
Shares of Zoom Video Communications fell more than 10% in Tuesday's premarket, the morning after the company reported a continued revenue growth slowdown from the explosive activity in the early days of Covid. Revenue of $1.05 billion in the most recent quarter ended Oct. 31 beat estimates and grew 35% from a year earlier. The previous quarters saw 54% and 191% year-over-year revenue growth numbers, respectively. For the next quarter, the company sees 19% revenue growth. For the October quarter, Zoom beat estimates on earnings and guided higher for next quarter.
Best Buy sank roughly 14.5% in Tuesday's premarket as investors worried about rising shipping costs and weaker demand for consumer electronics down the road. Before the bell, the company reported quarterly earnings and revenue that beat estimates. However, analysts are concerned that Best Buy could see a difficult combination in the year ahead as consumers shift spending to other areas like travel and entertainment.
Urban Outfitters dropped 10.5% in premarket trading after the retailer's latest quarter reflected a shift to more online sales, which drove up expenses due to higher delivery costs and higher wages at its distribution and fulfillment centers. Still, Urban Outfitters on Monday reported per-share earnings and revenue that exceeded expectations.
Correction: Zoom Video Communications expects revenue growth of 19% for its fiscal fourth quarter. An earlier version misstated the figured.