5 things to know before the opening of the stock market February 26, 2021

Here are the most important news, trends and analyzes that investors need to start their trading day:

US futures rallied as tech stocks tried to recover from Thursday’s rotation, which pulled the Nasdaq down 3.5% for its weakest one-day performance in October. . Tesla fell slightly again in the premarket on Friday, a day after sinking 8% in a brutal week. The Dow Jones industrial average fell 559 points, or 1.8%, from a previous session on Thursday. Dow had its worst day in almost a month, as did the S&P 500, which lost almost 2.5%. The culprit behind the sale was the rapid rise in bond yields.

All three stock benchmarks tracked weekly losses. Before the last trading day in February, the Nasdaq was clinging to a gain for that month, which started strong. The Nasdaq fell nearly 7 percent from its Feb. 12 record. The Dow and the S&P 500 both remain strong on the moon. However, the S&P 500 fell nearly 2.7% from its last closing record on February 12.

The 10-year Treasury yield fell on Friday morning, but remained above 1.4%, after rising to 1.6% in the previous session at its highest level in February 2020 and by more than 0.5% higher since end of January. The 10-year yield increase, which is used as a benchmark for mortgage rates and car loans, has been driven by expectations of improved economic conditions as coronavirus vaccines are launched, as well as fears about higher inflation.

A new round of government stimulus checks, approved in December, brought personal income to its biggest monthly gain since April 2020, although inflation remained slim. The Commerce Department reported Friday morning that personal income rose 10 percent in January, slightly exceeding expectations. Personal consumption expenditure inflation equaled estimates to 1.5%.

Inflation worries that the $ 1.9 trillion Covid stimulus bill – which is seen passing the House on Friday – in addition to accelerating growth, could overheat the economy. Capitol Hill Democrats are trying to impose aid measures, including raising the federal minimum wage to $ 15 an hour without GOP support. However, a key nonpartisan official, the Senate MP, said Democrats could not include raising the minimum wage in the bill. The decision means the Senate is likely to adopt a different version of the bill than the House, and representatives will have to approve the plan a second time.

A key FDA advisory committee is due to vote Friday on whether to recommend approval of the Johnson & Johnson single-injection Covid vaccine for emergency use, which would help pave the way for a third preventive treatment in the U.S., while the full FDA does not. has to follow the recommendations of the vaccination committee, often does. During similar vaccine requests from Pfizer and Moderna, the FDA authorized the two-shot regimens of these companies a day after the group of external health advisers upheld the emergency use authorization.

As more and more Americans are vaccinated and the economy continues to open more fully, companies like DoorDash, which benefited from home trade, could be hurt. In its first report as a public company, the food delivery service told shareholders that it expects some of the backwinds it has experienced from U.S. home orders to return once the country control the virus. Shares sank 10% in Friday’s premarket. Even with this decline, DoorDash would continue to rise by almost 50% compared to the December 102 offer price per share. While DoorDash reported earnings of $ 970 million in the fourth quarter late on Thursday, which exceeded estimates, it also reported an adjusted earnings per share of $ 2.67.

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