1. – Stock Futures Indicate Modest Recovery After Monday’s Rout
Stock futures traded higher on Tuesday, indicating Wall Street will recoup some losses from Monday’s sell-off as investors turned their attention to a slew of earnings reports.
Dow Jones Industrial Average contracts rose 191 points, S&P 500 futures rose 20 points, and Nasdaq futures gained 66 points.
The yield on the benchmark 10-year Treasury index fell to 1.187% on Tuesday. It fell below 1.2% on Monday to its lowest level since February as investors turned to safe-haven assets.
Shares fell on Monday as Wall Street assessed the impact that rising COVID-19 cases could have on economic recovery in the United States and around the world. The Dow Jones lost more than 700 points, its worst drop since October.Cramer’s Crazy Money recap: speculation, COVID, meme actions
“Valuations across the market had become stretched and we had to take a step back, but many cyclical companies are selling for fear that COVID will stop the momentum,” said Chris Zaccarelli, Independent Investment Director. Alliance of Advisors. “We don’t think this is the case and are prepared to let the liquidation run its course and buy the downside, confident that the economy will fully recover and return to its previous growth path, bringing most cyclical companies out of business. the company, the travel and leisure industries with it, ”Zaccarelli added. Benchmark U.S. crude rose 0.32% to $ 66.33 a barrel early Tuesday after falling on fears that a COVID-19 resurgence would squeeze demand for energy.
2. – Tuesday Calendar: Netflix and Chipotle Earnings
Netflix earnings reports are due Tuesday (NFLX) – Get a report, Philip Morris (PM) – Get a report, Intuitive surgery (ISRG) – Get a report, United Airlines (UAL) – Get a report, Mexican Grill Chipotle (GCM) – Get a report and travelers (VTR) – Get a report.
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The U.S. economic calendar on Tuesday includes housing starts and housing permits for June at 8:30 a.m. ET.
3. – Jeff Bezos getting ready for takeoff
Jeff Bezos, Founder and Executive Chairman of Amazon.com (AMZN) – Get a report and the richest man on Earth, will leave dry land on Tuesday for a flight to space.Bezos’ spaceflight startup Blue Origin will detonate him, along with three other space tourists, 66 miles above Earth in a fully autonomous rocket and capsule.
His trip comes just over a week after fellow entrepreneur Richard Branson, founder of Virgin Galactic (SPCE) – Get a report, made the space trip in low earth orbit.
Bezos will be accompanied by his brother Mark; Mary Wallace Funk, an aviation pioneer who, at 82, will be the oldest person to go into space; and Oliver Daemen, who, at 18, will be the youngest to go to space.“We will build a road to space for the next generation to do amazing things, and these amazing things will make things better here on Earth,” Bezos said during a press conference at Launch Site One in Van Horn, Texas. “We really think this flight is safe. “
Live coverage of the flight is available on the Blue Origin website starting at 7:30 a.m.ET. Take-off is scheduled for 9 a.m.
4. – The Nvidia share outperforms
Nvidia (NVDA) – Get a report was up in pre-market trading on Tuesday, a day after the chipmaker rose as many of its competitors fell in Monday’s market swoon.Nvidia shares will be split 4 for 1 on Tuesday.
Shares of Nvidia rose 1.15% to $ 189.95 on Tuesday morning after jumping 3.41% in the previous session.
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The stock has risen nearly 80% in the past year, giving it a market value of around $ 453 billion. It’s more than its rivals Intel (INTC) – Get a report et Broadcom (AVGO) – Get a report combined, a story noted in the Wall Street Journal.Analysts have been praising Nvidia since the company’s first quarter results were better than expected. TheStreet’s Brent Kenwell wrote earlier this month that after a recent drop, Nvidia shares were a candidate for the downside.
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Nvidia and Broadcom have stakes in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the shares? Find out more now.
5. – Apple delays a return to its offices
Apple (AAPL) – Get a report has reportedly pushed back the date it expects employees to return to the tech giant’s offices amid a resurgence of COVID variants in many countries.
Apple has extended the deadline by at least a month until October at the earliest, Bloomberg reported, citing people familiar with the matter.
CEO Tim Cook said in June that employees should start returning to their offices in early September for at least three days a week.
But that directive has changed, with the iPhone maker becoming one of the first U.S. tech giants to delay plans to return to the office. Apple will give its employees at least a month’s warning before demanding a return to offices, people told Bloomberg.The stock gained 0.39% pre-market to $ 143. Shares fell 2.69% on Monday. Apple is a stake in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stock? Find out more now.