Here are the top news, trends and analysis that investors need to start their trading day:
1. Nasdaq fell sharply after Friday’s comeback
Scaffolding across from the New York Stock Exchange (NYSE) in New York’s Financial District on Friday, March 5, 2021.
Michael Nagle | Bloomberg | Getty Images
US stock futures tended to be lower on Monday, with the Nasdaq dropping sharply and tech names to kick off the new week after Friday’s big turnaround. Tesla lost an additional 2% in the premarket after closing below $ 600 a share for the first time since early December on Friday. The stock has lost a third of its value since its all-day high in late January.
The Dow Jones Industrial Average, S&P 500 and Nasdaq all broke three session losses on Friday with strong progress. For the week, the Dow and S&P 500 gained 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 beginning of the year. The Nasdaq was open just above break-even before Monday.
2. Government bond yields are on the rise after Covid’s bill has been passed in the Senate
United States Senate Majority Leader Senator Chuck Schumer (D-NY) speaks at a weekly press conference at the Capitol on March 2, 2021 in Washington, DC.
Alex Wong | Getty Images News | Getty Images
The Senate’s approval of the $ 1.9 trillion Covid relief bill on Saturday was not enough to put stocks on Green Monday as more economic stimulus on top of an already recovering economy continued to fuel inflation concerns. That pushes bond yields up on Monday, with 10-year government bond yields trading around 1.6%, which is less than Friday’s high in a year. The 10-year yield has risen rapidly since the end of January, up more than 0.5% in just over a month.
3. Biden says immediate payments of up to $ 1,400 will be made shortly
US President Joe Biden speaks during a roundtable meeting with Americans who will benefit from the COVID-19 pandemic controls that are part of the US bailout on March 5, 2021 in Washington, DC.
Samuel Corum | Getty Images
The Democratically-run House wants to approve the Senate-approved Covid stimulus package on Tuesday and then send it for signature by President Joe Biden. The bill passed in the Senate on Saturday comes with a smaller, uncompromising federal unemployment benefit and no federal minimum wage. The legislation includes direct payments of up to $ 1,400 to most Americans, which Biden said could begin within two weeks on Saturday.
4. Stocks to watch: Disney, Comcast, GameStop, GE
An entrance to Disneyland will be vacant on September 30, 2020 in Anaheim, California.
Mario Tama | Getty Images
Shares of Disney were up more than 1% in Monday’s premarket trading after California officials cleared theme parks on Friday to open at reduced capacity April 1. They closed almost a year ago as a result of the pandemic. The order includes Disneyland in the southern part of the state, Comcast’s Universal Studios Hollywood, and others. Disney World in Florida and Universal Studios Orlando open in the summer with capacity restrictions. Shares of Comcast, the parent company of NBCUniversal and CNBC, fell into the premarket.
A man watches GameStop on 6th Avenue on Feb. 25, 2021 in New York.
John Smith | Corbis News | Getty Images
Shares of GameStop were up about 12% in Monday’s premarket after Bloomberg reported that the company had recruited board member Ryan Cohen to guide the video game store’s transition to an e-commerce company. Cohen, a major GameStop investor and founder of online pet store Chewy, will lead a governance task force on digital change.
Larry Culp, CEO, General Electric
Scott Mlyn | CNBC
According to The Wall Street Journal, General Electric is approaching a more than $ 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, leasing passenger aircraft from Boeing and Airbus, among others. Shares of GE were up about 2.5% in Monday’s premarket.
5. Oil prices are on the rise after Saudi Arabia’s facilities have been attacked
Brent crude, the international oil benchmark, rose above $ 70 a barrel for the first time in more than a year on Monday. The increase came after Saudi Arabia said on Sunday that its Saudi Aramco facilities were targeted by missiles and drones. The Iran-affiliated Houthi movement in Yemen claimed responsibility for the attack. West Texas Intermediate crude, the US benchmark, also moved up, trading above $ 66 against a two-year high.
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