BY NUMBERS
US stock futures rose on Tuesday, adding to Friday’s record closings for the Dow Jones Industrial Average, S&P 500 and Nasdaq. The US stock market was closed on Monday for President’s Day. All three stock benchmarks ended higher last week, in a continuation of February’s strength. For the year, at the close of Friday, the Dow, S&P 500 and Nasdaq rose almost 2.8%, 4.8% and 9.4%, respectively. (CNBC)
The 30-year Treasury yield remained above 2% on Tuesday, as investors watched the progress of Covid’s $ 1.9 trillion stimulus package proposed by President Joe Biden on Capitol Hill and the push for a distribution broader range of coronavirus vaccines in the USA. The 10-year Treasury yield rose to more than 1.26%. (CNBC)
Bitcoin reached a new record on Tuesday, rising from $ 50,000 per unit for the first time, before reducing some of those gains. Large companies announced support for digital currencies last week. Bitcoin more than quadrupled in 2020 and increased by more than 60% this year. (CNBC)
* MicroStrategy shares rise after company reveals plans to sell convertible debt to buy more bitcoin (CNBC)
IN TODAY’S NEWS
More than 3.8 million homes in Texas went dark in the morning on Tuesday, while record low temperatures increased the demand for heating energy that pushed the state’s grid to its limit. Continuous blackouts, typical on hot summer days, were imposed in Texas. The cold climate was part of a strong winter explosion that brought snow, sleet and freezing rain to the southern plains, across parts of the Ohio Valley and the Northeast. (AP)
The energy shortage was so great that wholesale spot prices for electricity in the Texas power grid skyrocketed by more than 10,000% on Monday. Natural gas futures contracts jumped more than 6% on Tuesday morning. However, RBC analysts said: “Certain regional spot prices for natural gas have increased 10 to 100 times in a matter of days.” US oil prices have also risen to a pandemic – above $ 60 a barrel, as drilling and refineries closed due to the cold. (CNBC and Reuters)
House Speaker Nancy Pelosi said on Monday that Congress will establish an independent, September 11-style commission to examine last month’s deadly uprising on the US Capitol. The riot investigations were already planned, with Senate hearings scheduled for later this month on the Rules Committee. (CNBC)
* Op-ed of Senate Republican Party leader McConnell: Acquittal justified the constitution, not Trump (WSJ)
* Parler social media platform is back online in ‘independent technology’ (Reuters)
* New York prosecutors investigating Trump’s properties in Manhattan (WSJ)
Trying to go beyond Trump’s acquittal in last week’s impeachment trial, Biden is set to make his first official domestic trips under his presidency, starting with a CNN city hall in Wisconsin on Tuesday and a visit to a vaccine facility in Wisconsin. Pfizer (PFE) Covid in Michigan on Thursday. (AP)
* Israeli study reveals 94% drop in symptomatic Covid-19 cases with Pfizer vaccine (Reuters)
* Covid syndrome in children is growing and cases are more severe (NY Times)
Marriott International (MAR (announced on Tuesday the death of its CEO Arne Sorenson, who was undergoing treatment for pancreatic cancer. Two weeks ago, Marriott said that Sorenson would temporarily reduce his schedule to facilitate more demanding treatment. Sorenson became the third CEO in the history of Marriott in 2012, and the first without the surname Marriott. (CNBC and press release)
STOCKS TO WATCH
CVS Health (CVS): The pharmaceutical company reported quarterly earnings of $ 1.30 per share, 6 cents above estimates. The revenue also exceeded Wall Street forecasts, helped in part by Covid-19 testing and vaccinations at its locations.
Palantir Technologies (PLTR): Shares in the business analytics firm plunged 6.2% in the premarket after reporting a quarterly loss, although revenue has exceeded Street’s estimates of a jump in new contracts.
AutoNation (AN): The auto retailer beat estimates by 42 cents a share, with quarterly earnings of $ 2.43 per share. Revenue was also above estimates, as demand remains high amid tight inventories. AutoNation announced the addition of $ 1 billion to its share buyback program.
Constellation Brands (STZ): AB InBev (BUD) brewery is suing Constellation for using the Corona brand in its seltzer. AB InBev claims that a 2013 agreement between the two involving the brand did not allow Constellation to use it for products other than beer.
CoreLogic (CLGX): CoStar Group (CSGP) has submitted a new offer to acquire rival real estate data provider CoreLogic in the amount of $ 95.76 per share in shares, following CoreLogic’s February 4 agreement to be acquired by private capital Stone Capital and Insight Partners for $ 80 per share in cash.
Southwest (LUV): The airline said it continues to have a significant year-over-year impact on passenger demand due to Covid-19, although it said it expects an improvement from February to March.
Progressive (PGR): The insurer struck a deal to acquire Protective Insurance (PTVCB) for $ 23.30 per share in cash, compared to the closing of Protective on Friday at $ 15.01 per share. Protective actions increased by 47% in pre-market negotiations.
Apple (AAPL): Nissan has said it is not in talks with Apple over a possible autonomous vehicle joint venture. A Financial Times report said the two companies briefly discussed the matter, but the negotiations faltered.
Toyota Motor (TM): The automaker will suspend production at nine plants in Japan after an earthquake that hit northeast Japan last week. Toyota did not specify the impact on production.
Facebook (FB): Facebook is developing a smartwatch that would have messaging capabilities, in addition to providing information on health and fitness, according to the technology website The Information, citing people familiar with the matter. Sales of the device would begin next year, according to the report.
Nvidia (NVDA): The FTC has opened an investigation into the graphics chip maker’s deal to buy UK-based chip designer Arm Holdings for up to $ 40 billion. The deal was said to have been the subject of protests with the regulators of Alphabet (GOOGL), Qualcomm (QCOM) and Microsoft (MSFT).
Bristol-Myers Squibb (BMY): Bristol and French partner Sanofi (SNY) will pay more than $ 834 million to Hawaii in a case involving the Plavix blood thinning drug. The state accused drug companies of not warning non-white patients of the risks associated with the drug. Bristol and Sanofi said the decision was not consistent with the evidence and promised to appeal.
Cintas (CTAS): The supplier of uniforms and construction services presented a better than expected outlook for the current quarter’s profits, saying it now has a clearer picture of Covid-19’s impact on its business and that its balance sheet remains solid.