Wall Street set for a mixed start to the week as bond yields fall


Futures point to a mixed session

U.S. stock futures are pointing to a mixed start for Wall Street on Monday as market participants continued to focus their attention on bond yields, which have risen sharply in recent weeks.

As of 5:20 a.m. ET, futures tied to the blue-chip Dow were indicated 118 points, or 0.36% lower to 32,385. S&P 500 futures dropped 5.87 points, or 0.15% to 3,893.88 while the tech-heavy Nasdaq 100 climbed 50.38 points, or 0.39% higher to 12,894.88.

The 10-year U.S. Treasury yield was at 1.684% after jumping above 1.7% last week, its highest mark in over a year.

AstraZeneca says its vaccine is 79% effective in U.S. trial

Meanwhile, the Covid-19 vaccine developed by AstraZeneca (NASDAQ: AZN) and Oxford University was found to be 79% effective in preventing the virus in a U.S. trial that involved more than 30,000 participants.

According to the company, the vaccine was also shown to be “100% effective at preventing severe disease, death and hospitalization,” boosting confidence in the jab globally following confusion over its possible side effects efficacy, and dosing regimen.

While the shot has not been approved for use in the U.S., there will likely be sufficient efficacy and safety data to help it receive emergency use authorization next month.

AstraZeneca stock was up 2.11% to $50.25 a share in Monday’s pre-market trading session.

Canadian Pacific railway to buy Kansas City Southern for $25 billion

On the M&A front, Canadian Pacific Railway (NYSE: CP) has agreed to buy Kansas City Southern (NYSE: KSU) in a $25 billion cash and stock offer valued at $275 a share.

The railroad companies said in a press release Sunday that the deal has a total enterprise value of nearly $29 billion when including the assumption of $3.8 billion of outstanding Kansas City Southern debt.

If the U.S. Surface Transportation Board approves the deal, the companies will merge to create “the first U.S.-Mexico-Canada railroad.”

Shares of Canadian Pacific tumbled 3.56% to $365 each in pre-market trading session Monday. Kansas City Southern stock was indicated 16.66% to $261.50 a share.