Here are the most important news, trends and analysis that investors need to start their trading day:
The New York Stock Exchange (NYSE) stands in the Financial District in Manhattan on January 28, 2021 in New York City.
Spencer Platt | Getty Images
U.S. stock futures were lower Monday morning, with Dow futures implying an opening decline of more than 400 points. Futures for the S&P 500 and Nasdaq also were firmly in the red, as investor concerns intensified about the economic implications of a resurgence of Covid cases. Stocks that benefit from a Covid recovery such as cruise companies led the premarket losses.
The move in futures follows negative weeks for all three major U.S. stock indexes, breaking three-week win streaks for each. The tech-heavy Nasdaq was the underperformer, declining 1.87% last week. The 30-stock Dow fell 0.52%, while the broad S&P 500 lost 0.97%. The 10-year Treasury yield, which moves inversely to prices, also was lower Monday, falling below 1.25% at one point. The yield on the benchmark note has declined in recent months, after touching 1.7% in mid-May.
Wall Street will get further insight into the U.S. economic recovery this week thanks to another batch of corporate earnings reports, including Netflix, United Airlines and Chipotle after the bell Tuesday, as well as Coca-Cola and Johnson & Johnson ahead of Wednesday’s open.
An OPEC sign hangs outside the OPEC Secretariat in Vienna, Austria, on Nov. 29, 2017.
Akos Stiller | Bloomberg | Getty Images
OPEC and its allies have settled on a new supply deal, agreeing Sunday to steadily end 5.8 million barrels per day of oil production cuts by September 2022. The supply increases are set to begin in August, according to a statement from OPEC. The deal comes as oil prices have risen considerably this year, following a rebound in demand from the coronavirus pandemic-driven economic slump. The agreement also comes after OPEC and non-OPEC partners abruptly ended a series of meetings in gridlock earlier this month amid disagreement between Saudi Arabia and the United Arab Emirates.
Zoom founder Eric Yuan speaks before the Nasdaq opening bell ceremony on April 18, 2019 in New York City.
Kena Betancur | Getty Images
Zoom Video Communications plans to buy software firm Five9 in an all-stock deal valued at $14.7 billion, the company’s first billion-dollar acquisition. The transaction, announced Sunday, comes as more companies shift away from fully remote work during the Covid-era and bring employees back to the office. Zoom was one of the biggest stay-at-home winners on Wall Street, with its usage, revenue and stock price soaring last year. However, the company’s stock has struggled since October, when it hit an all-time high of $588.84. Shares were lower by about 2% in premarket trading at around $355 apiece.
California-based Five9, which ended Friday with a market cap of nearly $12 billion, is a provider of cloud contact center software. In a release, Zoom CEO Eric Yuan said Five9 is “a natural fit that will deliver even more happiness and value to our customers.”
Bill Ackman, founder and CEO of Pershing Square Capital Management.
Adam Jeffery | CNBC