BY THE FIGURES
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. (CNBC)
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. (CNBC)
IN THE NEWS TODAY
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. (CNBC)
Government bond yields tipped lower 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. (CNBC)
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 a direct listing on Wednesday that could value the company at a whopping $ 100 billion. (CNBC)
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. (CNBC)
STOCK TO WATCH
FedEx (FDX): Shares of the shipping company surged in premarket trading. KeyBanc Capital Markets has upgraded FedEx to “overweight”. The Wall Street firm also set a target price of $ 350 per share on FedEx. KeyBanc said FedEx can still grow in volume even with the return to in-person shopping.
JetBlue (JBLU), Spirit Airlines (SAVE): Shares of the airlines plunged into premarket trading after Susquehanna Financial Group upgraded JetBlue and Spirit Airlines to “positive”. “As US domestic air traffic is recovering, we want to take ownership of the low-cost carriers,” the company’s analyst told customers.
Booking Holdings (BKNG): The travel company won in premarket trading after Jefferies upgraded Booking to “buy” from “hold” in a global travel recovery. The former also raised its 12-month price target to $ 2,800 a share from $ 2,300 a share.
3M (MMM): Shares of the manufacturing giant fell slightly lower in the premarket after Deutsche Bank added a “catalyst call” to 3M. Wall Street said the stock has performed remarkably better in recent weeks, despite Deutsche Bank’s expectation that upcoming gains will go wrong.
NortonLifeLock (NLOK): The security firm slumped into premarket trading after Bank of America initiated the stock with an “underperform” rating and a price target of $ 19 per share. “Last year’s Covid-related demand growth may decline in the coming quarters and the company may return to negative trends in churn and subscriber numbers, negatively impacting revenue growth,” the company said.
Honeywell (HON): Honeywell’s stock rose in premarket trading after Deutsche Bank placed a ‘buy’ rating on the stock. The company said investors are unenthusiastic about Honeywell, despite a recovery.
Bristol-Myers Squibb (BMY): Shares of the pharmaceutical company surged in the premarket over Truist has upgraded Bristol-Myers Squibb to “buy” from “hold” with a price target of $ 74 a share. The Wall Street firm said it likes Bristol-Myers Squibb’s drug pipeline.