What to watch today: Stock futures fall after Dow record as yields jump
BY THE NUMBERS
U.S. stock futures dropped Tuesday as the 10-year Treasury yield hit a 14-month high in early trading. On Monday, the Nasdaq dropped and the S&P 500 fell from the previous session's record close. The Dow bucked Monday's downdraft, closing at another record despite weakness in bank stocks caught in the fallout of the Archegos Capital Management margin call chaos. (CNBC)
The 10-year Treasury yield topped 1.77% early Tuesday, taking out another January 2020 high, as Covid vaccine rollouts and planned infrastructure spending boosted hopes of a broad U.S. economic recovery. However, the move also stoked inflation fears and put growth stocks under pressure because higher rates erode the value of future profits and squeeze market valuations. (CNBC)
On today's economic calendar, Tuesday brings the January S&P/Case-Shiller home price index at 9 a.m. ET. March consumer confidence is out at 10 a.m. ET. Today's after-the-bell earnings include Lululemon (LULU), Calvin Klein and Tommy Hilfiger owner PVH Corp. (PVH), BlackBerry (BB), and Chewy (CHWY). (CNBC)
IN THE NEWS TODAY
In the Archegos meltdown, triggered by last week's slide in shares of ViacomCBS and other stocks, Goldman Sachs avoided losses, CNBC's Hugh Son reported. By the time Credit Suisse and Nomura said early Monday they unloaded positions on behalf of Archegos, Goldman and Morgan Stanley had already finished unloading their positions, according to people with knowledge of the matter.
* How Archegos' $20 billion move to flee certain names led to banks' share prices tumbling (CNBC)
The U.S. is facing "impending doom" as daily Covid cases begin to rebound once again, warned CDC Director Dr. Rochelle Walensky. "We have so much to look forward to, so much promise and potential of where we are and so much reason for hope, but right now I'm scared," she said in an emotional, candid moment during Monday morning's press briefing. (CNBC)
* Biden says states should reinstate mask mandates, wait to reopen businesses (CNBC)
* Texas removes restrictions, but Rangers fans showed some caution (NY Times)
Global leaders published a letter Tuesday calling for a pandemic treaty to improve cooperation and transparency in the case of future outbreaks, but China and the U.S. were not among the signatories. The leaders said the Covid crisis was the "greatest challenge for the global community since the late 1940s." (CNBC)
* Double mutation of Covid variant in India risks spread to other countries, doctor warns (CNBC)
* One dose of Pfizer, Moderna vaccines 80% effective in preventing Covid (CNBC)
Germany's BioNTech jumped 4.9% premarket after it raised its manufacturing goal for its Covid-19 vaccine to 2.5 billion doses by the end of 2021. Previously, BioNTech's vaccine partner Pfizer (PFE) had predicted output of between 2.3 billion and 2.4 billion. (Reuters)
* Becton Dickinson gets emergency use clearance for new, rapid antigen flu and Covid test (MarketWatch)
PayPal (PYPL) will launch a checkout service allowing U.S. customers to use cryptocurrency holdings when they check out at millions of online merchants. Customers will be given the option of converting cryptocurrency to fiat currencies before they complete their purchases. (Reuters)
* Crypto investor who bought Beeple’s NFT for $69 million says he would have paid even more (CNBC)
London-based online payments company Paysafe is set to begin trading on U.S. public markets after merging with blank-check company Foley Trasimene Acquisition II Corp, billionaire business and sports executive Bill Foley told CNBC Monday. Foley is the chairman of Fidelity National Financial (FNF) and the majority owner of the Vegas Golden Knights.
* SPAC backed by ex-GM executive announces deal with flying car company (CNBC)
Tesla (TSLA) double-charged some customers for new cars. Now those customers are trying to get refunds for the added charges. For the affected buyers interviewed by CNBC, amounts taken from their accounts ranged from $37,000, the price of a base version 2021 Tesla Model 3 sedan, to around $71,000, the price of a 2021 Tesla Model Y crossover SUV loaded with premium options.
* U.S. safety agency says it will gather information on Tesla crash with truck in NJ (Reuters)
* VW accidentally leaks new name for its U.S. operations: Voltswagen (CNBC)
* Lexus unveils the LF-Z Electrified, a new concept EV symbolizing future lineup (CNBC)
* Volvo is set to give all employees 24 weeks of paid parental leave (CNBC)
Amazon (AMZN) has ratcheted up attacks against lawmakers and critics on Twitter just as workers at an Alabama warehouse are set to vote on whether to unionize. Today is the final day for Amazon workers in Bessemer, Alabama, to return their ballots in order to be counted in a high-stakes union election. (CNBC)
* Fired, interrogated, disciplined: Amazon warehouse organizers allege year of retaliation (NBC News)
* SpaceX should be forced to comply with DOJ subpoena on hiring practices, judge advises (CNBC)
Virgin Galactic (SPCE) on Tuesday unveiled the latest spacecraft addition to its fleet: VSS Imagine. The spacecraft representing the first of its next-generation SpaceShip III class of vehicles, and adds a second spacecraft to its fleet. (CNBC)
STOCKS TO WATCH
McCormick & Co. (MKC) reported adjusted quarterly profit of 72 cents per share, beating estimates. Revenue exceeded expectations as well. The spice and condiment maker also raised its full-year forecast, as the pandemic continues to see more consumers cooking at home. McCormick shares gained 2.1% in the premarket.
Albertsons (ACI) announced a wide-ranging partnership with Alphabet-owned Google to integrate a variety of Google services to enhance the shopping experience for the supermarket chain's customers.
T-Mobile US (TMUS) will end its TVision live television service at the end of April. The wireless carrier will instead offer its customers discounts to subscribe to Google's YouTube TV service.
FactSet (FDS) reported adjusted quarterly earnings of $2.72 per share, missing estimates by 2 cents, while revenue was in line with Wall Street forecasts. The financial information provider also predicted full-year adjusted earnings of $10.75 to $11.15 per share, compared to a consensus estimate of $11.17.
DraftKings (DKNG) announced the acquisition of sports betting and content company VSiN for an undisclosed amount. DraftKings shares jumped 1% premarket.
WATERCOOLER
Rapper Lil Nas X is collaborating with a streetwear company on "Satan Shoes." Only 666 pairs went on sale Monday and sold out immediately for $1,018 each. The controversial kicks, apparently modified Nike Air Max 97s, contain a drop of human blood in the sole. Nike denied any involvement. (NBC News)