Nasdaq futures sink as slam tech bond yields rise

BY THE NUMBERS

US stocks fell on Tuesday’s previous market, indicating fresh losses for September with just three days remaining in one of the historically weakest months of the year. Nasdaq futures were down 200 points, or 1.5%. S&P futures fell nearly 1%. Dow futures were down nearly 0.5%. The Nasdaq and the S&P 500 fell on Monday. The Dow rose modestly. Monday’s divergence came as Treasury yields rose. (CNBC)

The 10-year Treasury yield, rising on economic optimism and inflation fears, held above 1.5% on Tuesday, again at levels not seen since June. Higher bond yields, moving in the opposite direction to prices, can put pressure on tech stocks by exposing their high valuations. (CNBC)

Energy stocks, however, were higher in pre-market trading as US oil prices rose about 1% to around $ 76 a barrel, nearly a three-year peak. US oil prices soared 77% this year as business activity disrupted by Covid continued to rally. (CNBC)

Fed Chairman Jerome Powell, in remarks prepared for Tuesday’s Senate Banking Committee hearing, warned lawmakers that the causes of the recent rise in inflation may last longer than anticipated. The comments are part of the mandatory testimony Powell must give to Congress regarding the Fed’s economic response to the Covid pandemic. It appears before the House Financial Services Committee on Thursday. (CNBC)

* Dallas Fed Chairman Kaplan to Retire Early and Cites ‘Distraction’ from Trade Disclosure (CNBC)
* Boston Fed Chairman Rosengren abruptly announces early retirement (CNBC)

Senate Republicans blocked a House-passed bill that would prevent a shutdown of the federal government and a possible default on US debt. Lawmakers must pass an appropriations bill by Thursday to avoid a closure, and they must suspend or increase the debt ceiling sometime in the next few weeks to avoid a default. Democrats may be forced to suspend the debt limit on their own, potentially as part of their budget reconciliation bill of up to $ 3.5 trillion. (CNBC)

TODAY IN THE NEWS

Pfizer (PFE) announced Tuesday that it asked the FDA to authorize its Covid vaccine for children ages 5 to 11 for emergency use. Last week, US-based Pfizer and its German partner BioNTech (BNTX) said a smaller two-dose regimen was safe and elicited a “robust” immune response in a clinical trial. The request to US health regulators comes as infections have skyrocketed in young children, peaking in early September, according to data from the American Academy of Pediatrics. (Reuters)

* Pfizer launches study of next-generation mRNA-based flu vaccine (Press release)
* Unvaccinated Americans Say Need for Boosters Proves Covid Vaccines Don’t Work (CNBC)

Sanofi (SNY) announced positive results from a study of its own mRNA-based Covid vaccine, but later said it was stop any further development due to market dominance by Pfizer and Moderna (MRNA) vaccines. The French drugmaker said it would use mRNA technology to develop other vaccines, while focusing on developing a protein-based Covid vaccine with British partner GlaxoSmithKline (GSK). (Reuters)

Shares in Ford (F), after closing 2.7% higher on Monday, added another 3.5% in the premarket. South Korea-based American automaker and battery supplier SK Innovation announced plans to invest more than $ 11.4 billion in new American facilities that will create nearly 11,000 jobs to produce electric vehicles and batteries. (CNBC)

* Ford CEO says automaker’s stock has ‘tremendous potential’ even after doubling in its first year (CNBC)

Mastercard (MA) is launching into the competitive installment lending space by allowing banks and startups to increase their own “buy now, pay later” offerings. The credit card giant on Tuesday announced a new program called “Mastercard Fees” for the US, Australian and UK markets, which will launch in the first quarter of next year. (CNBC)

* Wells Fargo pays $ 37 million to settle Justice Department claims that it defrauded forex customers (CNBC)

STOCKS TO SEE

Recreational Vehicle Manufacturer Thor Industries (THO) reported quarterly earnings of $ 4.12 per share, beating the consensus estimate of $ 2.92 per share. Revenues also beat Wall Street forecasts. Thor said demand for RVs remains strong, with delays at a record high. Its shares rose 3.6% in the premarket.

Applied Materials (AMAT) fell 3.6% in the previous market after New Street downgraded the stock to “neutral” from “buy”, highlighting a record valuation and limited advantage for the manufacturer of manufacturing equipment. of semiconductors.

United Natural Foods (UNFI) beat the consensus estimate of 80 cents a share, with a quarterly profit of $ 1.18 a share. Revenues were below consensus estimates. United Natural said sales in the prior-year quarter saw strong customer demand driven by the pandemic. The shares fell 2.7% in the premarket.

Aurora Cannabis (ACB) reported lower-than-expected quarterly revenue as consumer cannabis sales fell 45% from the previous year. The company cited Covid-19 restrictions as a key reason for the drop. Aurora Cannabis was down 2.2% in premarket stock.

Endeavor Group (EDR) is buying the OpenBet sports betting business from Scientific Games (SGMS) for $ 1.2 billion in cash and shares. The owner of the Ultimate Fighting Championship plans to combine OpenBet with his current sports betting business. Endeavor shares soared 10.1% in the previous market.

Huntsman (HUN) rallied 4.2% in pre-trade after activist hedge fund Starboard Value acquired an 8.4% stake in the chemical maker, calling the shares undervalued. Huntsman said he looked forward to a constructive dialogue with Starboard.

Merck (MRK) is close to a deal to buy Acceleron Pharma (XLRN), according to people familiar with the matter who spoke to The Wall Street Journal. Bloomberg had previously reported that Acceleron was in talks to be bought by a major unidentified pharmaceutical company. Acceleron was up 2.6% in premarket operations.

Spotify Technology (SPOT) launched a global campaign designed to boost its ad sales. The music streaming service’s new campaign is targeting small and medium-sized businesses beyond its traditional focus. Spotify fell 1.9% in the premarket.

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