What to know when the stock market opens today?
5 things to know when the stock market opens today.
Stock attempt to recover from tech-led rout
The tech stocks bounced from Thursday’s rout. So U.S. stock futures were choppy that dragged the Nasdaq down by 3.5 percent for its worst single-day performance since October. In Friday’s premarket, Tesla slightly fell again, after dropping 8 percent in a week. The Dow Jones Industrial Average sank 559 points (1.8%) on Thursday. It had its worst day in a month and so did S&P 500. It lost nearly 2.5% because of the rapid growth in bond yields.
All three stock benchmarks were trailing for weekly losses. Ahead of the final trading day of Feb., the Nasdaq was hanging to a profit for the month, which started off strong. The Nasdaq was down about 7 percent from the 12 February record closing high. Both S7P 500 and the Dow remain solidly in the green for the month. But, the S7P 500 was off nearly 2.7 percent from its previous record closing high, also on 12 Feb.
10-year Treasury yield fallbacks slightly from one-year high.
Friday morning, the 10-year Treasury yield fallbacks. However, remain above 1.4 percent after rising to 1.6 percent in the last session to its highest level since Feb. The spike in the 10-year yield, which is used as a benchmark for auto loans and mortgage rates, has been driven by expectations of developing economic conditions as COVID vaccines are rolled out, as well as fears of higher inflation.
A fresh round of government stimulus checks sent personal income up to its highest monthly gain since April (2020) though inflation remained tame. As per Commerce Department, personal income rose 10% in Jan.
Inflation worries are being mended on the thought that the $1.9 trillion COVID stimulus bill, which is seen passing the White House this Friday.
Capitol Hill’s Democrats are attempting to push their relief measure, including a federal minimum wage boost to $15/hr, though without the support of the GOP. But the Senate Parliamentarian ruled Democrats cannot include the minimum wage increase in the bill. It means the Senate will probably pass a different version of the legislation than the House. And representatives will have to accept the plan a 2nd time.
FDA panel to vote on J&J’s single-shot corona vaccine
A Food and Drug Administration advisory panel decides to vote Friday on whether to suggest approval of J&J’s single-shot corona Vaccine for emergency use, which would pave the way for a 3rd preventive treatment in the U.S. The full FDA doesn’t have to follow the vaccine committee’s suggestion. During similar requests by Modern & Pfitzer for vaccines, the FDA authorized their two-shot regimes a day after the panel of outside medical advisors backed emergency use authorization.
DoorDash stock falls
As more Americans are vaccinated and the economy continues to open up more, companies like DoorDash might have problems. The food delivery service, in its first report as a public company, told shareholders it expects some of the tailwinds it experienced from stay-at-home orders all over the U.S. will turn around once the nation gets corona under control. Shares dropped 10 percent in Friday premarket. However, DoorDash would still be up about 50% from its $102 per share offer price in December. Late Thursday, DoorDash reported $970m in revenue during the 4th quarter. It also reported an adjusted per-share loss of $2.67.