Here are the most important news, trends and analysis that investors need to start their trading day:
Dow and S&P 500 futures jumped more than 1% and Nasdaq futures surged roughly 2% on Tuesday following Russia's announcement that some of its troops at the border with Ukraine were pulling back. As stocks popped, bond prices fell, pushing yields higher. The 10-year Treasury yield topped 2% again Tuesday after another hot inflation report, with January wholesale prices rising 9.7% year over year, just under their biggest annual increase on record in December.
- Investors will be digesting that strong producer price index after last week's elevated consumer inflation data to try to determine if the Federal Reserve might tighten more aggressively.
- They'll also be watching Tuesday's Senate Banking Committee vote on President Joe Biden's slate of Fed nominees, including Jerome Powell for a second term as Fed chairman.
- To start the week, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq logged their third straight negative sessions.
U.S. oil prices, as measured by West Texas Intermediate futures, sank more than 2.5% on Tuesday on the apparent easing of Russia's aggressive posture toward Ukraine. In a statement, Igor Konashenkov, a spokesman for the Russian Ministry of Defense, said troops recently posted to Russia's southern and western military districts — which border Ukraine — completed their drills and "have already begun loading onto rail and road transport and will begin moving to their military garrisons today." When tensions were still high Monday, WTI jumped to more than $95 per barrel, its highest level since September 2014.
Intel on Tuesday announced a deal to buy Israeli chipmaker Tower Semiconductor for $53 per share, or $5.4 billion, a 60% premium over Tower's Monday closing price. Tower's shares in U.S. premarket trading were not trading at quite as high of a premium, jumping more than 40%. Tower makes chips for a wide variety of industries including medical, automotive and consumer products. Intel shares, which have struggled along with other tech stocks this year, rose 1.5% in Tuesday's premarket.
Warren Buffett's Berkshire Hathaway purchased about $1 billion worth of shares in Activision Blizzard in the fourth quarter, according to a regulatory filing, jumping in before Microsoft agreed to buy the video game publisher for $68.7 billion. Berkshire is poised to notch a handsome profit should the deal close. Berkshire also increased its position in Chevron by more than 30% in the fourth quarter. Buffett first bought Chevron at the end of 2020, which was largely viewed as a classic value play and a bet on the rebounding economy.
Greenlight Capital's David Einhorn, who has a history of betting against Tesla, disclosed a new wager against the Elon Musk-led electric automaker. According to a fourth-quarter regulatory filing, the hedge fund manager was long puts against 100,000 shares of Tesla with a notional value of $106 million. Investors profit from puts when the underlying securities fall in prices. To be sure, it's also possible Greenlight could have gotten out of the position in the first quarter of this year. Einhorn was one of the most vocal Tesla bears on Wall Street at one time.