CNBC Heading into the busiest week of earnings season, U.S. stocks were tracking for a mixed open Monday. Nasdaq futures were stronger after the tech-heavy index stood out in a largely lower market Friday to close at another record high. Dow futures Monday were lower by more than 100 points. (CNBC)
Last week, the Nasdaq surged more than 4%; the S&P 500 gained nearly 2%; and the Dow Jones Industrial Average rose more than 0.5%. Despite Friday's losses, the Dow and S&P remained less than 1% away from Thursday's record high close. (CNBC)
GameStop (GME) shares, already up 245% in 2021, surged another 40% in Monday's premarket trading. The stock initially jumped earlier this month after the video-game seller said Chewy co-founder Ryan Cohen was joining its board. The announcement triggered a so-called short squeeze, with hedge funds and other investors rushing to cover their bets against the stock. (CNBC)
There's no economic data set for release today, although the rest of the week is quite busy for economic numbers and it will also see 2021's first meeting of Fed policy makers on Tuesday and Wednesday. Monday's earnings start off slow, but 107 S&P 500 companies will be out with their quarterly results by the end of the week. (CNBC)
IN THE NEWS TODAY
Dow stock Merck fell nearly 1% in premarket trading after the U.S. drug giant announced Monday that it's discontinuing its Covid vaccine program. Merck said its two vaccine candidates generated immune responses that were inferior to those seen for other vaccines. The company said it will now focus its pandemic research on treatments. (Reuters)
* CDC director says federal government does not know how much Covid vaccine the U.S. has (CNBC)
* U.S. races to stay ahead of new Covid strains as virus mutates, Biden health officials say (CNBC)
* New model points to vaccines alone not being enough to end the pandemic (NY Times)
Pfizer (PFE) will be shipping fewer vaccine vials to fulfill its commitment to the federal government, according to the New York Times. The drug company successfully convinced the FDA to acknowledge that the vials contained six doses and not five as originally thought.
Mexican President Andres Manuel Lopez Obrador became the latest world leader to get Covid-19, saying Sunday he tested positive. He also said his symptoms were light and he was receiving medical treatment. (NBC News)
President Joe Biden will sign a travel ban Monday on most noncitizens entering the country who were recently in South Africa, where a new strain of Covid has been identified, a person familiar with the situation told CNBC. Biden will also reinstate travel restrictions on the entry of noncitizens from the U.K. and Brazil, where new strains also emerged. (CNBC)
Top Biden aides spoke with a group of moderate Senate Republicans and Democrats on Sunday about the president's $1.9 trillion coronavirus relief proposal. Conservatives are questioning whether more stimulus is needed on top of December's $900 billion package, while progressives are urging Biden to stand his ground. (AP)
House Democrats on Monday evening will carry the sole impeachment charge against Trump of "incitement of insurrection" across the Capitol, passing the baton to the Senate for a trial scheduled to start in two weeks. Leaders in both parties agreed to the short delay to give Trump's team and House prosecutors time to prepare. (AP)
Biden will take steps Monday to harness the purchasing power of the U.S. government to increase domestic manufacturing and create markets for new technologies, a senior administration official said. The president will sign an executive order aimed at closing loopholes in existing "Buy American" provisions. (Reuters)
* China surpasses U.S. as largest recipient of foreign direct investment (CNBC)
STOCKS TO WATCH
Kimberly-Clark (KMB): The consumer products company reported adjusted quarterly profit of $1.69 per share, beating estimates by 9 cents, with revenue also above Wall Street forecasts. Kimberly-Clark continues to benefit from a pandemic-induced surge in demand. Additionally, the company announced a an increase in its quarterly dividend to $1.14 per share from $1.07.
NCR (NCR): NCR is close to a deal to buy ATM operator Cardtronics (CATM) for $1.7 billion or $39 per share, according to people familiar with the matter quoted by the Wall Street Journal. Investment firms Apollo Global (APO) and Hudson Executive Capital had previously offered $35 per share for Cardtronics, but the paper said they are declining to raise that offer.
TS Innovation Acquisitions (TSIA): The special purpose acquisition company is taking smart-lock and building management software maker Latch public through a merger. TS Innovation is backed by New York commercial real estate firm Tishman Speyer. The deal values Latch at $1.56 billion and is expected to close during the second quarter.
Ion Acquisition Corp. (IACA): The special purposes acquisition company is taking Taboola public at a $2.6 billion valuation through a merger. Taboola is a provider of promoted internet content technology.
Blackstone (BX): The private equity firm's Alight Solutions unit is near a deal to be taken public through a merger with a SPAC owned by veteran investor Bill Foley, according to people familiar with the matter who spoke to Reuters. The deal would value the provider of benefits services at $7.3 billion, including debt.
AMC Entertainment (AMC): The movie theater operator secured $917 million in new financing, as it deals with the pandemic's impact on movie theater attendance. The liquidity will allow it to keep operating without resorting to a bankruptcy filing.
Express (EXPR): Express is jumping in pre-market trading, following a 53% increase during Friday's session. The apparel retailer earlier this month announced a deal to add $140 million in financing.
BlackBerry (BB): BlackBerry is poised to extend its seven-session winning streak, rising in pre-market trading after last week's 43% gain. The communications software maker has seen its stock rise following a report that it's resolved a patent royalty dispute with Facebook (FB).
Uber Technologies (UBER): Uber laid off about 185 people from its newly-acquired Postmates division, according to people with knowledge of the matter who spoke to the New York Times. That represents about 15 percent of the Postmates workforce, as Uber works to consolidate the food delivery service with its Uber Eats operation.
WATERCOOLER
After demolishing Buffalo for the AFC title, the Kansas City Chiefs and quarterback Patrick Mahomes head to Tampa for the Super Bowl, looking to complete a double. Standing in their way, the veteran Tom Brady with his new team, the Bucs. Brady and company get to play in their home stadium, a Super Bowl first. (AP)
CONTRIBUTORS
Matthew J. Belvedere
@Matt_Belvedere
Peter Schacknow
@peterschack
