Here are the top news, trends, and analysis that investors need to get their trading day started:
1. US futures tumble after Friday’s records for the Dow, S & P 500
Traders on the floor of the New York Stock Exchange.
Source: NYSE
US stock futures fell Monday after a late Friday rally the Dow Jones Industrial Average and S&P 500 rose over 1.4% and nearly 1.7%, respectively, as stocks reopened from a successful reopening benefited from Covid, again outperformed. The Dow and S&P 500, both closing at record highs, posted weekly gains roughly in line with Friday’s progress. Dow’s Boeing stock rose 3% in the pre-market on Monday after Southwest Airlines placed a huge aircraft order. Southwest’s shares rose slightly.
The Nasdaq offset a loss of nearly 1% on Friday and closed 1.2%. However, the tech-heavy index was still down 0.6% over the week, with only three days left in March. The Nasdaq posted a slight monthly loss while the Dow and S&P 500 stood ready to post solid gains for the month.
The 10-year government bond yield remained stable on Monday, trading below its most recent 14-month high. The rapid surge in yields this year has been problematic for growth stocks, including many technical names, as higher interest rates undermine the value of future earnings and depress market valuations.
2. Credit Suisse and Nomura are affected by the fallout from the US hedge fund
Credit Suisse Bank.
NurPhoto | NurPhoto | Getty Images
Credit Suisse warned Monday of a “highly significant” slump in its first quarter results after the Swiss-based bank began exiting positions in a large US hedge fund that collapsed on margin calls last week. Japanese company Nomura is currently evaluating a potential loss of an estimated $ 2 billion. The shares of Nomura and Credit Suisse were added on the Monday before the IPO.
The hedge fund at the center of the fallout is Archegos Capital Management, which was forced to liquidate positions late last week. The moves of the multi-billion dollar US family office founded by former Tiger stock analyst Bill Hwang sparked a wave of selling pressure on US media stocks and Chinese Internet ADRs on Friday.
3. The cargo ship ever to block the Suez Canal is partially floating
A view shows the Ever Given container ship in the Suez Canal in this satellite image from Maxar Technologies captured on March 28, 2021.
Maxar Technologies | Reuters
The giant container ship Ever Given, which blocked the Suez Canal, was partially floated again early Monday, days after the ship got stuck and halted a major global trade route. The Suez Canal Authority said the ship’s course has been corrected by 80% and further maneuvers will continue if the water level rises later in the day. It remains unclear when the waterway will be opened to traffic again as hundreds of ships are secured and waiting to enter the Suez. Maritime data showed that at least ten tankers and container ships changed course to avoid the congestion, including U.S. ships carrying natural gas for Cheniere and Shell / BG Group.
4. Biden to advance infrastructure before health and family care
President Joe Biden will hold his first formal press conference in the East Room of the White House in Washington, USA on March 25, 2021.
Leah Millis | Reuters
President Joe Biden will split his sweeping plan to improve the nation’s infrastructure into two parts. Biden will unveil the first part of his plan on Wednesday, which will focus on issues such as rebuilding roads and railways. The second part of the president’s plan – including childcare and health care reforms, aspects of so-called social infrastructure – will be released “in just a few weeks,” said Jen Psaki, White House press secretary, in an interview on Sunday. Overall, the legislation is expected to cost more than $ 3 trillion.
5. Fauci only warns the USA “on the corner” of the Covid pandemic
Anthony Fauci, director of the National Institute for Allergies and Infectious Diseases at the NIH, speaks about the daily press conference at the White House in Washington on January 21, 2021.
Jonathan Ernst | Reuters
With the possibility of safe summer barbecues in just a few months and the promise of widespread supplies of Covid vaccines in the US by the end of May, many Americans may feel that the nation has finally turned the pandemic around. The Chief Medical Officer of the White House, Dr. Anthony Fauci, however, warned that America was really only “on the corner”.
According to a CNBC analysis of the Johns Hopkins University data, daily daily US cases rose 12% in the past seven days, despite being well below their January high. Almost half of people aged 65 and over have taken all the necessary recordings, according to CDC data. However, only 20% of the adult population are considered fully vaccinated.
– Get the latest on the pandemic using CNBC’s coronavirus blog.
