Here are the top news, trends, and analysis investors need to get their trading day started:
1. Nasdaq fell sharply after Friday’s comeback
Scaffolding across from the New York Stock Exchange (NYSE) in the financial district of New York on Friday, March 5, 2021.
Michael Nagle | Bloomberg | Getty Images
US stock futures were mostly lower on Monday, with a sharp drop in the Nasdaq and tech stocks pointing to the start of the new week after the big reversal on Friday. Tesla lost another 2% on the premarket after closing below $ 600 per share for the first time since early December on Friday. The stock has lost a third of its value since its all-time high in late January.
The Dow Jones Industrial Average, S&P 500 and Nasdaq broke all three session losing streaks on Friday with strong advances. During the week the Dow and S&P 500 rose 1.8% and 0.8%, respectively. However, the Nasdaq fell 2% last week. The Dow and S&P 500 are up nearly 3% and 2.3%, respectively, since the start of the year. The Nasdaq was just above break-even before it opened on Monday.
2. Government bond yields rise after Senate Covid bill is passed
U.S. Senate Majority Leader Senator Chuck Schumer (D-NY) speaks during a weekly press conference at the U.S. Capitol on March 2, 2021 in Washington, DC.
Alex Wong | Getty Images News | Getty Images
The Senate’s passage of the $ 1.9 trillion Covid Relief Act on Saturday was insufficient to move stocks into Green Monday as further economic stimulus in addition to an already recovering economy fueled inflation concerns . This translates into higher bond yields on Monday. The 10-year yield on government bonds is 1.6%, below Friday’s one-year high. The 10-year yield has risen rapidly since late January, gaining more than 0.5% in just over a month.
3. Biden Says Direct Payments will soon reach $ 1,400
United States President Joe Biden speaks during a roundtable meeting with Americans who will benefit from COVID-19 pandemic relief efforts, which are part of the U.S. rescue plan on March 5, 2021 in Washington, DC.
Samuel Corum | Getty Images
The Democratic House intends to pass the Senate-approved Covid stimulus package on Tuesday and then send it to President Joe Biden for signature. The bill, passed in the Senate on Saturday, provides a smaller compromise for federal unemployment benefits and without an increase in the federal minimum wage. Legislation provides for direct payments of up to $ 1,400 to most Americans, which Biden says could go out within two weeks on Saturday.
4. Stocks to watch: Disney, Comcast, and General Electric
An entrance area to Disneyland is empty on September 30, 2020 in Anaheim, California.
Mario Tama | Getty Images
Disney shares rose more than 1% on the Monday leading up to trading after California officials released theme parks on Friday to open with reduced capacity on April 1. They closed almost a year ago due to the pandemic. The contract includes Disneyland in the southern part of the state, Comcast’s Universal Studios Hollywood, and others. Disney World in Florida and Universal Studios Orlando opened with capacity restrictions in the summer. Comcast, the parent company of NBCUniversal and CNBC, fell ahead of the market.
Larry Culp, CEO of General Electric
Scott Mlyn | CNBC
According to The Wall Street Journal, General Electric is on the verge of a $ 30 billion deal to combine its aircraft leasing business with Ireland’s AerCap Holdings. GE Capital Aviation Services is one of the world’s largest jet leasing companies and leases passenger aircraft from companies such as Boeing and Airbus. GE shares rose about 2.5% on the Monday leading up to its IPO.
5. Oil prices rise after the attack on facilities in Saudi Arabia
Brent crude, the international oil benchmark, surged above $ 70 a barrel on Monday for the first time in over a year. The surge came after Saudi Arabia announced on Sunday that its facilities in Saudi Aramco had been attacked by missiles and drones. Yemen’s Iranian-centric Houthi movement took responsibility for the attack. West Texas Intermediate Crude Oil, the US benchmark, also rose, trading above $ 66 on a nearly two-year high.
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