Here are the top news, trends, and analysis investors need to start their trading day:
1. Wall Street will rebound as Dow seeks another record
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Dow futures gained ground on Tuesday, a day after the 30-stock average gave up early gains and lost nearly 100 points as concerns over Covid and economic growth at its peak overshadowed strong gains. The S&P 500 fell slightly and the Nasdaq rose slightly. The Dow and S&P 500 finished less than 1% from last week’s record high. The Nasdaq ended a little more than 1% below its record high of last week.
PepsiCo announced Tuesday that it had agreed to sell Tropicana, Naked and other North American juice brands to a French private equity firm for $ 3.3 billion. The food and beverage giant receives a 39% stake in a newly established joint venture with PAI Partners and the exclusive US distribution rights for the juice brands for certain channels such as Food Service. The PepsiCo share rose slightly before the IPO.
2. The yield on 10-year government bonds falls again after the sharp decline on Monday
Bond yields fell Tuesday morning, with ten-year government bond yields up 1.17%, despite concerns about a slowdown in growth. Bond yields move in the opposite direction to prices. The yield on 10-year US Treasuries fell as low as 1.15% on Monday after data showed that the US manufacturing sector expanded more slowly in July than in the previous month. Federal Reserve Governor Christopher Waller told CNBC on Monday that the central bank could begin curbing its bond purchases as early as October.
3. The average daily new US Covid cases exceed last summer’s values
A poster for health workers in New Orleans with the slogan “Won’t Bow Down” can be seen on Frenchmen Street on April 4, 2020 in New Orleans, Louisiana.
Chris Graythen | Getty Images
The spread of the Delta Covid variant has fueled the uncertainty in the financial markets. The seven-day average of new daily coronavirus cases in the US hit 72,790 on Friday, beating the high last summer when the nation had no Covid vaccine, according to CDC data. On Monday, the 7-day average was 85,459. The CDC said 80% of all U.S. counties have high and significant Covid transmission rates. To combat the surge, Louisiana became the second state on Monday to revive its mask mandate and join Nevada. San Francisco and neighboring counties have reintroduced the mask mandate. McDonald’s, Target, and Kohl’s were the latest companies to promote masks for store workers in high-risk areas.
4. Clorox and Eli Lilly see profits hurt by tough Covid comparisons
The canisters of Clorox disinfectant wipes move along a conveyor belt at the company’s manufacturing facility in Forest Park, Georgia on Wednesday, March 10, 2021.
Matt Odom | Bloomberg | Getty Images
Clorox projected full-year sales that were below Wall Street estimates as demand for bleach, wipes, and other surface cleaners fell from pandemic highs and its premarket shares fell more than 11%. The company’s latest quarterly results and sales fell short of expectations. Sales in the company’s health and wellness division, the company’s top-selling unit and home to Clorox disinfectant wipes, fell 17%.
An Eli Lilly and Company pharmaceutical manufacturing facility is pictured on March 5, 2021 at 50 ImClone Drive in Branchburg, New Jersey.
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Eli Lilly fell short of quarterly earnings and sales expectations, hurt by weaker sales of its Covid therapies as vaccinations picked up in the US. Sales of its antibody treatments declined over 80% for the quarter. Lilly lowered her sales expectations for these drugs in April. With a view to the future, the drug manufacturer lowered its annual sales forecast. The share lost around 1.5% in the pre-trading period.
5. Simon sees Under Armor’s sales surge as retail rallies
People walk past an Under Armor clothing store in Siam Center in Bangkok.
Guillaume Payen | SOPA Pictures | LightRakete | Getty Images
Under Armor’s second quarter results and revenue beat analyst estimates as turnaround efforts took hold. The sportswear maker also raised its sales outlook on Tuesday, saying sales for 2021 will grow a low 20 percent compared to an earlier forecast of a high ten percent increase. The shares rose 6% before the IPO.
Shoppers climb and descend escalators at King of Prussia Mall, owned by Simon Property Group, the United States’ largest retail store, in King of Prussia, Pennsylvania.
Mark Makela | Reuters
Simon Property Group saw sales in their malls and outlet centers return to pre-pandemic levels in the last fiscal quarter as Americans shopped for clothes, shoes, and other items. The largest U.S. mall owner hopes the improved results will encourage retailers to sign new leases and fill in space vacated during the pandemic. Shares rose about 3% in the premarket on Tuesday.
– Reuters contributed to this report. Follow all market activity like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.