What to Watch Today: Stock Futures Fall as the 10-Year Treasury Yield Tops a 3-Year High

Brendan McDermid | Reuters


U.S. stock futures fell Monday, especially tech names — hurt by the 10-year Treasury yield rising to a more than three-year high of around 2.87%. The Dow, the S&P 500 and the Nasdaq all capped a holiday-shortened week with losses. The tech-heavy Nasdaq fell over 2% on Thursday and dropped more than 2.6% for the week. (CNBC)

Bank of America (BAC), the last of the major banks to report earnings, on Monday delivered a better-than-expected 80 cents per share profit on revenue of $23.33 billion. BofA's decision to release $362 million in loan-loss reserves was in contrast to JPMorgan Chase (JPM), which disclosed last week that it opted to build reserves by $902 million. (CNBC)

Other major companies are set to release financial results in the week ahead including Netflix (NFLX), Tesla (TSLA), Procter & Gamble (PG), Johnson & Johnson (JNJ), Verizon (VZ) as well as United (UAL) and American (AAL) airlines. (CNBC)


Elon Musk posted a tweet Saturday, saying "Love Me Tender," days after making an unsolicited $43 billion cash offer to buy Twitter (TWTR). After a TED talk Thursday, Musk hinted at the possibility of a hostile bid, in which he would bypass the social media company's board and put the offer directly to shareholders. (Reuters)

The tweet seemed to imply Musk, the world's richest person and CEO of both Tesla and SpaceX, might seek to buy shares from investors in what's called a tender offer. Twitter on Friday adopted a "poison pill" to limit Musk's ability to raise his stake in the company. Shares of Twitter rose more than 3.5% in the premarket. (CNBC)

* Musk’s tweets about taking Tesla private were false, new court filing says (CNBC)

Rivian Automotive (RIVN) CEO RJ Scaringe said he remains "really confident" the electric vehicle company can produce 25,000 R1 pickups and SUVs in 2022. That estimate is down from initial expectations of about 50,000 vehicles, slashed by supplier disruptions. (CNBC)

* Scaringe warns of looming EV battery shortage, worst than current chip crunch (WSJ)

China's first-quarter gross domestic product grew a faster-than-expected 4.8% despite the impact of Covid lockdowns in March. Beginning last month, China struggled to contain its worst Covid outbreak since the initial phase of the pandemic in 2020. (CNBC)

Three people have died as of Sunday, officials of locked-down Shanghai said, attributing the fatalities to preexisting health conditions. Shanghai began a two-stage lockdown and mass virus testing in late March that was supposed to stop after just over a week later. But authorities have yet to set an end date. (CNBC)

Russian missiles hit Lviv in western Ukraine on Monday, killing at least seven people, Ukrainian officials said, as Moscow's troops stepped up strikes on infrastructure in preparation for an all-out assault in the east. Mariupol, the besieged eastern city, has refused Russia's demand to surrender. (AP)

The mayor of Mariupol said last week that 10,000 civilians have died there. "The targeting of populated areas within Mariupol aligns with Russia's approach to Chechnya in 1999 and Syria in 2016," the U.K. Ministry of Defense said in an intelligence update. (CNBC)

The White House is taking a key step toward ensuring that federal dollars will support U.S. manufacturing, issuing requirements Monday for how projects funded by the $1 trillion bipartisan infrastructure package source their construction material. (AP)

The Biden administration will resume selling leases to drill for oil and natural gas on federal lands starting this week. However, the move will come with a major reduction in the number of acres offered and an increase in the royalties companies must pay to drill. (NBC News)

Infowars on Sunday filed for voluntary Chapter 11 bankruptcy protection in the face of multiple defamation lawsuits. Alex Jones, founder of conspiracy site Infowars, was found liable for damages in a trio of lawsuits filed after he falsely claimed the 2012 Sandy Hook school massacre was a hoax. (Reuters)


Sirius XM (SIRI) fell 2% in premarket trading after Morgan Stanley downgraded it to underweight from equal-weight. Morgan Stanley said auto market headwinds would negatively impact Sirius XM, and also noted the stock's outperformance over the past year.

Nektar Therapeutics (NKTR) cratered 24.4% in the premarket after the drugmaker's halted all trials involving its key cancer drug. The experimental treatment did not produce the desired results in multiple studies.

Bank of New York Mellon (BK) beat estimates by a penny a share, with quarterly earnings of 86 cents per share. Revenue was essentially in line with analysts' predictions. Its results were helped in part by higher interest rates. Shares rose modestly in the premarket.

Southwest Gas (SWX) said its board had authorized the review of a full range or strategic alternatives, after receiving what it called an "indication of interest" well in excess of investor Carl Icahn's $82.50 per share offer. The stock gained 2% in the premarket, trading above $85.

Didi Global (DIDI) fell 18% in Monday's premarket after the China-based ride-hailing firm reported a 12.7% drop in fourth-quarter revenue compared to a year earlier. Didi also said a shareholding meeting would be held on May 23 to vote on delisting from the New York Stock Exchange.

Wendy's (WEN) fell 1.8% in the premarket after BMO Capital downgraded the restaurant operator's stock to market perform from outperform. BMO said Wendy's is less well-positioned for a tighter consumer spending environment than some of its industry peers.

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