What to watch today: Dow futures up, Nasdaq futures down as rotation out of tech continues
Dow futures pointed to a gain at Tuesday's open after the 30-stock average surged 834 points, or nearly 3%, on trial data showing more than 90% efficacy for Pfizer's Covid-19 vaccine. The Dow, at Monday's highs, soared more than 1,600 points, eclipsing February's all-time intraday high. However, the Dow finished 393 points short of February's closing record high. The S&P 500 also paired gains by the close after topping September's intraday all-time high early during Monday's session. (CNBC)
The Nasdaq closed lower as investors bailed on so-called stay-at-home tech stocks and piled into pummeled travel stocks on the hope that a coronavirus vaccine would soon help beat back the pandemic. That rotation trade was continuing, albeit at a slower pace, in Tuesday's premarket. Nevertheless, Nasdaq futures were sharply lower. (CNBC)
* Cramer expects a ‘multiday sell-off’ in stay-at-home plays (CNBC)
* After a 9% gain in six days, the stock market nears overbought territory (CNBC)
* Stanley Druckenmiller says he wouldn’t want to be short market (CNBC)
On today's economic calendar, the Labor Department issues its Job Openings and Labor Turnover Survey, or JOLTS, for September at 10 a.m. ET. Economists expect the JOLTS to show 6.3 million job openings as of Sept. 30, compared to 6.5 million a month earlier. CNBC's Steve Liesman Interviews San Francisco Fed President Mary Daly at 11:20 a.m. ET on "Squawk Alley." On the earnings calendar, Lyft (LYTF) reports after today's closing bell. (CNBC)
IN THE NEWS TODAY
About 12 hours after the Pfizer vaccine announcement, the FDA said Monday evening it approved emergency use authorization for Eli Lilly's experimental Covid-19 antibody drug treatment. Chris Christie, former New Jersey governor and ally of President Donald Trump, was given the Lilly treatment when he was in the hospital with coronavirus earlier this fall. Among the treatments that Trump received when he had Covid-19 was an antibody regimen from Regeneron Pharmaceuticals that's similar to the Lilly drug. Lilly shares rose 3% in Tuesday's premarket. (CNBC)
* Eli Lilly’s coronavirus antibody treatment will be needed even if there is a vaccine, CEO says (CNBC)
The treatment and vaccine news comes as new daily coronavirus cases in the U.S., as of Monday, topped 100,000 for seven straight days. The U.S. has a total of 10.1 million infections, with 238,251 deaths of Tuesday morning, according to data compiled by Johns Hopkins University. Current hospitalizations for Covid-19 in the U.S., as of Monday, were up 70% from the number recorded on Oct. 9, according to the Covid Tracking Project.
President-elect Joe Biden on Tuesday is set to deliver a speech in defense of Obamacare, on the same day the conservative-dominated Supreme Court hears arguments challenging its constitutionality. Tuesday's case will be the third test of the 2010 health-care law before the Supreme Court. Amy Coney Barrett's confirmation to the nation's highest court last month, which Democrats had unsuccessfully sought to delay until after the election, gives Republican-appointed justices a 6-3 majority. (AP)
Senate Majority Leader Mitch McConnell and some other Republicans are rallying behind Trump's efforts to fight the election results in the courts as the president blocked government officials from cooperating with Biden on a transition of power. Attorney General William Barr also authorized the Justice Department to probe unsubstantiated allegations of voter fraud. (AP)
In further fallout following the election, Trump fired Defense Secretary Mark Esper. The president and Esper clashed this summer over using the military to quell sometimes-violent protests over racial injustice and inequality. (AP)
Shares of Beyond Meat were getting crushed by about 23% in Tuesday's premarket, the morning after the company issued disappointing third-quarter results that capped a volatile day for the stock on Wall Street. It all started Monday when McDonald's announced new plant-based offerings. Confusion ensued about whether Beyond Meat, which made a meatless patty for a McDonald's test in Ontario, would be a supplier for the McPlant. The fast-food giant declined to provide CNBC with any supplier details. But Beyond Meat said it worked with McDonald's on the new line. (CNBC)
* Yum Brands' Pizza Hut adds Beyond Meat's plant-based sausage to its U.S. menu (CNBC)
Target (TGT) and Ulta Beauty (ULTA) announced a deal Tuesday to open makeup and skincare shops inside of hundreds of Target stores across the country. Target CEO Brian Cornell said starting in the second half of next year, shoppers will find a smaller version of an Ulta store in more than 100 of Target's stores and on its website. (CNBC)
* Beyonce, Peloton strike multiyear content partnership, sending bike maker’s shares higher (CNBC)
German electric scooter rental firm Tier announced Tuesday that it's raised $250 million in a funding round led by SoftBank's second Vision Fund. It's the first time the Japanese tech investor has made a bet on the nascent scooter-sharing industry and comes as a number of countries in Europe re-enter lockdowns to slow a resurgence in coronavirus cases. (CNBC)
* SoftBank is considering moving its Vision Fund from London to Abu Dhabi (FT)
Tesla (TSLA) will reimburse some Model X and Model S owners to cover issues with a memory device that caused touchscreen blackouts, according to customer letters seen by CNBC. The automaker will also expand its warranty to include that issue. The Model S and Model X vehicles potentially affected were made from late 2012 to early 2018.
Nikola (NKLA) and its founder Trevor Milton received grand jury subpoenas from the Justice Department in September in connection to allegations of fraud by short-seller Hindenburg, the embattled electric-truck maker said in a regulatory filing late Monday. Separately, two women also have filed sexual assault claims with Utah authorities against Milton. (CNBC)
The European Commission said Tuesday that Amazon (AMZN) breached European antitrust rules by using independent sellers' data for its own benefit. It has also announced a second formal investigation into the company's e-commerce processes.The issue arises because of Amazon's dual role in selling products itself, and acting as a platform for independent, sometimes rival, sellers. (CNBC)
Tropical Storm Eta was spinning off western Cuba on Tuesday after drifting away from South Florida, where it unleashed a deluge that flooded entire neighborhoods and filled some homes with rising water. Eta barely hit land late Sunday as it blew over Lower Matecumbe Key. The storm is expected to weaken in the coming days with a possible track toward the U.S. Gulf Coast later this week. (AP & Weather Channel)
STOCKS TO WATCH
Homebuilder DR Horton (DHI) reported quarterly profit of $2.24 per share, beating the consensus estimate of $1.76, with revenue also above forecasts on an increase in closed sales and net orders. DR Horton also raised its dividend and issued an upbeat 2021 outlook.
CyberArk Software (CYBR) reported adjusted quarterly earnings of 31 cents per share, 2 cents above estimates, although revenue fell short of Wall Street forecasts. CyberArk also gave a current quarter revenue forecast that falls below consensus estimates.
Advance Auto Parts (AAP) beat estimates by 15 cents with adjusted quarterly earnings of $2.81 per share, with revenue beating estimates as well. The results were helped by an ongoing increase in do-it-yourself repairs prompted by the pandemic.
Hain Celestial (HAIN), an organic-products maker, came in 7 cents ahead of Street forecasts with adjusted quarterly profit of 27 cents per share, with revenue also beating forecasts. Hain is expecting continued profit margin and earnings expansion in fiscal 2021, but is not giving specific financial guidance.
Lowe's (LOW) said it is not in talks to buy industrial products distributor HD Supply, pushing back on a Bloomberg report that said the two sides were in talks. HD Supply shares had surged after Monday's closing bell following that report.
Novavax (NVAX) reported an unexpected loss for its latest quarter, with the drug maker's revenue also missing analyst forecasts.
Simon Property Group (SPG) adjusted quarterly profit of 48 cents per share, well below 90 cent consensus estimate, with the mall operator's revenue also falling short of Wall Street forecasts. Simon's results were impacted by retail tenants who paid lower rents amid the pandemic or missed payments altogether.
Microsoft (MSFT) unveiled two new Xbox gaming console models, as the pandemic drives a boom in online gaming. The Xbox Series X will sell for $499.99 while the Series S will cost $299.99. Separately, Apple (AAPL) holds an event today when the tech giant is expected to announce new Macs.
NextEra Energy (NEE) has offered $15 billion in stock to acquire Kansas City-based utility Evergy (EVRG), according to people familiar with the matter who spoke to Reuters. NextEra, the world's biggest solar and wind energy producer, was rebuffed and it's unclear whether it will make a new approach to Evergy.
Norwegian Cruise Line (NCLH) reported a quarterly loss of $2.35 per share, wider than the loss of $2.25 expected by analysts, while revenue was below estimates as well. Norwegian did say that demand for future cruises remains, especially for the second half of 2021.
Occidental Petroleum reported a larger than expected third quarter loss, hit by a plunge in crude oil prices.
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