Here are five things you need to know before Tuesday, July 20:
1. — Equity futures point to a modest recovery from Monday’s price
Stock futures traded higher on Tuesday, indicating that Wall Street will recoup some losses from Monday’s sell-off as investors turned their attention to a slew of earnings reports.
Contracts linked to the Dow Jones Industrial Average were up 188 points, S&P 500 futures were up 19 points and Nasdaq futures gained 65 points.
The return on the benchmark 10-year Treasury rose slightly to 1.2% on Tuesday. It fell below 1.2% on Monday to its lowest level since February, as investors resorted to safe-haven assets.
Shares plunged Monday as Wall Street weighed in on the impact rising COVID-19 cases could have on the economic recovery in the US and globally. The Dow fell more than 700 points, its worst since October.
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“Valuations across the market were stretched and we were ready for a pullback, but many of the cyclical companies are selling out on fear that COVID will stop the recovery in its tracks,” said Chris Zaccarelli, Independent’s chief investment officer. Advisor Alliance.
“We don’t believe that to be the case and are willing to let the sell-off run its course and buy the dip in the belief that the economy will fully recover and return to its previous growth trajectory, leaving most cyclical airline companies, travel and leisure industries,” added Zaccarelli.
Benchmark U.S. crude rose 0.54% to $66.78 a barrel early Tuesday, after falling amid concerns that a resurgence of COVID-19 would undermine energy demand.
2. — Tuesday’s Calendar: Netflix and Chipotle Earnings
Revenue reports expected from Netflix on Tuesday (NFLX) – Get Report, Philip Morris (P.M) – Get Report, Intuitive Surgical (ISRG) – Get Report, United Airlines (UAL) – Get Report, Chipotle Mexican Grill (CMG) – Get Report and Travelers (TRV) – Get Report.
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The US economic calendar on Tuesday includes housing and permit starts for June at 8:30 a.m. ET.
3. — Jeff Bezos prepares for launch
Jeff Bezos, the founder and executive chairman of Amazon.com (AMZN) – Get Report and the richest man on Earth, will leave solid ground on a flight to space on Tuesday.
Bezos’ Blue Origin spaceflight startup will shoot him and three other space tourists 66 miles above Earth in a fully autonomous rocket and capsule.
His journey comes just over a week after fellow entrepreneur Richard Branson, the founder of Virgin Galactic (SPCE) – Get Report, made the journey to low Earth orbit.
Bezos is accompanied by his brother Mark; Mary Wallace Funk, an aviation pioneer who at age 82 will be the oldest person to go into space; and Oliver Daemen, who at age 18 will be the youngest person ever in space.
“We will build a path to space for the next generation to do great things, and those great things will improve things here on Earth,” Bezos said at a press conference at Launch Site One in Van Horn, Texas. “We truly believe this flight is safe.”
Livestream report of the flight can be found at Blue Origin’s website starting at 7:30 a.m. ET. The launch is scheduled at 9:00 a.m.
4. — Nvidia’s Stocks Outperform
Nvidia (NVDA) – Get Report rose in pre-market trading Tuesday, a day after the chipmaker rose as many of its competitors swooned in Monday’s market.
Nvidia shares will be split 4-for-1 on Tuesday.
Shares of Nvidia rose 0.91% to $189.50 on Tuesday, after rising 3.41% during the previous session.
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The stock is up nearly 80% in the past year, giving it a market value of approximately $453 billion. That’s more than rivals Intel (INTC) – Get Report and Broadcom (AVGO) – Get Report combined, noted a story in The Wall Street Journal.
Analysts have praised Nvidia since the company’s first-quarter earnings were better than expected.
Brent Kenwell of TheStreet wrote earlier this month that Nvidia shares represented a buy-the-dip candidate after a recent decline.
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5. — Apple Postpones Return to Offices
Apple (AAPL) – Get Report has reportedly postponed the date that workers are expected to return to the tech giant’s offices due to a resurgence of COVID variants in many countries.
Apple has extended the deadline by at least a month until October at the earliest, Bloomberg reported, citing people familiar with the matter.
CEO Tim Cook had said in June that employees should return to the office for at least three days a week in early September.
But that guideline has changed as the iPhone maker has become one of the first US tech giants to postpone plans for a return to the office. Apple will warn its employees for at least a month before mandating a return to offices, people told Bloomberg.