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 streaks
- Dow stocks J&J and P&G each fall after earnings
- Bitcoin pushes higher again ahead of first bitcoin ETF launch
- SEC says brokers are making trading into a game to lure investors
- 10-year Treasury yield ticks higher after weaker housing data
1. Stock futures jump after S&P 500, Nasdaq log 4-day win streaks
U.S. stock futures rose Tuesday as investors picked through morning Dow stock earnings and looked ahead to afternoon reports from Netflix and United Airlines. The S&P 500 and the Nasdaq on Monday both advanced for the fourth straight session. However, the Dow Jones Industrial Average bucked the uptrend, breaking a two-session winning streak. U.S. oil prices, as measured by West Texas Intermediate crude, hit new seven-year highs Monday near $84 per barrel at one stage. Early Tuesday, WTI was trading above $83 per barrel.
2. Dow stocks J&J and P&G each fall after earnings
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.
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 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
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 after weaker housing data
Bond yields rose Tuesday after weaker U.S. housing data. The 10-year Treasury yield was trading around 1.6% following the government saying that September housing starts dropped a bigger-than-expected 1.6% and building permits declined a disappointing 7.7%. Starts and permits were revised lower in August.