BY THE NUMBERS
US equity futures rose Tuesday, adding to Friday’s record close for the Dow Jones industrial average, the S&P 500 and the Nasdaq. The United States stock market was closed on Monday for Presidents’ Day. All three equity benchmarks finished higher last week, in a continuation of February’s strength. For the year, as of Friday’s close, the Dow, the S&P 500 and the Nasdaq were up nearly 2.8%, 4.8% and 9.4%, respectively. (CNBC)
The 30-year Treasury yield remained above 2% early Tuesday morning as investors watched the progress of the $ 1.9 trillion Covid stimulus package proposed by President Joe Biden on Capitol Hill and the momentum for a wider distribution of coronavirus vaccines in the US The 10-year Treasury yield increased to more than 1.26%. (CNBC)
Bitcoin hit a new high on Tuesday, topping $ 50,000 per unit for the first time, before slashing some of those gains. Major companies announced their support for digital currencies last week. Bitcoin more than quadrupled in 2020 and is up more than 60% this year. (CNBC)
* MicroStrategy shares rise after company reveals plans to sell convertible debt to buy more bitcoins (CNBC)
TODAY IN THE NEWS
More than 3.8 million homes in Texas were in darkness Tuesday morning as record low temperatures boosted demand for heating power that pushed the state’s power grid to the limit. Continuous blackouts, 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, through parts of the Ohio Valley and the Northeast. (AP)
The power shortage was so great that spot prices for wholesale electricity on the Texas power grid soared more than 10,000% on Monday. Natural gas futures rose more than 6% on Tuesday morning. However, RBC analysts said that “Certain regional natural gas spot prices have skyrocketed 10-100 times in a matter of days.” Oil prices in the United States also rose to a pandemic high above $ 60 a barrel due to the closure of drilling and refineries due to the cold. (CNBC and Reuters)
House Speaker Nancy Pelosi said Monday that Congress will establish an independent 9/11-style commission to investigate last month’s deadly insurrection on the US Capitol. Investigations into the riots were already planned, and Senate hearings are scheduled for later this month in the Rules Committee. (CNBC)
* Opinion Piece by Senate Republican Leader McConnell: Acquittal Vindicated the Constitution, Not Trump (WSJ)
* Social media platform Parler is back online on ‘independent technology’ (Reuters)
* New York prosecutors investigating Trump’s Manhattan properties (WSJ)
Trying to move beyond Trump’s acquittal in last week’s impeachment trial, Biden is set to make his first official national tours of his presidency, starting with a CNN town hall in Wisconsin on Tuesday and a tour of a facility of Covid vaccines from Pfizer (PFE) in Michigan. Thursday. (AP)
* An Israeli study finds a 94% drop in symptomatic cases of Covid-19 with the Pfizer vaccine (Reuters)
* The syndrome linked to covid in children is growing and the cases are more severe (NY Times)
Marriott International (MAR (announced Tuesday the death of its CEO, Arne Sorenson, who had been in treatment for pancreatic cancer. Two weeks ago, Marriott said Sorenson would temporarily cut his hours to facilitate more demanding treatment. Sorenson became in the third CEO in Marriott history) in 2012, and the first without the Marriott surname. (CNBC & Press Release)
STOCKS TO SEE
CVS Health (CVS): The pharmaceutical company reported quarterly earnings of $ 1.30 per share, 6 cents above estimates. Revenues also beat Wall Street forecasts, helped in part by testing for Covid-19 and vaccines at their locations.
Palantir Technologies (PLTR): Shares in the business analysis company plunged 6.2% in the previous market after reporting a quarterly loss, although revenue beat Street’s estimates in a jump in new contracts.
AutoNation (AN): The auto retailer beat estimates by 42 cents a share, with a quarterly profit of $ 2.43 a share. Revenues also beat estimates as demand remains high amid tight inventories. AutoNation announced the addition of $ 1 billion to its share buyback program.
Constellation Brands (STZ): Brewer AB InBev (BUD) is suing Constellation for the use of the Corona brand for its hard seltzer. AB InBev contends 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) submitted a new offer to acquire rival real estate data provider CoreLogic for $ 95.76 per share in shares, following CoreLogic’s agreement on February 4 to be acquired by the firms of Private equity Stone Capital and Insight Partners for $ 80 per share in cash.
Southwest (LUV): The airline said it continues to see a significant year-over-year impact on passenger demand due to Covid-19, although it said it expects an improvement from February to March.
Progressive (PGR) – The insurer has agreed to acquire Protective Insurance (PTVCB) for $ 23.30 per share for cash, compared to Protective’s close on Friday of $ 15.01 per share. Protective stocks soared around 47% in premarket trading.
Apple (AAPL): Automaker Nissan said it is not in discussions with Apple about a possible autonomous vehicle joint venture. A Financial Times report said the two companies briefly discussed the matter, but those talks failed.
Toyota Motor (TM): The automaker will suspend production at nine factories in Japan following an earthquake that struck the northeast region of Japan last week. Toyota did not specify the impact on production.
Facebook (FB): Facebook is designing a smartwatch that would have messaging functions and provide health and fitness information, according to technology website The Information, citing people familiar with the matter. Sales of the device would begin next year, according to the report.
Nvidia (NVDA): The FTC has opened an investigation into the graphics chip maker’s deal to buy UK-based chip designer Arm Holdings for up to $ 40 billion. The deal had reportedly been the subject of protests to regulators by Alphabet (GOOGL), Qualcomm (QCOM) and Microsoft (MSFT).
Bristol-Myers Squibb (BMY): Bristol and its French partner Sanofi (SNY) will pay more than $ 834 million to Hawaii in a case involving the blood-thinning drug Plavix. The state had accused drug makers of failing to warn non-white patients of the risks associated with the drug. Bristol and Sanofi said the ruling was inconsistent with the evidence and promised to appeal.
Cintas (CTAS): The uniform and construction services provider gave a better-than-expected current quarter earnings outlook, saying it now has a clearer picture of the impact of Covid-19 on its business and that its balance sheet remains strong .