The Dow, S&P 500 and Nasdaq poised for record highs
US Stock Futures pink tuesday, adding to Friday’s record is closed for the Dow Jones Industrial Average, S&P 500 and Nasdaq. The US stock market was closed Monday for Presidents Day. All three equity indices ended higher last week, continuing February’s strength. For the year, as of Friday’s close, the Dow, S&P500 and Nasdaq increased by almost 2.8%, 4.8% and 9.4%, respectively. (CNBC)
the 30-year Treasury yield tenuous above 2% early Tuesday as investors watched the president’s progress Joe BidenThe proposed $1.9 trillion Covid stimulus package on Capitol Hill and the push for wider distribution of coronavirus vaccines across the US 10-year Treasury yield amounts to more than 1.26%. (CNBC)
Bitcoin reached a new record on Tuesday, passing more than $50,000 per unit for the very first time, before cutting some of those gains. Major companies announced their support for digital currencies last week. Bitcoin has more than quadrupled in 2020 and is up over 60% this year. (CNBC)
* MicroStrategy shares rise after company reveals plans to sell convertible debt to buy more bitcoin (CNBC)
IN THE NEWS TODAY
More than 3.8 million homes in Texas were in the dark Tuesday morning amid record low temperatures increased electricity demand for heat which has pushed the state power grid to its limits. Power outages, typical of hot summer days, were imposed in Texas. The freezing weather was part of a massive winter blast that brought snow, sleet and freezing rain to the Southern Plains, parts of the Ohio Valley and the Northeast. (AP)
Electricity scarcity was so great that wholesale electricity spot prices on the Texas power grid increased by more than 10,000% Monday. Natural gas futures jumped more than 6% on Tuesday morning. However, RBC analysts said, “Some regional natural gas spot prices have increased 10- to 100-fold in a matter of days.” US oil prices too reached a pandemic peak above $60 a barrel as drilling and refineries shut down due to cold weather. (CNBC and Reuters)
house tenant Nancy Pelosi said Monday that Congress will establish an independent 9/11-style commission to investigate last month’s deadly uprising at the United States Capitol. Investigations into the riot were already scheduled, with Senate hearings scheduled for later this month before the Rules Committee. (CNBC)
* GOP Senate Leader McConnell op-ed: Acquittal upheld constitution, not Trump (WSJ)
* Social media platform Parler is back online on ‘indie tech’ (Reuters)
* New York prosecutors investigate Trump properties in Manhattan (WSJ)
Trying to move beyond Trump’s acquittal in last week’s impeachment trial, Biden is poised to make his first official domestic trips of his presidency, starting with a CNN town hall in Wisconsin on Tuesday and a visit from a Pfizer (PFE) Covid vaccine facility in Michigan on Thursday. (AP)
* Israeli study finds 94% drop in symptomatic Covid-19 cases with Pfizer vaccine (Reuters)
* Covid-related syndrome in children is growing and cases are more serious (NY Times)
Marriott International (MAR( announced on Tuesday the death of its CEO Arne Sorenson, who was undergoing treatment for pancreatic cancer. Two weeks ago, Marriott said Sorenson would temporarily reduce his schedule to facilitate more demanding treatment. Sorenson became Marriott’s third CEO in 2012, and the first without the Marriott family name. (CNBC and press release)
STOCKS TO MONITOR
SVC Health (CVS): The pharmaceutical company reported quarterly earnings of $1.30 per share, 6 cents above estimates. Revenue also beat Wall Street forecastshelped in part by Covid-19 testing and vaccinations at its sites.
Palantir Technologies (PLTR): Trading analytics firm’s stock fell 6.2% pre-market after declaring a quarterly lossalthough revenue exceeded Street’s estimates thanks to an increase in new contracts.
AutoNation (AN): The auto retailer beat estimates by 42 cents per share, with quarterly earnings of $2.43 per share. Revenues also beat estimates as demand remains high amid tight inventories. AutoNation announced the addition of $1 billion to its stock buyback program.
Constellation Brands (STZ): Brewer of beer AB InBev (BUD) is suing Constellation for its use of the Corona brand name for its hard seltzer water. AB InBev argues that a 2013 agreement between the two involving the brand name did not allow Constellation to use it for products other than beer.
CoreLogic (CLGX): CoStar Group (CSGP) has submitted a new offer to acquire rival real estate data provider CoreLogic for $95.76 per share in stock, following the Feb. 4 agreement between CoreLogic and equity firms. Stone Capital investment and Insight Partners for $80 per share in cash.
South West (LUV): The airline said it continued to experience a significant year-on-year impact on passenger demand due to Covid-19, although it said it expected improvement from February to March.
progressive (PGR): The insurer has entered into an agreement to acquire Protection insurance (PTTVCB) for $23.30 per share in cash, down from $15.01 per share at Protective’s close on Friday. Protective stocks were up about 47% in premarket trading.
Apple (AAPL): Automaker Nissan said it is not in talks with Apple about a potential autonomous vehicle joint venture. A Financial Times report said the two companies briefly discussed the issue, but those talks fell through.
Toyota engine (TM): The automaker will suspend production at nine plants in Japan following an earthquake that hit Japan’s northeastern region last week. Toyota did not specify the impact on production.
Facebook (FB): Facebook is designing a smartwatch that would have messaging functionality and provide health and fitness information, according to tech website The Information, citing people familiar with the matter. Sales of the device would start next year, according to the report.
Nvidia (NVDA): The FTC has opened an investigation into the graphics chipmaker’s deal to buy UK-based chip designer Arm Holdings for up to $40 billion. The deal was reportedly the subject of protests to regulators by Alphabet (GOOGL), Qualcomm (QCOM) and Microsoft (MSFT).
Bristol Myers Squibb (BMY): Bristol and French partner Sanofi (SNY) will pay more than $834 million in Hawaii in a case involving blood-thinning drug Plavix. The state had accused drugmakers of failing to warn nonwhite patients about the risks associated with the drug. Bristol and Sanofi said the decision was not consistent with the evidence and promised to appeal.
cintas (CTAS): The supplier of uniforms and construction services gave a better-than-expected current-quarter profit outlook, saying it now has a clearer picture of the impact of Covid-19 on its business and that its balance sheet remains strong.
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