Here are the top news, trends, and analysis investors need to start their trading day:
1. Stock futures jump to S&P 500, Nasdaq posts 4-day profit streaks
Traders operate on the floor of the New York Stock Exchange (NYSE) on October 12, 2021.
Brendan McDermid | Reuters
2. Dow stocks J&J and P&G each fall on gains
A healthcare doctor prepares a dose of Johnson & Johnson’s Coronavirus Disease (COVID-19) vaccine for a commuter during the opening of MTA’s public vaccination program on the 179th Street subway station in the Queens borough of New York City in front of USA, May 12, 2021.
Shannon Stapleton | Reuters
Johnson & Johnson said in Tuesday’s earnings report that it sold $ 502 million of its Covid vaccine in the third quarter. Earnings per share exceeded expectations while sales fell short. The Dow share fell before the trading day. The New York Times reports that the FDA is expected to release J&J and Moderna boosters and allow mix-and-match shots this week. Then the CDC will intervene. Pfizer boosters were approved last month.
Bottles of Tide laundry detergent, a Procter & Gamble product, will go on sale at a pharmacy in Los Angeles, California on July 30, 2020.
Mario Tama | Getty Images
Procter & Gamble shares, also a Dow component, fell more than 1% pre-IPO after the consumer goods giant reported better-than-expected earnings and sales in the first quarter of the fiscal year on Tuesday. However, higher costs had a negative impact on earnings, which were slightly below the prior-year quarter. Sales increased by only 5%.
3. Bitcoin rises again before the launch of the first Bitcoin ETF
Bitcoin on display.
Chesnot | Getty Images
Bitcoin rebounded again on Tuesday, trading above $ 62,000 and approaching April’s all-time high near $ 65,000. With a slump in summer that briefly sent Bitcoin under $ 29,000 in the rear view, traders pushed the world’s largest cryptocurrency up ahead of the launch of the first US Bitcoin futures exchange-traded fund on Tuesday. ProShares announced on Monday that its futures-based Bitcoin strategy ETF will be listed under the ticker BITO. Four more ETF providers are hoping to move forward in trading this month. A second futures-based ETF could come this week.
4. The SEC says brokers are making trading a game to attract investors
A person wearing a protective mask leaves a GameStop Corp. store on Thursday, April 22, 2021. at a mall in San Diego, California.
Bing Guan | Bloomberg | Getty Images
The SEC said online brokers, seduced by the controversial industry practice of paying for the flow of orders to grow their revenues, are turning stock trading into a game to encourage retail investor activity. Wall Street’s premier regulator released its highly anticipated report on the GameStop mania earlier this year on Monday. It detailed how the trading frenzy subsided and sent red flags on a number of issues, including the back-end payments brokers receive, gamification of the trade, and disclosure of short sales. But it came close to blaming a single cause or entity. GameStop stock, which had already risen nearly 900% in 2021, was higher in the premarket.
5. The yield on 10-year government bonds rises after weaker real estate data
New townhouses are under construction in Tampa, Florida on May 5, 2021 while building material supplies are in high demand.
Octavio Jones | Reuters
Bond yields rose on Tuesday after weaker US housing data. The US 10-year Treasury yield traded around 1.6% after the government said housing starts in September were 1.6% stronger than expected and building permits fell by a disappointing 7.7%. Takeoffs and permits were revised downwards in August.
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