5 things to know before the stock market opens Tuesday
U.S. stock futures were mostly lower Tuesday, pointing to a 1.4% decline in the Nasdaq, one day after the index sank nearly 2.5%.
Traders work on the floor of the New York Stock Exchange.
U.S. stock futures were mostly lower Tuesday, pointing to a 1.8% decline in the Nasdaq, one day after the index sank nearly 2.5% in its worst single-day drop in almost a month. Tech stocks continued to slide in Tuesday's premarket, with Apple down 2% after closing lower by nearly 3% Monday.
Dow stock Home Depot dropped 2% in premarket trading on worries that Covid pandemic sales gains won't last. A stock drop of that magnitude would put a major dent in modest year-to-date gains.
The S&P 500 on Monday fell almost 0.8%, in a fifth straight decline, its worst streak in nearly a year. The Dow Jones Industrial Averaged bucked Monday's downdraft, closing slightly higher. It's doing so again Tuesday morning. All three stock benchmarks remained stronger for the month.
Jerome Powell, chairman of the U.S. Federal Reserve, speaks during a virtual news conference in Tiskilwa, Illinois, U.S., on Wednesday, Dec. 16, 2020.
Daniel Acker | Bloomberg | Getty Images
As part of mandated semiannual economic testimony, Federal Reserve Chairman Jerome Powell goes to Capitol Hill twice this week, appearing Tuesday before the Senate Finance Committee and Wednesday before the House Financial Services Committee. Rising bond yields and accompanying inflation fears are adding a higher level of concern around Powell's remarks. The 10-year Treasury yield, which moves inversely to price, was slightly lower Tuesday morning,. But it has been rising lately and trading around 1.36%. It was as high as 1.39% on Monday, the highest level in about a year.
Costfoto | Barcroft Media | Getty Images
Bitcoin plunged 9% Tuesday morning, sinking below $50,000. The world's largest digital currency, still up 60% this year, hit an all-time high over $58,000 on Sunday. Price swings of more than 10% are not a rarity in crypto markets. Bitcoin once climbed to almost $20,000 in 2017 before shedding 80% the following year. Treasury Secretary Janet Yellen on Monday warned about those wild swings.
Tesla CEO Elon Musk speaks at a delivery ceremony for Tesla China-made Model 3 in Shanghai, east China, Jan. 7, 2020.
Ding Ting | Xinhua News Agency | Getty Images
Shares of Tesla, which earlier this month revealed an investment in bitcoin, fell another 4.5% in Tuesday's premarket. The stock sank more than 8.5% on Monday in its biggest drop since late September. To be sure, other tech stocks also suffered heavy losses Monday. Ahead of trading Tuesday, shares of Elon Musk's electric auto maker were up just 1.25% this year. However, over the past 12 months, Tesla was up nearly 300%.
A Home Depot store is seen in Washington, DC, on August 18, 2020.
NICHOLAS KAMM | AFP | Getty Images
Home Depot's fourth-quarter earnings and revenue surged past expectations as consumers poured more money into home improvement due to the pandemic and strength of the real estate market. However, shares dropped on comments from Home Depot's CFO, questioning how long the pandemic would last and how that may influence consumer spending.
People wear facemasks as they walk through Herald Square on January 8, 2021 in New York City.
Angela Weiss | AFP | Getty Images
Shares of Macy's rose more than 1% in the premarket after the retailer reported its first quarterly profit in a year. Revenue in the fourth quarter also beat estimates as the company's efforts to cut inventories during the holiday quarter and rely less on deep discounting paid off. Ahead of Tuesday's trading, Macy's shares were up 35% this year, though they struggled over the past 12 months.
The Lucid Air sedan, which is expected to go into production next year at a plant being constructed in Arizona.
Electric vehicle maker Lucid Motors plans to go public at an $11.75 billion combined equity valuation through a reverse merger with a blank-check company. The deal between California-based Lucid and Churchill Capital Corp IV is the largest in a series of such tie-ups involving EV companies and special purpose acquisition companies. Shares of CCIV fell more than 30% in the premarket. But speculation about the deal pushed the SPAC stock up 470% this year alone. Lucid is led by ex-Tesla engineering executive and automotive veteran Peter Rawlinson.
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