Wall Street poised to open mixed after Monday’s sell-off
U.S. stocks look set for a mixed open on Tuesday after yesterday’s sell-off, which was caused by the downfall of hedge fund Archegos Capital Management.
Although losses could mount for some of the banks caught in the spectacular collapse of the hedge fund, traders are optimistic that the worst is behind them.
By 5:30 a.m. ET, futures tied to the blue-chip Dow were indicated 65 points, or 0.2% higher to 33,097. The tech-heavy Nasdaq 100 futures dropped 50.38 points, or 0.39% to 12,894.12 while S&P 500 futures were little changed.
Chewy, Blackberry, Lululemon earnings eyed
Notable companies scheduled to report earnings today include pet food retailer Chewy (NASDAQ: CHWY), BioNTech (NASDAQ: BNTX), McCormick (NYSE: MKC), Lululemon (NASDAQ: LULU), and BlackBerry (NYSE: BB).
BioNTech is expected to report a quarterly loss of $18 cents a share on revenue of $225.53 million.
Analysts expect to report a quarterly loss of $10 cents a share on sales of $1.96 billion after the closing bell. Lululemon is seen posting quarterly earnings of $2.49 a share on revenue of $1.66 billion after the market close.
Boeing shares rise as Southwest airlines orders 100 737 Max jets
Meanwhile, shares of Boeing (NYSE: BA) edged higher in pre-market trading Tuesday after Southwest Airlines (NYSE: LUV) announced yesterday that it is expanding its fleet with an order for 100 737 Max planes instead of buying planes from European aerospace giant Airbus.
It is the biggest order win for Boeing since the Federal Aviation Administration (FAA) lifted the 737 Max safety ban late last year.
Southwest said the agreement underscores its commitment to continued upgrade of its fleet with climate-friendly and more fuel-efficient aircraft.
Boeing stock ended Monday’s regular session with a gain of 2.3% to $250.47. As of this writing, the stock was up 0.59% to $252.00 a share.
FTC ends antitrust case against Qualcomm
In other news, the U.S. Federal Trade Commission (FTC) has dropped its four-year patent licensing lawsuit against chipmaker Qualcomm (NASDAQ: QCOM).
The agency first filed a complaint against the chipmaker in 2017, accusing the company of monopoly in baseband processors, and using its position to overcharge smartphone makers and hurt competition.
A judge for the U.S. District Court ruled in favor of the FTC in 2019. However, the decision was overturned by a three-judge panel of the U.S. Court of Appeals for the Ninth Circuit in August last year.
In a statement published Monday, Acting FTC Chairwoman Rebecca Slaughter cited “significant headwinds facing the Commission in this matter” in deciding to not take the case to the Supreme Court.
Reuters quoted Qualcomm’s General Counsel Don Rosenberg as saying: “We are pleased that the case is over and the Ninth Circuit Court of Appeal’s unanimous decision stands. Now, more than ever, we must preserve the fundamental incentives to innovate and compete.”
