Editorial Staff1. — Stock Futures Mostly Lower as Taper Bets Rise
Stock futures traded mostly lower Monday as investors increased bets the Federal Reserve would pull back on stimulus following a stronger-than-expected U.S. jobs report.
Contracts linked to the Dow Jones Industrial Average dropped 91 points and S&P 500 futures were down 7 points but Nasdaq futures rose 3 points. The yield on the benchmark 10-year Treasury was down slightly Monday to 1.283%.
The Dow and the S&P 500 closed at records Friday following a jobs report for July that pointed to a labor-market recovery but also boosted expectations the U.S. central bank may soon start paring back its extraordinary stimulus that has underpinned stock market gains. The S&P 500 notched its 44th record close of 2021 on Friday and finished the week with a gain of 0.9%
Dallas Federal Reserve President Robert Kaplan told Bloomberg in an interview the Fed should begin gradually tapering asset purchases sooner rather than later.
“I would be supportive of adjusting these purchases soon, but once we start the adjustment process, I would probably prefer to have it be more gradual,” Kaplan told Bloomberg last week before the jobs report was released.
Prices of commodities, such as oil, slumped on worries that restrictions put in place to curb the spread of the COVID-19 virus variant will crimp demand. West Texas Intermediate crude oil, the U.S. benchmark, fell 3.84% to $65.66 a barrel.
2. — Monday’s Calendar: AMC Earnings, JOLTS Report
The economic calendar in the U.S. Monday includes the Job Openings and Labor Turnover Survey for June at 10 a.m. ET.
Data also is expected this week on consumer prices, producer prices, jobless claims and consumer sentiment.
Earnings reports are expected Monday from AMC Entertainment (AMC), BioNTech (BNTX), Trade Desk (TTD), Barrick Gold (GOLD) and Tyson Foods (TSN).
Earnings will be issued later in the week from Coinbase Global (COIN) , Walt Disney (DIS), fuboTV (FUBO), Wendy’s (WEN), Lordstown Motors (RIDE), NIO (NIO), eBay (EBAY), Bumble (BMBL), Baidu (BIDU), Airbnb (ABNB, DoorDash (DASH) and ContextLogic (WISH).
3. — Tesla Workers Will Have to Wear Masks as Nevada Battery Plant
Tesla (TSLA) – Get Report has told workers at its battery factory in Nevada
they will be required to wear masks indoors starting Monday regardless of vaccination status.
Workers at the Reno-area facility previously had been required to wear a mask if they weren’t vaccinated but could avoid that requirement if they were, people familiar with the matter told The Wall Street Journal
The electric vehicle company made the policy change because of the spread of the
delta variant of the virus and updated guidance from the Centers for Disease Control and Prevention.
Meanwhile, Jefferies boosted its rating on shares of Tesla to buy, and lifted its price target to $850 from $700. The firm cited accelerating earnings at Tesla and growing demand for electric vehicles for its higher rating.
Tesla shares rose 0.97% to $705.86 in premarket trading.
4. — Sanderson Farms Close to Selling Itself for $4.5 Billion
Poultry giant Sanderson Farms (SAFM) – Get Report reportedly is close to reaching an agreement to sell itself for about $4.5 billion.
Sanderson Farms of Laurel, Miss. is in advanced talks with Cargill and agricultural-investment firm Continental Grain, which owns a smaller chicken processor, The Wall Street Journal reported, citing people familiar with the matter.
The deal could be finalized by Monday, the people said. It would value Sanderson at $203 a share, about 30% above the price before the Journal reported in June that the company had attracted interest from suitors.
Shares of Sanderson Farms, the country’s third-largest chicken producer, rose 5.83% to $193.01 in premarket trading Monday.
5. — Cathie Wood’s ARK Snaps Up Shares of Roku
Cathie Wood’s ARK Invest purchased 48,880 shares of streaming media player Roku (ROKU) – Reportedly estimated to be worth more than $19 million, according to a trading update.
Roku shares were rising 0.9% in premarket trading to $395 after tumbling nearly 3% on Friday. The company last week reported stronger-than-expected second-quarter earnings and revenue but fell short on active accounts and streaming hours and also noted higher hardware costs.
Streaming hours in the second quarter declined to 17.4 billion from 18.4 billion in the previous quarter.
Source: The Street
