BY THE NUMBERS
U.S. stock futures bounced Tuesday, with investors hoping Wall Street can break its three-session losing streak. The S&P 500 on Monday fell to its lowest level in more than a year. The broad market index dropped 3.2%, closing under 4,000. The Nasdaq tumbled nearly 4.3% and the Dow dropped close to 2%. The Nasdaq’s bear market approached a 30% decline from its last record high in November. The S&P 500 and the Dow moved deeper into correction territory, defined by a drop of 10% or more from their most recent record highs, which were in early January. (CNBC)
* CNBC Investing Club: David Tepper tells Cramer he’s covered his Nasdaq short, thinks selling may be ending
Ahead of two key inflation reports Wednesday and Thursday, President Joe Biden on Tuesday is set to deliver remarks on inflation. The 10-year Treasury yield’s decline from multiyear highs did not seem to help equities Monday. However, the benchmark yield dipped again Tuesday, going below 3%, and stocks advanced in the premarket. (CNBC & Reuters)
One day after sinking nearly 6.1%, U.S. oil prices dropped another roughly 1.5% on Tuesday but remained over $100 per barrel. Elevated crude prices have been reflected at American gas pumps; and on Tuesday, the national average hit an unadjusted-for-inflation record of $4.37 per gallon, according to AAA. (Reuters & CNBC)
Bitcoin rose above $31,000 on Tuesday, one day after falling below that level for a more than 50% decline from November’s all-time high. The recent price drops come amid a broader, multiday sell-off that has ensnared much of the crypto market and equities. (CNBC)
IN THE NEWS TODAY
Peloton (PTON) on Tuesday reported a wider-than-expected quarterly loss and a steep decline in sales, as inventory piled up in warehouses and ate away at the company’s cash. Shares of the connected fitness equipment maker plunged more than 20% in premarket trading. Peloton offered up a weak sales outlook for the current quarter, citing softer demand. The company anticipates that planned subscription price hikes may lead some users to cancel their monthly memberships. (CNBC)
Pfizer (PFE) said Tuesday it will buy migraine drug maker Biohaven Pharmaceutical for about $11.6 billion in cash. Pfizer will acquire all the outstanding shares of Biohaven that it doesn’t already own for $148.50 each in cash. That’s 78.6% higher than Biohaven’s closing price Monday, a premium largely reflect in Tuesday’s premarket. (Reuters)
Novavax (NVAXZ) shares sank over 20% in premarket trading after the vaccine maker missed both top and bottom line estimates for its latest quarter. The miss comes as Novavax shipped just 31 million Covid doses during the quarter, putting it well off the pace of its projected 2 billion shots for 2022. While reiterating its prior 2022 revenue forecast, the company said it expected vaccine sales to accelerate during the current quarter. (CNBC)
Tesla (TSLA) has stopped most of its production at its Shanghai plant due to problems securing parts, according to Reuters, citing an internal memo. It’s the latest in a series of difficulties for the electric vehicle maker’s factory in China’s biggest city, which has been experiencing various levels of lockdowns for more than a month under that country’s zero-Covid policy. (Reuters)
EU industry chief Thierry Breton met Elon Musk in Texas on Monday, and the two signaled agreement on Europe’s digital media regulation ahead of the Tesla CEO’s purchase of Twitter (TWTR). In a video with Breton, Musk said the spirit of the Digital Services Act “exactly aligned” with his thinking. The two did not go into detail on the law, which levies hefty fines on platforms if they do not control illegal content. (Reuters)
STOCKS TO WATCH
Novavax (NVAX) sank 23% in premarket trading after the vaccine maker missed both top and bottom line estimates for its latest quarter. The miss comes as Novavax shipped just 31 million Covid doses during the quarter, putting it well off the pace of its projected 2 billion shots for 2022. While reiterating its prior 2022 revenue forecast, Novavax said it expected vaccine sales to accelerate during the current quarter.
Upstart (UPST) plummeted 51.2% in the premarket despite better-than-expected quarterly results. The decline comes as the AI-powered lending platform operator cut its outlook, saying the current macroeconomic environment is likely to negatively impact loan volume.
AMC Entertainment (AMC) rallied 6.8% in the premarket after reporting a smaller than expected quarterly loss as well as revenue that exceeded analyst forecasts. AMC was helped by the release of popular big-budget movies like “The Batman,” and noted a jump in per-patron revenue above pre-pandemic levels.
Vroom (VRM) surged 38% in premarket trading after the online used-vehicle seller posted a smaller than expected quarterly loss and revenue that exceeded analyst estimates. Vroom also announced that chief operating officer Thomas Shortt would become CEO, as well as unveiling a restructuring that will eliminate about 270 jobs.
Norwegian Cruise Line (NCLH) added 1.6% in premarket trading after saying bookings were now exceeding pre-pandemic levels. Norwegian reported a quarterly loss of $1.82 per share, larger than the $1.53 loss expected by analysts.
Edgewell Personal Care (EPC) fell 6 cents a share shy of estimates, with quarterly earnings of 50 cents per share. The maker of personal care products like Schick razors and Edge shaving cream also raised its sales guidance for the year but lowered its earnings guidance as inflationary pressures persist.
Aramark (ARMK) gained 2.3% in the premarket, following news that the food services company would separate its uniform services unit into a separate company. Separately, Aramark reported quarterly profit that matched estimates, with revenue coming in above consensus.
Trex (TREX) gained 3.3% in premarket action after the maker of outdoor decking and railing materials reported better-than-expected quarterly results. Trex continues to benefit from elevated demand from consumers seeking to renovate outdoor spaces in their homes.