What to Watch Today: Dow Set to Drop After Friday Record High



Dow futures fell about 200 points Monday after the 30-stock average, S&P 500 and Nasdaq closed at record highs Friday as Wall Street bet on new fiscal stimulus with Democrats in control of the Senate, House and soon the White House. The 10-year Treasury yield dropped slightly but remained above 1.1% early Monday. Bitcoin, which soared above $41,000 on Friday, plunged 15% since then, including about a 6% decline early Monday. (CNBC)

There are no economic releases scheduled for today, and no major earnings reports either this morning or after today's closing bell. However, earnings season gets underway in earnest later this week, with reports later this week from BlackRock (BLK), JPMorgan Chase (JPM), Citi (C) and Wells Fargo (WFC). Atlanta Fed President Raphael Bostic and Dallas Fed President Robert Kaplan both have public appearances today.  (CNBC)


House Democratic leadership will seek a vote on a resolution calling on Vice President Mike Pence and Cabinet officials to invoke the 25th Amendment and remove President Donald Trump from office, with a full House vote expected Tuesday. After that, Pence and the Cabinet would have 24 hours to act before the House would move toward impeachment. (AP)

D.C. Mayor Muriel Bowser is seeking increased security around next week's inauguration of President-elect Joe Biden following last Wednesday's insurrection at the Capitol. She asked for a "pre-disaster declaration" for the District to allow for federal assistance. (AP)

* Outgoing U.S. Capitol Police chief says his effort to get help was thwarted (Reuters)
* Capitol assault a more sinister attack than first appeared (AP)
* Pence will attend Biden’s inauguration (CNBC)
* Biden chooses veteran diplomat Burns as CIA director (AP)

Twitter (TWTR) shares dropped more than 6% in premarket trading after the social network issued a permanent suspension of Trump's @realDonaldTrump account. Twitter said in a statement Friday it took the action due to the risk of further incitement of violence after last Wednesday's Capitol siege. Last week, Facebook and its Instagram unit blocked the outgoing president's accounts indefinitely. (CNBC)

Apple (AAPL) and Alphabet's (GOOGL) Google both removed Parler from their app stores, and Amazon Web Services stopped hosting the social media operation favored by conservatives, after some rioters used the service to promote the Capitol attack. "We will likely be down longer than expected," Parler CEO John Matze said in a statement. "Most people with enough servers to host us have shut their doors to us. (CNBC)

JPMorgan Chase and Citigroup are among the first major financial firms to pledge to pause political action committee donations after followers of Trump stormed the U.S. Capitol last week. Other companies including Marriott (MAR) and the Blue Cross Blue Shield said they would stop giving money to Republican lawmakers who backed efforts to disrupt the confirmation of President-elect Joe Biden's victory. (CNBC)

* Trump National Golf Club will no longer host 2022 PGA Championship (AP)

CureVac (CVAC) CEO Franz-Werner Haas told Germany's Handelsblatt newspaper that the drugmaker expects to receive approval for its Covid-19 vaccine by the beginning of the second quarter at the latest. The stock, however, is falling in pre-market trading, after surging last week on news of a Covid-19 partnership with Bayer. (CNBC)

* Wall Street analysts are cautiously optimistic on J&J’s ‘one-dose’ Covid vaccine (CNBC)

Gilead Sciences shares rose more than 1% in the premarket after the company Monday raised its full-year profit forecast as a recent resurgence in coronavirus cases boosted demand for its Covid-19 treatment, remdesivir. The antiviral, currently authorized to treat Covid patients across the world, was one of the drugs used to treat Trump's coronavirus infection back in the fall. (Reuters)

Shares of Eli Lilly soared 13% in premarket trading after the U.S. pharmaceutical giant said Monday a trial of its experimental Alzheimer's drug, donanemab, showed it slowed by about a third the rate of decline in a combined measure of cognition and function in early-stage victims of the disease. (Reuters)

A Boeing (BA) Boeing 737-500 jet crashed shortly after takeoff over the weekend from Jakarta's main airport. Divers are now said to be closing in on the black box recording devices, although they have not yet been retrieved. The Sriwijaya Air plane had 62 people on board. Boeing shares dropped 3.3% in premarket trading. (Reuters)


NCR (NCR): NCR is offering to buy Cardtronics (CATM) for $39 per share in cash. Cardtronics – an operator of ATMs and financial kiosks – had agreed to be sold to investment firms Apollo Global (APO) and Hudson Executive Capital for $35 per share in mid-December. NCR is a maker of ATMs and point-of-sale systems. NCR shares fell 2.2% in the premarket.

Sanofi (SNY): The French drugmaker is buying British biopharmaceutical company Kymab for up to $1.45 billion. Kymab specializes in immunotherapy treatments for cancer and other diseases.

Lululemon (LULU): The athletic apparel maker said profit and sales for the quarter ending Jan. 31 will be at the high end of its prior guidance, thanks to strong holiday season demand. The company's shares were down 2.3% in the premarket.

Nio (NIO): Nio may decide to start producing mass-market vehicles under a different brand name, according to the Chinese electric vehicle maker's CEO William Li in comments to reporters over the weekend. He did not give any further details. The company's shares were up nearly 10% in the premarket.

Baidu (BIDU): Baidu shares are up nearly 5% in premarket trading, following news that it struck an electric vehicle partnership with Zhejiang Geely. Zhejiang Geely is the owner of Volvo Cars, and is one of China's largest auto companies.

AT&T (T): AT&T's Warner Bros. studio has designed a new payment plan for movies that appear on its HBO Max service, according to a Bloomberg report. The plan lessens the ties between payment levels and how a movie performs at the box office, given the impact of the pandemic on movie theater attendance.

Apple (AAPL): Apple has held electric vehicle talks with several automakers including Mercedes parent Daimler, according to a report in China-based newspaper China Business News. A separate report in a Korean newspaper said Hyundai and Apple plan to sign an electric car joint venture agreement by March.

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