BY THE NUMBERS
U.S. stock futures were mixed ahead of an onslaught of tech earnings this week, starting with Tesla (TSLA) after Monday’s closing. A third of S&P 500 companies are set to report quarterly results in the final week of April, including Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Facebook (FB) and Google-parent Alphabet (GOOGL). Last week, the Dow Jones, S&P 500 and Nasdaq broke multiweek winning streaks with modest losses despite Friday’s rally. (CNBC)
On Monday’s economic calendar, the government reported durable goods orders for March rose just 0.5%. Economists had expected an increase of 2.2% after February’s upwardly revised 0.9% decline. The Fed holds its April policy meeting tomorrow and Wednesday. Central bankers are not expected to take any action but are likely to defend their willingness to let inflation run hot. (Press Release)
Bitcoin popped more than 8% to nearly $54,000 early Monday. Last week, the cryptocurrency slumped under $50,000 after its all-time high near $65,000 on April 14 on growing adoption from institutional investors and companies including Tesla. (CNBC)
Apple announced Monday plans to open a new campus in the Raleigh, North Carolina, area. The tech giant will spend over $1 billion on the complex and employ 3,000 people. The campus is a sign of Apple’s continued expansion beyond its headquarters in Cupertino, California, where most of its engineering has been based. (CNBC)
IN THE NEWS TODAY
President Joe Biden is expected this week to detail his American Families Plan and the tax increases to pay for it, including a much higher capital gains tax for the wealthy. The plan is the second part of his Build Back Better agenda and will include new spending proposals aimed at helping families. According to a new NBC News poll, 59% believe Biden’s infrastructure plan is a good idea. The president overall carries a 53% job approval rating into Wednesday evening’s address to a joint session of Congress. (CNBC)
States began administering Johnson & Johnson‘s one-dose Covid vaccine over the weekend, after federal regulators Friday evening lifted a pause in the U.S., which was recommended on April 13 “out of an abundance of caution” on reports that six women, ages 18 to 48, developed a rare blood clotting disorder. (CNBC)
Sanofi (SNY) will fill and pack millions of Moderna (MRNA) Covid vaccine in an effort to help meet demand for the two-dose inoculation. Sanofi said it will help supply up to 200 million doses of the vaccine at its Ridgefield facility in New Jersey. Financial details of the arrangement were not disclosed. In January, Sanofi pledged to help supply Pfizer‘s (PFE) two-shot vaccine. (Reuters)
India reported 352,991 new Covid cases Monday, a fifth straight 24-hour period of record highs. At least 2,812 people died in a single day, which pushed total fatalities to over 195,000. Media reports suggest the official national death toll is likely undercounted. (CNBC)
The Biden administration said it will immediately make raw materials needed for India’s coronavirus vaccine production available, reciprocating help India provided when U.S. hospitals were strained early in the pandemic. The U.S. will also send therapeutics, rapid diagnostic test kits, ventilators and protective equipment. (CNBC)
STOCKS TO WATCH
Albertsons (ACI) came in 9 cents a share ahead of consensus, with quarterly profit of 60 cents per share. Revenue also beat estimates. The grocery store operator predicted comparable sales for the current fiscal year falling between 6% and 7.5%. The stock was down 1.5% in premarket trading.
Otis Worldwide (OTIS) beat estimates by 9 cents a share, with quarterly earnings of 72 cents per share. Revenue came in above forecasts as well. The maker of elevators and escalators also raised its full-year forecast as organic sales continue to improve. Its stock jumped 5.2% in the premarket.
Check Point Software (CHKP) reported quarterly earnings of $1.54 per share, 4 cents a share above estimates. Revenue topped Wall Street forecasts amid elevated demand for its cybersecurity solutions as many employees continued to work from home.
New York Community Bancorp (NYCB) will acquire fellow regional bank Flagstar Bancorp (FBC) in an all-stock deal valued at about $2.6 billion. Michigan-based Flagstar saw its stock surge 3.6% in the premarket.
Pearson (PSO) reported better-than-expected profit for its latest quarter, with the online education company seeing improved sales of digital course materials and eBooks. The stock jumped 3.1% in premarket action.
Philips (PHG) lifted its full-year forecast after the Dutch health equipment maker reported better-than-expected profit and revenue for its latest quarter. Philips also said it expected growth in its Connected Care unit to slow this year, and put aside 250 million euros for possible risks related to its respiratory care devices. Its stock slid 3.7% in premarket trading.
Kansas City Southern (KSU) said it would open talks with Canadian National Railway (CNI), even though the rail operator said it remained bound by the terms of a takeover agreement Canadian Pacific Railway (CP). The Canadian National deal is worth $325 per share in cash and stock, compared to $275 for the Canadian Pacific offer.
Sinclair Broadcast (SBGI) is evaluating proposals for reworking the debt of its regional sports network unit, according to a Bloomberg report. The TV station operator is also said to be in talks with two sports betting companies for marketing partnerships, similar to the deal it struck last year with Bally’s (BALY).
Coinbase (COIN) shares jumped 4.3% in premarket trading, with the cryptocurrency exchange’s shares moving in conjunction with a rebound in the price of bitcoin this morning.