Here are five things you must know for Tuesday, July 20:
1. — Stock Futures Indicate a Modest Recovery From Monday’s Rout
Stock futures traded higher Tuesday, indicating Wall Street will claw back some losses from Monday’s selloff as investors turned their attention to a slew of earnings reports.
Contracts linked to the Dow Jones Industrial Average rose 204 points, S&P 500 futures were up 22 points and Nasdaq futures gained 74 points.
The yield on the benchmark 10-year Treasury fell Tuesday to 1.174%. It fell below 1.2% on Monday to the lowest levels since February as investors moved into safe-haven assets.
Stocks plummeted Monday as Wall Street weighed what impact rising COVID-19 cases may have on the economic recovery in the U.S. and globally. The Dow dropped more than 700 points, its worst decline since October.
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“Valuations across the market as a whole had become stretched and we were due for a pullback, but many of the cyclical companies are selling off on fears that COVID will stop the recovery in its tracks,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.
“We don’t believe that that’s the case and are willing to let the selloff run its course and buy the dip on the belief that the economy will fully recover and return to its prior growth trajectory, bringing most of the cyclical companies in the airline, travel and leisure industries along with it,” Zaccarelli added.
Benchmark U.S. crude rose 0.63% to $66.84 a barrel early Tuesday after tumbling on worries a resurgence of COVID-19 would sap energy demand.
2. — Tuesday’s Calendar: Netflix and Chipotle Earnings
Earnings reports are expected Tuesday from Netflix (NFLX) – Get Report, Philip Morris (PM) – Get Report, Intuitive Surgical (ISRG) – Get Report, United Airlines (UAL) – Get Report, Chipotle Mexican Grill (CMG) – Get Report and Travelers (TRV) – Get Report.
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The economic calendar in the U.S. Tuesday includes Housing Starts and Permits for June at 8:30 a.m. ET.
3. — Jeff Bezos Prepares for Liftoff
Jeff Bezos, the founder and executive chairman of Amazon.com (AMZN) – Get Report and the richest man on Earth, will be leaving solid ground Tuesday on a flight to space.
Bezos’s Blue Origin space-flight startup will blast him and three other space tourists 66 miles above Earth in a fully autonomous rocket and capsule.
His trip comes a little more than a week after fellow entrepreneur Richard Branson, the founder of Virgin Galactic (SPCE) – Get Report, made the trip to low-Earth orbit space.
Bezos will be accompanied by his brother Mark; Mary Wallace Funk, an aviation pioneer who at 82 will be the oldest person to go into space; and Oliver Daemen, who at 18 will be the youngest person to ever go into space.
“We’ll be building a road to space for the next generation to do amazing things, and those amazing things will improve things here on Earth,” Bezos said at a news conference at Launch Site One in Van Horn, Texas. “We really believe this flight is safe.”
Livestream coverage of the flight can be found on Blue Origin’s website beginning at 7:30 a.m. ET. Liftoff is scheduled for 9 a.m.
4. — Nvidia’s Stock Outperforms
Nvidia (NVDA) – Get Report was rising in premarket trading Tuesday, a day after the chipmaker rose while many of its competitors fell in Monday’s market swoon.
Nvidia’s stock will be split 4-for-1 on Tuesday.
Shares of Nvidia rose 0.88% to $189.45 early Tuesday after jumping 3.41% during the previous session.
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The stock has risen nearly 80% over the past year, giving it a market value of around $453 billion. That is more than rivals Intel (INTC) – Get Report and Broadcom (AVGO) – Get Report combined, a story in The Wall Street Journal noted.
Analysts have piled on the praise for Nvidia since the company’s first-quarter earnings, which were better than expected.
TheStreet’s Brent Kenwell wrote earlier this month that after a recent decline Nvidia shares represented a buy-the-dip candidate.
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Nvidia and Broadcom are holdings in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.
5. — Apple Delays a Return to Offices
Apple (AAPL) – Get Report reportedly has pushed back the date it expects employees to return to the tech giant’s offices because of a resurgence of COVID variants across many countries.
Apple has extended the deadline by at least a month to October at the earliest, Bloomberg reported, citing people familiar with the matter.
CEO Tim Cook had said in June that employees should begin returning to offices in early September for at least three days a week.
But that directive has changed with the iPhone maker becoming one of the first U.S. tech giants to delay plans for a return to the office. Apple will give its employees at least a month’s warning before mandating a return to offices, people told Bloomberg.
The stock gained 0.39% in premarket trading to $143. Shares fell 2.69% on Monday.
Apple is a holding in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stock? Learn more now.