BY THE NUMBERS
Dow futures rose 350 points Monday after the 30-stock average logged its first eight-week losing streak since 1923. The S&P 500 and the Nasdaq posted seven straight losing weeks. The S&P 500 on Friday dipped into bear market territory. But thanks to an incredible late-session rally from steep losses, the broad market index actually finished higher, avoiding a close of 20% or more below its prior high. (CNBC)
Bond prices went lower and yields moved higher Monday as stocks made gains in the premarket. The 10-year Treasury yield was trading around 2.8% ahead of the Fed 's release on Wednesday the minutes from its latest policy meeting earlier this month, which resulted in a 50 basis point rise in rates, double the increase seen in March. The market expects rate hikes at all of the remaining Fed meetings this year. (CNBC)
IN THE NEWS TODAY
President Joe Biden on Monday said he'd be willing to use military force to defend Taiwan, prompting gratitude from the democratic, self-ruled island but sharp criticism from China. The U.S. has traditionally avoided making such explicit security guarantees to Taiwan; and a White House official later walked back Biden's comments, saying they did not reflect a policy shift. (CNBC & AP)
* U.S. announces major Asia economic deal in effort to boost profile, counter China (CNBC)
The international community should have supported Ukraine more back in 2014 when Russia first illegally annexed Crimea, Ukrainian President Volodymyr Zelenskyy said Monday, in a video address to the World Economic Forum in Davos, Switzerland. Zelenskyy called for the "maximum" level of sanctions to be imposed on Russia for its current, unprovoked war in Ukraine. (CNBC)
Pfizer (PFE) and BioNTech's (BNTX) three-dose Covid vaccine for children 6 months to 5 years old was 80% effective at preventing illness during the omicron wave, according to clinical trial results released Monday. A third dose of the vaccine elicited a strong immune response, and it was well tolerated by the kids in the trial. The companies said the majority of side effects were mild to moderate. (CNBC)
* Belgium introduces mandatory monkeypox quarantine as global cases rise (CNBC)
JPMorgan Chase (JPM) reversed course on guidance given in January, saying Monday the bank could achieve a key performance target this year after all. JPMorgan said ta 17% return on tangible common equity "remains our target and may be achieved in 2022," according to an Investor Day presentation. (CNBC)
Bitcoin and other cryptocurrencies are "worth nothing," European Central Bank President Christine Lagarde said in an interview that ran Sunday. Lagarde said she thinks crypto should be regulated to protect inexperienced investors. Her comments come at a time of heightened regulatory scrutiny of the crypto market. (CNBC)
VMWare (VMW) surged 21.3% in premarket trading following multiple reports that it is in advanced talks to be bought by chipmaker Broadcom (AVGO). The two companies are said to be discussing a cash-and-stock deal which could happen soon, according to people familiar with the matter. Broadcom slid 4.3%.
STOCKS TO WATCH
Electronic Arts (EA) rose 2.5% in the premarket after Puck News reported that the company was actively seeking a buyer or merger partner. EA has reportedly held talks with Walt Disney (DIS), Apple (AAPL) and Amazon (AMZN), among others.
GameStop (GME) jumped 3.5% in premarket trading after the video game retailer launched a digital wallet for cryptocurrencies and NFTs.
HP Inc. (HPQ) was downgraded to "neutral" from "buy" at Citi, based on moderating demand for PCs in the near to mid-term. Shares of the computer and printer maker fell 2.7% in premarket action.
Motorola Solutions (MSI) upgraded the communications equipment and software company's stock to "overweight" from "equal-weight," with a number of favorable trends in place including an increase in demand for video surveillance. Motorola Solutions gained 2.5% in the premarket.
Autodesk (ADSK) fell 3.9% in premarket action after RBC cut its price target on the stock to $255 per share from $295 a share. RBC said Street earnings consensus may be too high and that the design software company needs to establish consistency in its results to increase investor confidence.
Boeing (BA) rose 1% in premarket trading after its Starliner spacecraft successfully docked with the International Space Station over the weekend.
Corning (GLW) slid 2.6% in the premarket after Citi downgraded the materials science company to "neutral" from "buy," citing lower PC and tablet demand impacting Corning's optical components business. Citi also notes uncertainty about demand recovery for premium and large-size televisions.