Here are the most important news, trends and analysis that investors need to start their trading day:
Stock futures jump after S&P 500, Nasdaq log 4-day win streaksDow stocks J&J and P&G each fall after earningsBitcoin pushes higher again ahead of first bitcoin ETF launchSEC says brokers are making trading into a game to lure investors10-year Treasury yield ticks higher ahead of housing report
1. Stock futures jump after S&P 500, Nasdaq log 4-day win streaks
Traders work on the floor of the New York Stock Exchange (NYSE), October 12, 2021.
Brendan McDermid | Reuters
2. Dow stocks J&J and P&G each fall after earnings
A healthcare clinician prepares a dose of the Johnson & Johnson vaccine for the coronavirus disease (COVID-19) for a commuter during the opening of MTA’s public vaccination program at the 179th Street subway station in the Queens borough of New York City, New York, U.S., 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. Per-share profit exceeded expectations, while revenue fell short. The Dow stock fell in the premarket. The New York Times reports the FDA is expected to clear J&J and Moderna boosters and allow mix-and-match shots this week. Then the CDC will weigh in. Pfizer boosters were authorized last month.
Bottles of Tide detergent, a Procter & Gamble product, are displayed for sale in a pharmacy on July 30, 2020 in Los Angeles, California.
Mario Tama | Getty Images
Shares of Procter & Gamble, also a Dow component, fell more than 1% in the premarket after the consumer products giant on Tuesday reported better-than-expected earnings and revenue in its fiscal first quarter. However, higher costs were a drag on profit, which was slightly lower than the same quarter a year ago. Revenue grew just 5%.
3. Bitcoin pushes higher again ahead of first bitcoin ETF launch
Bitcoin on display.
Chesnot | Getty Images
Bitcoin rallied again Tuesday, trading above $62,000 and approaching April’s all-time highs near $65,000. With a summer slump that sent bitcoin briefly below $29,000 in the rear view, traders have been powering the world’s largest cryptocurrency higher in advance of Tuesday’s launch of the first U.S. bitcoin futures exchange-traded fund. ProShares said Monday its futures-based Bitcoin Strategy ETF will list under the ticker BITO. Four more ETF providers are hoping to move forward with trading this month. A second futures-based ETF could come as soon as this week.
4. SEC says brokers are making trading into a game to lure investors
A person wearing a protective mask exits from a GameStop Corp. store at a mall in San Diego, California, on Thursday, April 22, 2021.
Bing Guan | Bloomberg | Getty Images
The SEC said online brokerages, enticed to increase revenue through the controversial industry practice of payment for order flow, are turning stock trading into a game in order to encourage activity from retail investors. Wall Street’s main regulator on Monday released its highly anticipated report on the GameStop mania earlier this year. It detailed how the trading frenzy went down and raised red flags on a number of issues, including the back-end payments that brokerages receive, gamification of trading, as well as disclosures on short sales. But it stopped short of laying blame on a single cause or entity. GameStop shares, already up nearly 900% in 2021, were higher in the premarket.
5. 10-year Treasury yield ticks higher ahead of housing report
New townhomes are under construction while building material supplies are in high demand in Tampa, Florida, May 5, 2021.
Octavio Jones | Reuters
Bond yields rose Tuesday ahead of a key report on the U.S. housing market. The 10-year Treasury yield was trading around 1.6% in the lead-up to the government’s 8:30 a.m. ET release of its latest data on new residential construction. Economists expect September housing starts to dip 0.3% after a strong 3.9% increase in the prior month. Building permits are seen falling 3.4% in September after a 6% advance the prior month. While August overall was strong, U.S. single-family homebuilding fell for a second straight month as builders continued to struggle with shortages of materials and labor.