5 issues it’s best to know earlier than Tuesday’s inventory market opens
Here are the top news, trends, and analysis investors need to start their trading day:
1. Stock futures rise after S&P and Dow break new records
A Wall Street street sign will be displayed in front of the New York Stock Exchange (NYSE) in New York, United States, on Thursday, February 11, 2021.
Bloomberg | Getty Images
US stock futures were higher Tuesday morning as Wall Street sought to build on Monday’s record high for the Dow Jones Industrial Average and S&P 500. The Nasdaq outperformed Monday, up 0.9%, with a surge from Tesla’s strong session. The tech-heavy index closed 1.15% off its all-time high. The blue chip Dow is up in four of the last five sessions, while the broad S&P has seen eight positive sessions in the last nine sessions.
The benchmark ten-year government bond yield fell slightly Tuesday morning, trading around 1.618%. On Monday, the 10-year yield rose to 1.673% but fell to just over 1.63%.
It’s been a busy week for tech earnings, even after Tuesday’s trading closes, as heavyweights Alphabet and Microsoft are due to report. Advanced Micro Devices, which can provide insights into the global semiconductor shortage, and Twitter will also report after the bell.
2. Facebook share gains after profit strike
Tom Weller | DeFodi Pictures | Getty Images
Facebook shares rose about 2% in pre-trading hours as investors cheered the social media company’s better-than-expected third-quarter earnings and its decision to add $ 50 billion to its share buyback plan. While Facebook revenue fell short of estimates, earnings per share of $ 3.22 topped its forecast of $ 3.19, according to Refinitiv.
Facebook’s quarterly results are set against the backdrop of a large, ongoing document dump from whistleblower Frances Haugen, a former product manager at the company. Several news organizations have released reports on the documents in the past few days, showing how Facebook is failing or struggling to fix the damage its apps and services can cause. However, Facebook boss Mark Zuckerberg defended the social media platform on Monday’s conference call, claiming the leak “paints a wrong picture of our company”.
3. Tesla hits $ 1 trillion in market cap for the first time
A Tesla store in Beijing, China on July 4, 2021.
Cost photo | Barcroft Media | Getty Images
Tesla hit $ 1 trillion in market cap on Monday after the electric vehicle maker’s shares rose 12.66% to close at $ 1,024.86. The share lost less than 1% on Tuesday before the trading session. The big move on Monday followed news that car rental company Hertz will order 100,000 vehicles from Tesla by the end of 2022. It also came after Morgan Stanley auto analyst Adam Jonas raised his price target for Tesla from $ 900 to $ 1,200.
Tesla, by far the world’s most valuable automaker, joins the club with a $ 1 trillion market cap like Apple, Amazon, and Microsoft.
4. Biden introduces new Covid rules for international visitors when travel restrictions are lifted
MIAMI, FLORIDA – SEPTEMBER 3: Travelers make their way through Miami International Airport before starting Labor Day weekend in Miami, Florida on September 3, 2021. The Centers for Disease Control and Prevention recommended that people not vaccinated against the Covid-19 virus should not travel this weekend. Those who are should wear their masks and take precautions due to the high levels of Covid-19 transmission in the country. (Photo by Joe Raedle / Getty Images)
Joe Raedle | Getty Images News | Getty Images
The Biden government released new details on Monday about its Covid rules, which will go into effect on November 8th if the US lifts restrictions on international travel since the early days of the coronavirus pandemic in 2020. The airlines need to check the vaccination status of passengers flying to the US and collect information that can be used for contact tracing.
In addition, unvaccinated Americans and adult travelers who receive a vaccination waiver must now test negative within one day of travel; Previously, children under the age of 18 were exempt from the compulsory vaccination within three days of leaving the United States, the White House said.
5. Democrats seek an agreement on Biden’s social spending plan
United States President Joe Biden speaks in the South Court Auditorium on the White House campus on October 14, 2021 in Washington, DC.
Drew Angerer | Getty Images
Congress Democrats and the White House are scrambling to reach an agreement on their signature domestic spending package, possibly before President Joe Biden heads to Europe for a series of meetings on Thursday. Should the Democrats agree on a scaled-down version of the spending plan, House spokeswoman Nancy Pelosi would bring the accompanying bipartisan infrastructure bill to a vote, which the Senate has already passed. If the House of Representatives approves the bill, Biden can sign it later this week.
The domestic spending package is likely to be between $ 1.5 trillion and $ 2 trillion, up from the original $ 3.5 trillion, as the Democrats raise concerns from two centrist party members, Sens. Joe Manchin of West Virginia and Kyrsten Sinema from Arizona. Your support is crucial for the plan to pass the Senate, which is split 50:50 between Democrats and Republicans.
– Follow the whole market like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.