Here are the top news, trends and analysis that investors need to start their trading day:
1. Dow to open lower after FDA pauses J&J Covid vaccine
Traders on the New York Stock Exchange.
Dow futures dropped on Tuesday after the FDA and CDC recommended a break from use of Johnson & Johnson’s one-time Covid vaccine. The federal health agencies said they are reviewing reports from six recipients who have experienced rare and serious blood clotting problems. The Dow stock J&J fell 2.5% in premarket trading.
The Dow and S&P 500 started the week lower, breaking the three session win streak and falling from Friday’s record highs. The Nasdaq broke a two-session winning streak. The tech-heavy index was 1.7% from the record that closed in February as of the end of Monday.
2. J&J says it is working with federal regulators
A box of Johnson & Johnson’s Janssen COVID-19 vaccine doses is pictured at Grubb’s Pharmacy on Capitol Hill on Monday, April 12, 2021.
Tom Williams | CQ-Roll Call, Inc. | Getty images
In a statement, J&J said there is “no clear causal relationship” between the rare blood clotting events and the Covid vaccine. The US drug giant also said it is working with regulators. All six cases occurred in women aged 18 to 48, with symptoms developing six to 13 days after receiving the injection. The CDC will convene a meeting of the Advisory Committee on Immunization Practices on Wednesday to further review the cases, federal health regulators said Tuesday. The FDA is also investigating the cases.
3. Consumer prices are emerging more strongly than expected
A line of customers are waiting to enter the BJ’s Wholesale Club market at the Palisades Center mall during the coronavirus outbreak in West Nyack, New York, March 14, 2020.
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Government bond yields ticked higher on Tuesday after the release of a major inflation report came in stronger than expected. The government said consumer prices are up 0.6%, while the core ex-food and energy tariff is up 0.3%. Consumer prices rose 2.6% year-on-year, their highest level since August 2018, and were boosted by a strong economic recovery. The yield on 10-year Treasury bonds traded around 1.68%.
4. Bitcoin hits new all-time high ahead of Coinbase debut
In this illustration, a representation of Bitcoin virtual currency is shown in front of a stock chart.
Given Ruvic | Reuters
Bitcoin soared to a record high of more than $ 63,000 on Tuesday as investors awaited the highly anticipated stock market debut of cryptocurrency exchange Coinbase. Coinbase will go public on Wednesday on a direct listing that could value the company at a whopping $ 100 billion – more than major trading platform operators like Intercontinental Exchange, which owns the New York Stock Exchange. Crypto investors hail the company’s stock market debut as a significant milestone for the industry after years of skepticism from Wall Street and regulators.
5. Grab agrees to strike a deal to go public in the world’s largest SPAC merger
The Grab Holdings Inc. app is displayed on a smartphone in an arranged photo taken in Singapore on Friday, September 25, 2020.
Ore Huiying | Bloomberg | Getty images
Grab, the Southeast Asia giant, goes public in a record-breaking SPAC merger with Altimeter Growth Corp. worth nearly $ 40 billion. Softbank-backed Grab will receive approximately $ 4.5 billion in cash, including $ 4 billion from a private investment in a public equity plan. Grab, ranked No. 16 on last year’s CNBC Disruptor 50 list, delivers a variety of digital services such as transportation, food delivery, hotel booking, online banking, mobile payments and insurance services from the app.
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