Here are the most important news, trends and analysis investors need to start their trading day:
1. Stocks are trying to bounce back from Thursday’s tech defeat
Traders work on the floor of the New York Stock Exchange.
US equity futures were choppy as tech stocks tried to rebound from Thursday’s slide that dragged the Nasdaq down 3.5% for its worst single-day performance since October. Tesla fell slightly again in the premarket on Friday, a day after plunging 8% in a brutal week. The Dow Jones industrial average sank 559 points, or 1.8%, from a record close of the previous session on Thursday. The Dow had its worst day in nearly a month and so did the S&P 500, which lost nearly 2.5%. The culprit for the liquidation was the rapid rise in bond yields.
All three equity benchmarks were tracking weekly losses. Before the last trading day of February, the Nasdaq was clinging to a gain for the month, which started strong. The Nasdaq is down nearly 7% from its all-time closing high on February 12. The Dow and S&P 500 are solid green for the month. However, the S&P 500 is down almost 2.7% from its last record close, also on February 12.
2. Yield on 10-year Treasury bonds back slightly from one-year high
The 10-year Treasury yield fell back on Friday morning, but remained above 1.4%, after rising to 1.6% in the previous session to its highest level since February 2020 and more than 0.5% since the end of January. The increase in 10-year yield, which is used as a benchmark for mortgage rates and auto loans, has been driven by expectations of improving economic conditions as coronavirus vaccines are rolled out, as well as by fears of higher inflation.
A new round of government stimulus controls, approved in December, raised personal income to its highest monthly gain since April 2020, although inflation remained subdued. The Commerce Department reported on Friday morning that personal income increased 10% in January, slightly beating expectations. Inflation of personal consumption spending coincided with estimates at 1.5%.
3. Chamber to approve the Covid bill; Senate official says there is no minimum wage
Service industry workers speak in support of the introduction of the Wage Increase Act, which includes a $ 15 minimum wage for tipped workers, on January 26, 2021 in Washington.
Countess Jemal | Getty Images Entertainment | fake images
Concerns about inflation are stoked by the idea that Covid’s $ 1.9 trillion stimulus bill, expected to pass the House on Friday, in addition to accelerating growth, could overheat the economy. Democrats on Capitol Hill are trying to push through their relief measure, including raising the federal minimum wage to $ 15 an hour, without the support of the Republican Party. However, a key nonpartisan official, the Senate MP, ruled that Democrats cannot include the minimum wage increase in the bill. The decision means that the Senate will likely pass a different version of the bill than the House, and representatives will have to pass the plan a second time.
4. FDA Panel to Vote on J&J Single Injection Covid Vaccine
A healthcare worker fills a syringe from a vial with a dose of the Johnson & Johnson COVID-19 coronavirus vaccine as South Africa advances its inoculation campaign at Klerksdorp Hospital on February 18, 2021.
Phill Magakoe | AFP | fake images
A key FDA advisory panel will vote Friday on whether to recommend approval of Johnson & Johnson’s single-shot Covid vaccine for emergency use, which would help pave the way for a third preventative treatment in the US. While the entire FDA doesn’t have to follow the vaccine committee’s recommendation, it often does. During similar vaccine requests from Pfizer and Moderna, the FDA authorized the two-injection regimens from those companies a day after the external medical advisory panel endorsed the emergency use authorization.
5. DoorDash Shares Fall After Company Loses First Results Since IPO
A DoorDash Inc. delivery bag sits on the floor of Chef Geoff’s restaurant in Washington, DC
Andrew Harrer | Bloomberg | fake images
As more and more Americans get vaccinated and the economy continues to open up more fully, companies like DoorDash, which has benefited from the stay-at-home trade, could suffer. In its first report as a public company, the food delivery service told shareholders that it expects some of the headwinds it experienced with stay-at-home orders across the United States will change once the country gets the virus under control. . The shares sank 10% in Friday’s presale. Even with that drop, DoorDash would still be up nearly 50% from its December offer price of $ 102 a share. While DoorDash reported $ 970 million in fourth-quarter revenue late Thursday, which beat estimates, it also reported an adjusted loss per share of $ 2.67.
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