Futures tied to the S&P 500 wobbled on Tuesday, following a six-day rally that positioned the benchmark near a record high a day earlier.
Across markets, investors rotated out of tech shares and into small-caps and cyclicals, which look to benefit from an economic recovery.
However, the pandemic is far from over and questions remain about how quickly any potential vaccines may become widely available.
President-elect Joe Biden warned yesterday; “There’s a need for bold action to fight this pandemic. We’re still facing a very dark winter”. This statement came as the US surpassed 10 million Covid-19 cases.
Ahead, in today's economic calendar, Tuesday includes; Job Openings and Labor Turnover Survey data for September at 10:00am EST.
Meanwhile, earnings reports are expected today from; Advance Auto Parts (AAP), Lyft (LYFT), D.R. Horton (DHI), Rockwell (ROK), Kodak (KODK), Hain (HAIN), Datadog (DDOG) and Rackspace (RXT).
TODAY'S TOP HEADLINES
Coronavirus: Vaccine News Faces Tough Questions. (Bloomberg)
After a frenzy of vaccine optimism lifted global stocks to a record and sent havens into a tailspin, some strategists said the moves may have gone too far and that tough questions remain unanswered.
Today's Economical Announcements.
10:00AM - ★★★ - JOLTs Job Openings (Sep) (Previous: 6.493M)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Beyond Meat (BYND): [EARNINGS] Reported an unexpected loss and lower-than-expected sales. Sales growth was the slowest since Beyond Meat’s initial public offering in May 2019.
CyberArk Software (CYBR): [EARNINGS] Reported adjusted quarterly earnings of 31 cents per share, 2 cents above estimates, although revenue fell short of Wall Street forecasts. CyberArk also gave a current quarter revenue forecast that falls below consensus estimates.
Norwegian Cruise Line Holding (NCLH): [EARNINGS] Reported a quarterly loss of $2.35 per share, wider than the loss of $2.25 expected by analysts, while revenue was below estimates as well. Norwegian did say that demand for future cruises remains, especially for the second half of 2021.
Microsoft (MSFT): [NEWS] Unveiled two new Xbox gaming console models, as the pandemic drives a boom in online gaming. The Xbox Series X will sell for $499.99 while the Series S will cost $299.99.
Novavax (NVAX): [EARNINGS] Reported an unexpected loss for its latest quarter, with the drug maker’s revenue also missing analyst forecasts.
Lowe’s (LOW): [NEWS] Said it is not in talks to buy industrial products distributor HD Supply, pushing back on a Bloomberg report that said the two sides were in talks.
Simon Property Group (SPG): [EARNINGS] Reported adjusted quarterly profit of 48 cents per share, well below 90 cent consensus estimate, with the mall operator’s revenue also falling short of Wall Street forecasts. Simon’s results were impacted by retail tenants who paid lower rents amid the pandemic or missed payments altogether.
DR Horton (DHI): [EARNINGS] Reported quarterly profit of $2.24 per share, beating the consensus estimate of $1.76, with revenue also above forecasts on an increase in closed sales and net orders. DR Horton also raised its dividend and issued an upbeat 2021 outlook.
Advance Auto Parts (AAP): [EARNINGS] Beat estimates by 15 cents with adjusted quarterly earnings of $2.81 per share, with revenue beating estimates as well. The results were helped by an ongoing increase in do-it-yourself repairs prompted by the pandemic.
Hain Celestial (HAIN): [EARNINGS] Came in 7 cents ahead of Street forecasts with adjusted quarterly profit of 27 cents per share, with revenue also beating forecasts. Hain is expecting continued profit margin and earnings expansion in fiscal 2021, but is not giving specific financial guidance.
NextEra Energy (NEE): [NEWS] Offered $15 billion in stock to acquire Kansas City based utility Evergy, according to people familiar with the matter who spoke to Reuters. NextEra was rebuffed and it is unclear whether it will make a new approach to Evergy.
Tesla (TSLA): [NEWS] Will reimburse some Model X and Model S owners to cover issues with a memory device that caused touchscreen blackouts. The automaker will also expand its warranty to include that issue.
Occidental Petroleum (OXY): [EARNINGS] Reported a larger than expected third quarter loss, hit by a plunge in crude oil prices.
DECLINERS: APT, W, VIR, CODX, VAPO
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