What to Watch Today: Wall Street Looks Lower After Two-Session Winning Streak

Source: NYSE


U.S. stock futures dipped Tuesday after back-to-back gains on Wall Street. The Nasdaq advanced nearly 2% to start the week as Twitter's (TWTR) 27% surge on Elon Musk's new stake in the social network sparked a rally in tech stocks. Twitter added another 5% in Tuesday's premarket on news Musk will join Twitters' board. (CNBC)

Treasury yields rose Tuesday morning and key yield spreads, the 2-year/10-year and the 5-year/30-year, remained inverted. It's a bond market phenomenon that has often preceded economic recessions. Traders were selling bonds at the shorter end of the yield curve on concerns the Federal Reserve will get more aggressive in its interest rate-tightening cycle. Bond prices move in the opposite direction of yields. (CNBC)

U.S. oil prices extended gains Tuesday on supply concerns as the U.S. and its European allies considered new sanctions against Moscow over allegations of war crimes by Russian troops in Ukraine. West Texas Intermediate crude added 1%, rising to more than $104 per barrel after Monday's 4% increase broke a two-session decline. (Reuters)

Two EU officials, who did not want to be named due to the sensitivity of the talks, told CNBC Tuesday the European Commission will propose banning coal imports from Russia. Imposing sanctions on the Russian energy sector has been a challenge for the European Union given the high level of dependency that some countries have on Moscow.

Ukrainian President Volodymyr Zelenskyy is set to address Tuesday's meeting of the U.N. Security Council as images of atrocities emerged as Russian troops pulled back from towns around Kyiv. (AP)


Musk will join Twitter's board of directors after taking a 9.2% stake in the social media company. After he was named to the board, Musk on Tuesday teased in a tweet he would push for adjustments. (CNBC)

Hours after revealing that stake, Musk tweeted a poll Monday night, asking users if they want an edit button. More than 73% of the nearly 2.6 million respondents clicked "yse," which was misspelled by Musk to seemingly make his point that the ability to edit posts should be added to Twitter. (CNBC)

Amazon on Tuesday announced a major commercial rocket deal, signing on with three companies for up to 83 launches of its Project Kuiper internet satellites. One of the companies is Amazon founder Jeff Bezos' Blue Origin. The FCC in 2020 authorized Amazon's system, which the company has said it will "invest more than $10 billion" to build. (CNBC)

The coronavirus outbreak in China's largest city remains "extremely grim," according to the director of Shanghai's working group on epidemic control. Most of eastern Shanghai, which was supposed to reopen last Friday, remained locked down along with the western half of the city. (AP)

The more contagious omicron BA.2 subvariant now makes up 72% of Covid infections that have undergone genetic sequencing in the U.S., according to data from the Centers for Disease Control and Prevention. BA.2 became dominant in the U.S. last week. (CNBC)

Senate Republicans and Democrats reached a deal Monday on $10 billion in additional Covid funding to buy therapeutics and vaccines and maintain the nation's testing capacity if another Covid wave hits the U.S. The amount is less than half the $22.5 billion that President Joe Biden first requested. (CNBC)

Barack Obama returns to the White House for the first Tuesday since Donald Trump's 2017 inauguration. Obama will help President Joe Biden mark the 12th anniversary of the Affordable Care Act. Known as Obamacare, the law was passed when Obama was president and Biden was his vice president. (AP)

Judge Ketanji Brown Jackson is poised to cruise to confirmation as a Supreme Court justice after her nomination cleared a key Senate hurdle Monday and gained the support of two more Republican senators, Mitt Romney of Utah and Lisa Murkowski of Alaska. (CNBC)

General Motors (GM) and Honda will develop a series of affordable electric vehicles based on a new global architecture, the companies announced Tuesday morning. The project will utilize GM's next-generation Ultium battery technology. (CNBC)

Goldman Sachs (GS) said that 236,000 individuals applied for internships globally at the bank, including 79,000 in the Americas, according to data provided to CNBC.

Manhattan residential real estate sales topped $7 billion in the first quarter, marking the strongest-ever start to a year as the market shows no signs of slowing, according to new sales data. The average price of a Manhattan apartment jumped 19% over the previous year's period to $2.04 million. (CNBC)


Carvana (CVNA) ... Carvana was downgraded to "sector perform" from "outperform" at RBC Capital Markets, with the price target for the online car seller's stock cut to $138 per share from $155 per share. RBC bases its call both on valuation and potential difficulty in integrating its recent acquisition of car auction company Adesa. Carvana slid 3.4% in the premarket.

First Solar (FSLR) ... The solar company's stock fell 4.8% in premarket trading after Bank of America Securities downgraded it to "underperform" from "neutral." BofA said investors may be overly optimistic about growth prospects and that a new Commerce Department anti-dumping inquiry into Asian module manufacturers is unlikely to drive pricing power.

Generac (GNRC) ... The maker of backup generators and other energy-related equipment was put on the "Americas Buy List" at Goldman Sachs. Goldman points to a broad product portfolio, an increasing distribution footprint, and the idea that many of Generac's products are in the early stages of adoption. Generac added 2.1% in premarket trading.

Carnival (CCL) ... Carnival rallied 3.6% in the premarket after the cruise line operator said the seven-day period from March 28 through April 3 was the busiest week for new cruise bookings in the company's history.

Nio (NIO) ... Nio gained 1.1% in the premarket following a report in the Financial Times that the China-based electric car maker is speaking with peers about licensing its battery swapping technology.

Farfetch (FTCH) ...The luxury fashion e-commerce company will take a $200 million minority stake in Neiman Marcus as part of a global partnership.

Acuity Brands (AYI) ...The maker of lighting products and building management systems reported quarterly earnings of $2.57 per share, 20 cents a share above estimates. Revenue also topped Wall Street forecasts. The company said it was able to offset significant increases in materials and freight costs with price increases and productivity improvements.

Teva Pharmaceutical (TEVA) ...The drugmaker was upgraded to "overweight" from "equal weight" at Barclays, which cited several factors including increased estimates for Teva's biosimilar version of the immunosuppressive drug Humira. Teva added 1.5% in premarket trading.


The Kansas Jayhawks won their fourth NCAA men's basketball title Monday night, thanks to a second-half flurry that erased a 16-point deficit and eventually overcame North Carolina Tar Heels 72-69 in an epic battle of power programs. (AP)

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