5 things to know before the market opens on Monday July 12

Here are the most important news, trends and analysis investors need to start their trading day:

Dow futures fell more than 100 points on Monday, indicating a retreat to the Wall Street open for the 30-stock average from Friday’s record close. The Dow Jones ended last week with a jump of 448 points, or 1.3%. The S&P 500 and Nasdaq also gained around 1% each, with the two record records also ending. Friday’s rally, which reversed a large sell-off in the previous session, was enough to push all three benchmarks into positive territory.

Ahead of major inflation reports Tuesday and Wednesday – and questions of whether mounting price pressures are transient as the Federal Reserve believes – the 10-year Treasury yield fell to around 1.33% on Monday. The benchmark yield fell to 1.25% Thursday to levels not seen since February. The 10-year yield hit a 14-month high of 1.78% in March. It started 2021 at less than 1%.

The second quarter earnings season is set to begin this week – and if the estimates of incredible growth come true, such results could validate a market that continues to easily shed all worries about its steady march to a record high after a record. According to Refinitiv, profits of S&P 500 companies in the April-June quarter are expected to be up 65% from the same period last year at the height of the Covid pandemic. Banks launch quarterly report, with JPMorgan Chase and Goldman Sachs on Tuesday; Bank of America, Citigroup and Wells Fargo Wednesday; and Morgan Stanley Thursday.

Richard Branson, after nearly 17 years of development and over $ 1 billion invested in Virgin Galactic, has made his dream come true and reached space. Speaking from the cabin of the spacecraft on Sunday, Branson described the flight as “the complete experience of a lifetime.” After landing, he said: “I have dreamed of this moment since I was a child, and honestly, nothing could prepare you to see Earth from space.”

Jeff Bezos is scheduled to make the maiden flight of his space company, Blue Origin, on July 20. With a launch ahead of Bezos and Elon Musk, Sunday’s flight means Branson is the first of the billionaire space company’s founders to pilot his own spacecraft. The Wall Street Journal said Musk bought a ticket for a future Virgin Galactic flight. Neither Musk nor his space company SpaceX immediately responded to the Journal and CNBC for comment.

Pfizer plans to meet with senior U.S. health officials on Monday to advocate for federal authorization of a third dose of its Covid vaccine. Dr Anthony Fauci did not rule out the possibility on Sunday, but said it was too early for the government to recommend another injection. Chief Medical Advisor to President Joe Biden said clinical studies and lab data have yet to fully confirm the need for a booster of the current two-shot Pfizer and Moderna vaccines or the Johnson’s one-shot regimen. Johnson. Fauci said the CDC and FDA did the right thing in pushing back Pfizer’s statement last week that called for another shot.

In the latest fallout from the Chinese government’s crackdown on tech companies in his country, the owner of TikTok has reportedly suspended his overseas IPO plans. ByteDance took a different approach from Chinese ride-sharing giant Didi, which registered in the United States in late June, when it received a warning from the Chinese government, according to the Wall Street Journal.

The Chinese market regulator announced on Saturday that it would block Tencent’s plan to merge the country’s two main video game streaming sites, Huya and DouYu, for antitrust reasons. Tencent is Huya’s largest shareholder with 36.9% and also owns more than a third of DouYu, with the two companies listed in the United States, with a combined market value of $ 5.3 billion.

– Reuters contributed to this report. Follow all market actions like a pro on CNBC Pro. Get the latest pandemic news with CNBC’s coronavirus coverage.