Stocks set to start the week on a weak note
Nasdaq 100 futures were losing ground in pre-market trading Monday as rising Treasury yields dented sentiment even as the Senate over the weekend passed President Joe Biden’s massive $1.9 trillion coronavirus stimulus bill that provides direct stimulus checks to Americans.
The Senate approved the measure in a 50-49 vote on Saturday, sending it back to the House of Representatives for final approval this week. Under the bill, individuals making up to $75,000 per year and couples earning up to $150,000 per year would be eligible for $1,400 direct payments.
By 5:20 a.m. ET, the tech-heavy Nasdaq 100 futures plunged 234.75 points, or 1.85% to 12,429. The blue-chip Dow futures were indicated 79 points, or 0.25% lower to 31,386 while the S&P 500 futures shed 30.88 points, or 0.80% to 3,808.12.
Meanwhile, 10-year U.S. Treasury yield jumped 5.1 basis points to 1.605% as market participants positioned for a strong economic recovery in 2021.
Crude jumps after attack on Saudi oil facilities
On the commodities front, crude futures climbed early Monday after Saudi Arabia said one of its oil export facilities was attacked by Yemen’s Houthi rebels on Sunday.
According to the Saudi energy ministry, the rebels fired 14 drones and eight missiles at a Saudi Aramco facility at Ras Tanura in a move aimed at “the security and stability of energy supplies to the world.”
As of this writing, U.S. West Texas Intermediate (WTI) crude futures were up 13 cents, or 0.20% to $66.22 a barrel. International Brent crude futures climbed 11 cents, or 0.16% to $69.47 a barrel.
GE reportedly nears $30 billion deal to combine aircraft-leasing unit with AerCap
General Electric (NYSE: GE) is close to a deal worth more than $30 billion to combine its aircraft-leasing business with AerCap (NYSE: AER), according to a Wall Street Journal reported published on Sunday.
People familiar with the matter told the Journal that a deal is expected to be announced Monday if the talks don’t break. General Electric’s aircraft-leasing business, known as GE Capital Aviation Services, leases aircraft to customers ranging from startups to airlines.
As of writing, General Electric stock was up 2.35% to 13.92 a share in pre-market trading Monday.
