Here are the most important news, trends and analysis that investors need to start their trading day:
1. Wall Street looks stable after tech stocks plummeted
Traders work at the New York Stock Exchange (NYSE) on October 25, 2021 in New York.
Spencer Platt | Getty Images
US stock index futures were relatively flat on Tuesday, while tech stocks came under some pre-market pressure on rising bond yields. The high-tech Nasdaq bore the brunt of Monday’s selling as the 10-year Treasury yield surged to about 1.63% after President Joe Biden re-nominated Jerome Powell as Federal Reserve Chairman. Wall Street rallied initially after Powell’s announcement, with the Nasdaq and S&P 500 indices hitting daily record highs and then down 1.26% and 0.3%, respectively. The Dow Jones rose more than 300 points in one phase before losing much of that gain by the close. The 30-share average stayed more than 2% from its record highs on Nov 8.
2. The United States and other countries will discover their strategic oil reserves.
Bloomberg | Bloomberg | Getty Images
The United States announced on Tuesday that is leveraging its Strategic Oil Reserve as part of global efforts by energy-consuming countries to contain skyrocketing fuel prices this year. The coordinated release of the US, India, China, Japan, South Korea and the UK is the first step of its kind. It aims to stem the rise in energy prices after OPEC and its allies rejected repeated requests from the United States and other countries for faster pumping to meet growing demand. Biden faces low approval ratings in part due to high prices for gasoline and other consumer goods during the economic recovery from the pandemic.
3. The White House says the US will not use restrictions to combat Covid.
Jeff Zientes, White House Covid-19 Coordinator, speaks at a press conference at the White House on April 13, 2021.
Lee Vogel | Bloomberg | Getty Images
Biden administration has no plans to contain any future outbreaks of coronavirus with a nationwide lockdown, White House Coronavirus Response Coordinator Jeff Zientes said in a briefing on Monday. The federal government will instead rely on vaccines and drugs to save the country, he said. Covid cases in the US have plateaued between 70,000 and 75,000 a day for nearly three weeks since late October. They recently climbed back to the mid-range of 90,000 a day. Zinz’s comments came as Austria began its fourth nationwide isolation and the Netherlands introduced partial isolation as the infection spiked across Europe.
4. Zoom shares fall as revenue growth continues to slow.
Zoom founder Eric Yuan speaks ahead of the Nasdaq Opening Ceremony on April 18, 2019 in New York.
Kena Bettencourt | Getty Images
Stock Zoom Video Communications fell more than 8.5% in premarket Tuesday, the morning after the company reported continued slowdown in revenue growth due to explosive activity in the early days of Covid. Revenue of $ 1.05 billion for the most recent quarter ended Oct. 31 surpassed forecasts and was up 35% from a year earlier. In previous quarters, revenue growth compared to last year was 54% and 191%, respectively. The company expects revenue to grow by 19% in the next quarter. In the October quarter, Zoom beat earnings forecasts and raised its forecast for the next quarter.
5. Shares of Best Buy, Urban Outfitters are falling due to rising costs.
An employee brings a television set to a shopper’s car at a Best Buy store in Orlando, Florida.
Paul Hennessy | SOPA Images | LightRocket | Getty Images
Best Buy shares fell 11% in premarket Tuesday as investors worried about rising shipping costs and declining demand for consumer electronics in the future. Before the call, the company announced quarterly earnings and revenues that beat forecasts. However, analysts are concerned that Best Buy may face challenges in the coming year as consumers shift their spending to other areas such as travel and entertainment.
Pasadena, California – May 22: Exterior of the Urban Outfitters sign can be seen on May 22, 2021 in Pasadena, California. (Photo RBL / Bauer-Griffin / GC Images)
RBL / Bauer-Griffin | GC Images | Getty Images
Urban Outfitters’ premarket sales fell 11% after the last quarter of the retail chain reflected a shift towards increased online sales, resulting in higher costs due to higher shipping costs and higher wages in its distribution and execution centers. However, Urban Outfitters on Monday reported earnings per share that exceeded expectations.
– Reuters contributed to this report. Monitor all market activities like a pro. CNBC Pro… Get the latest news on the pandemic with CNBC Coronavirus Coverage…