SPG Stock – Wall Street set for a lower open as tech stocks remain under pressure
BY THE NUMBERS
U.S. stock futures indicated a lower open Tuesday, a day after a tech-led sell-off saw the S&P 500 and Nasdaq post their largest one-day percentage losses since March 18. Dow futures implied an opening drop of around 142 points, while S&P 500 and Nasdaq futures were further in the red. (CNBC)
The tech-heavy Nasdaq has had a less-than-merry start to May, already down 4% this month and sitting 5.2% below its most recent record close. The 30-stock Dow continues to outperform the other averages, going negative only Monday in a late sell-off, and it remains up 2.6% for May. Despite its 1% tumble Monday, the S&P 500 also remains modestly higher for the month.
Equity markets around the globe were under pressure Tuesday after the declines in U.S. tech stocks. The pan-European Stoxx 600 was down more than 2% intraday. Most Asia-Pacific markets fell Tuesday, with Taiwan’s benchmark Taiex finishing lower by 3.79% and Japan’s Nikkei 225 declining 3.08%. However, in mainland China, the Shanghai composite and Shenzhen composite advanced 0.4% and 0.36%, respectively. (CNBC)
The Labor Department’s JOLTS report — the measure of job opportunities and labor turnover — is out at 10 a.m. ET, with economists expecting it to show 7.5 million job openings as of the end of March. That would be up from the 7.4 million openings seen at the end of February.
This morning’s earnings calendar will see the latest quarterly numbers from Palantir Technologies (PLTR), Hanesbrands (HBI), Aramark (ARMK) and Perrigo (PRGO), while Electronic Arts (EA), FuboTV (FUBO) and Lemonade (LMND) are among the companies reporting after the closing bell.
IN THE NEWS
The Covid vaccine from Pfizer (PFE) and BioNTech could be given to children ages 12 to 15 on emergency use basis as soon as this week. The U.S. Food and Drug Administration on Monday approved the companies’ application to lower the age eligibility, and the next step is a review of the shot for adolescents from the Centers for Disease Control and Prevention’s vaccine advisory committee. The group, which is expected to support giving the shot to kids, has a meeting scheduled for Wednesday.
* ‘It’s a big deal’ for America’s push to reopen, says NIH Director on Pfizer vaccine approval for adolescents (CNBC)
The Biden administration is willing to take additional steps in response to the recent ransomware cyberattack on Colonial Pipeline, President Joe Biden said Monday. The FBI confirmed criminal cyber group DarkSide was behind the attack. While Biden said “there is evidence that the actor’s ransomware is in Russia,” he indicted the U.S. did not have evidence to back up claims that Moscow directed the cyber hit. Biden added that he plans to talk to Russian President Vladimir Putin about the situation. (CNBC)
After proactively shutting down operations on the more-than-5,500-mile pipeline following the attack, Colonial Pipeline said Monday it has a goal of “substantially restoring operational service by the end of the week.” The company said it has already restored service on parts of the system, which is a critical part of U.S. petroleum infrastructure. (CNBC)
* Cloudflare seeing uptick in cyber incidents as hackers try ‘unleashing everything,’ CEO says (CNBC)
The triple-mutant Covid variant spreading throughout India as the nation grapples with a severe outbreak is now considered a “variant of concern,” an official from the World Health Organization said Monday. That means the highly transmissible variant known as B.1.617 has become a global health threat. Existing vaccines are still considered effective against the variant, but WHO official Maria Van Kerkhove indicated there’s some evidence it could evade some of the vaccine protections. (CNBC)
* Across faiths, U.S. volunteers mobilize for India crisis (Associated Press)
A Chinese start-up that has earned the reputation as “Uber for trucks” could publicly file this week for a U.S. stock exchange listing, according to a person familiar with the matter. The deal could value Full Truck Alliance at as much as $30 billion. Full Truck Alliance, which links truck drivers to people who want to ship items, received backing last fall from SoftBank and Tencent. The company may raise around $1.5 billion from its initial public offering. (CNBC)
* A division of SoftBank has invested $1.6 billion into an e-commerce start-up’s new ‘influencer platform’ (CNBC)
The federal agency that investigates traffic crashes released its preliminary report into the fatal wreck involving a Tesla ((TSLA)) vehicle last month in Spring, Texas, which attracted national attention after local authorities indicated their investigators believed nobody was in the driver’s seat at the time of the incident. The National Transportation Safety Board, in its preliminary probe released Monday, has not reached a determination about what led to the crash, including whether the operator misused the car’s driver-assistance features. (CNBC)
Attorneys general from 44 U.S. states and territories called on Facebook (FB) to scrap its plans to make a version of Instagram for kids under age 13, pointing in part to negative impacts social media has on children’s health. Concern over Facebook’s plans was a theme that developed during a congressional hearing in March. Facebook said it has “just started” exploring this Instagram option, adding any version for kids it develops would not show ads. (CNBC)
* Facebook content moderators say they receive little support, despite company promises (NBC News)
L Brands (LB) will spin off Victoria’s Secret into a separate entity, instead of selling the lingerie brand, the company announced Tuesday. L Brands said its board determined it would obtain a better valuation through the spinoff than a sale. The transaction is expected to close in August, putting Victoria’s Secret and Bath & Body Works into two publicly traded firms. (CNBC)
NBC announced it will not air the Golden Globes in 2022, saying the organization behind the awards, the Hollywood Foreign Press Association, is not diversifying its ranks quickly enough. The HFPA has been under fire in Hollywood in recent months due to concerns around diversity and for its coverage of the entertainment industry. NBC, which is owned by CNBC’s parent company Comcast (CMCSA), said it is “hopeful” it will be able to air the show in January 2023. (CNBC)
STOCKS TO WATCH
Wynn Resorts (WYNN) lost an adjusted $2.41 per share for its latest quarter, more than the loss of $1.98 predicted by analysts, and the casino operator’s revenue fell below Wall Street forecasts. Wynn also announced its mobile gaming unit, Wynn Interactive, will become a separate publicly traded company through a merger with blank-check company Austerlitz Acquisition Corp.
Roblox (RBLX) reported a 161% increase in quarterly bookings in the gaming platform company’s first report since going public. Roblox saw gaming activity surge thanks to the pandemic, as more people played games like “Jailbreak” and “MeepCity” and spent more of the company’s “Robux” digital currency for in-game purchases.
Novavax (NVAX) shares tumbled after the drugmaker pushed back its timetable for seeking Covid vaccine approvals. Novavax now said it won’t apply for regulatory approval in the U.S., UK. and Europe until the third quarter. It also pushed back its timeline for full production to the fourth quarter from the third quarter.
Simon Property (SPG) reported quarterly earnings of $1.36 per share, beating consensus forecasts by 40 cents, while the mall operator’s revenue was slightly above estimates. However, Simon also cut its full-year profit forecast and said occupancy levels would not return to 2019 levels until 2022 at the earliest.
Virgin Galactic (SPCE) lost 55 cents per share for its latest quarter, more than double the 27 cent loss that analysts were anticipating. Billionaire Richard Branson’s space flight company also said it is evaluating a timeline for its next test flight, citing the need to analyze wear-and-tear issues for its Eve mothership.
Callaway Golf (ELY) surged well past the 14 cent consensus estimate with adjusted quarterly earnings of 62 cents per share, while the golf equipment and apparel maker’s revenue was also well above forecasts. Callaway said demand for its products has been “unprecedented” as the pandemic recedes.
3D Systems (DDD) earned an adjusted 17 cents per share for its latest quarter, blowing past the 2 cent consensus estimate, with the 3D printer maker’s revenue also exceeding Wall Street predictions. 3D Systems also said it improved its profit margins through expense controls.
Norton LifeLock (NLOK) beat estimates on the top and bottom lines for its latest quarter, and the cybersecurity company also announced a $1.5 billion increase in its share repurchase program.
A Covid vaccination center has established just outside the Romanian castle that’s believed to be the inspiration for Dracula’s residence in Bram Stoker’s 19th-century gothic novel “Dracula.” Nearly 400 people were vaccinated at the site near Bran Castle over the weekend. While no appointment is necessary, only Romanian residents can officially get the vaccine there. (Associated Press)
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.