Here are the top news, trends, and analysis investors need to get their trading day started:
1. Stock futures start higher in the new month after the sell-off at the end of February
The Wall Street sign can be seen in front of the New York Stock Exchange (NYSE) in New York on February 16, 2021.
Brendan McDermid | Reuters
The US stock futures started the new month significantly higher on Monday. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq all said they rose more than 1% each to contain the decline in late February. While the rapidly rising bond yields put pressure on stocks last week, the yield on 10-year government bonds fell from an annual high to around 1.43% on Monday. The Dow lost 1.8% and the S&P 500 fell nearly 2.5% over the course of the week. The Nasdaq took the brunt of the tech sell-off, losing 4.9% weekly. However, the strong start in February was enough to see the Dow, S&P 500 and Nasdaq rise nearly 3.2%, 2.6% and almost 1%, respectively, over the month.
Activist investor Jeff Ubben will join Exxon Mobil’s board of directors, CNBC’s David Faber said. Mike Angelakis, Chairman and CEO of Atairos and former CFO of Comcast, also joins the board. The moves come as Exxon has faced shareholder pressure to reorganize its board of directors due to the company’s weak share price. Exxon rose 4% during premarket trading.
2. The US receives the third vaccine against Covid
A health care worker fills a syringe from a vial with a dose of the Johnson & Johnson vaccine against the COVID-19 coronavirus as South Africa continues its vaccination campaign at Klerksdorp Hospital on February 18, 2021.
Phill Magakoe | AFP | Getty Images
The CDC has signed Johnson & Johnson’s one-of-a-kind Covid-19 vaccine for those ages 18 and older as the federal government prepares to ship millions of doses this week. The FDA approved J & J’s vaccine, which showed 72% effectiveness in the US, on Saturday for emergency use. While the other two US-approved vaccines – two-shot regimens from Pfizer and Moderna – each showed over 90% effectiveness, said White House chief medical officer Dr. Anthony Fauci, on Sunday that all three were “really pretty good”. He told NBC’s Meet the Press that Americans should take every vaccine they can get.
3. $ 1.9 trillion in pandemic aid goes to the Senate
Service workers will vote in Washington on January 26, 2021, for the introduction of the wage increase law, which includes a minimum wage of $ 15 for workers with tips.
Ever Countess | Getty Images Entertainment | Getty Images
The House passed a $ 1.9 trillion economic incentive bill advocated by President Joe Biden early Saturday. It included $ 1,400 in direct payments to individuals, a $ 400 weekly rise in federal unemployment through the end of August, and $ billions of dollars in coronavirus vaccine distribution and aid to schools and local governments. The measure goes to the Senate, where a provision to increase the federal minimum wage is likely to be deleted. But as NBC News points out, the rest of the package appeared to be in good shape as the Democrats seek a process that does not require Republican support.
4. “Never bet against America,” says Buffett in an annual letter
Warren Buffett during an interview with CNBC’s Becky Quick on Feb. 24, 2020. It turned out that the billionaire investor was another year of shying away from groundbreaking acquisitions.
Gerald Miller | CNBC
Warren Buffett, the 90-year-old “Oracle of Omaha”, remains a firm believer in the US and said in the publication of his closely watched annual Berkshire Hathaway shareholder letter on Saturday that he should “never bet against America.” In the markets, Buffett said ultra-low interest rates around the world made bonds less attractive. Buffett also said that Berkshire’s annual meeting will be in Los Angeles on May 1, the first time outside of Omaha, Nebraska. Vice Chairman Charlie Munger, who lives in Los Angeles, missed the 2020 meeting due to pandemic travel restrictions. Munger, 97, is expected to join Buffett this year.
5. Buffett relies on Berkshire, Apple remains the front runner
When Covid fallout shook markets in 2020, Buffett said in his letter that Berkshire repurchased approximately $ 9 billion worth of shares in the fourth quarter, bringing the total buyback to a record $ 24.7 billion last year US dollars. Apple remains the conglomerate’s largest common stock investment, which played an important role in offsetting the pandemic damage in Berkshire’s railroad and insurance business in 2020. The letter did not include any succession information or details of what Buffett could do with Berkshire’s more than $ 138 billion in cash on hand at the end of 2020.