Lordstown Motors, Nvidia, Bitcoin: What to Watch When the Stock Market Opens Today
Here’s what we’re watching as Tuesday’s trading gets underway.
- U.S. stock futures rose, putting indexes on course for further gains as investors awaited fresh data on the health of the housing market.
- Futures tied to the broad S&P 500 index rose 0.3%, while blue-chip Dow Jones Industrial Average futures gained 0.2%. Nasdaq-100 futures rose 0.5%, putting technology stocks on course to rise after the opening bell, a day after they led broader markets higher. Read our full markets wrap here.
What’s Coming Up
- U.S. new-home sales, due at 10 a.m., are expected to fall to an annual pace of 959,000 in April from 1.021 million a month earlier.
- A gauge of consumer confidence in the U.S. in May is also due at 10 a.m.
- Earnings are due from Nordstrom, Urban Outfitters, Intuit and home builder Toll Brothers after the close.
Market Movers to Watch
- Lordstown Motors plunged over 14% premarket. The electric-truck startup said it’s facing higher-than-expected costs and has to cut its 2021 production forecast by at least 50%. It’s also seeking to raise more capital.
- America’s Car-Mart is up 5.6%. The used-car retailer reported earnings after Monday’s close and said it had record revenues last quarter.
- Moderna rose 2.4% after reporting that its Covid-19 vaccine was effective in a study for 12-to 17-year-olds. It plans to apply for authorization from the Food and Drug Administration and other regulators.
- Airline stocks climbed. United Airlines added 3.2% after it said yields generated from ticket sales in the second quarter are better than expected, boosted by domestic travel. Delta Air Lines also rose 2.6%.
- Bitcoin slipped 5% to trade around $37,000, compared to its level at 5 p.m. ET, pulling back after rallying close to $40,000 on Monday evening. Elon Musk tweeted: “Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising.”
- Shares of Argo Blockchain, a British cryptocurrency miner, are up over 10% in London. It said it joined the newly-formed Bitcoin Mining Council to promote energy usage transparency and more sustainable mining practices after speaking with Mr. Musk.
- Dogecoin declined nearly 7% to 33 cents. Mr. Musk also tweeted a Reddit link asking for developers to submit ideas to help build out the cryptocurrency. Another account on Twitter asked him why he’s choosing to support dogecoin over other cryptocurrencies. Mr. Musk replied “Doge has dogs & memes, whereas the others do not.”
- Industrial-machinery firm Nordson rose 4.7% after it boosted financial projections for the year following a strong second quarter.
- Nvidia is up 1.2% in premarket trading, looking like the stock may extend its four-day rally into a fifth day. The chip maker is expected to report earnings on Wednesday.
- Amazon is nearing a deal to buy the Hollywood studio MGM Holdings for almost $9 billion including debt, The Wall Street Journal reported. Its stock is up 0.7% in premarket trading.
- Ethereum soared as much as 28.7% on Monday, notching the biggest intraday jump since Feb. 6, 2018.
- The Nasdaq Composite had its lowest trading volume of the year so far on Monday, when 3.4 billion shares changed hands.
Chart of the Day
- A market reversal has been particularly cruel on China’s next generation of technology stars. Since peaking earlier this year, formerly hot stocks like Meituan, Kuaishou and Pinduoduo have lost nearly half their value, far more than bigger peers like Alibaba or Western heavyweights like Amazon. Read more here.
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Published at Tue, 25 May 2021 13:05:00 +0000