5 things to know before the stock market opens on Monday July 19

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

US equity futures were down Monday morning, with Dow futures implying an opening drop of more than 400 points. Futures for the S&P 500 and Nasdaq were also firmly in the red, as investor concerns escalated over the economic implications of a resurgence of Covid cases. Stocks that benefit from a Covid takeover, such as cruise lines, led the pre-market losses.

The futures movement follows negative weeks for the three major US stock indexes, breaking three-week winning streaks for each. The tech-rich Nasdaq was the underperformance, down 1.87% last week. The 30-stock Dow Jones lost 0.52%, while the broad S&P 500 lost 0.97%. The 10-year Treasury yield, which moves inversely to prices, was also down on Monday, falling below 1.25% at one point. The benchmark yield has declined in recent months, after hitting 1.7% in mid-May.

Wall Street will get a better look at the U.S. economic recovery this week thanks to another batch of corporate earnings reports including Netflix, United Airlines and Chipotle after the bell Tuesday, as well as Coca-Cola and Johnson & Johnson before the Wednesday opening.

OPEC and its allies reached a new supply deal, agreeing on Sunday to steadily end 5.8 million barrels per day of reduced oil production by September 2022. Supply increases are expected. start in August, according to an OPEC statement. The deal comes as oil prices have risen significantly this year, following a rebound in demand resulting from the economic crisis caused by the coronavirus pandemic. The deal also comes after OPEC and non-OPEC partners abruptly ended a series of deadlocked meetings earlier this month over a disagreement between Saudi Arabia and the Emirates. United Arabs.

Brent crude was down around 2.6% Monday morning, at $ 71.67 a barrel, while benchmark US West Texas Intermediate crude futures were down more than 2.7% at less than $ 70 a barrel.

Zoom Video Communications plans to buy software company Five9 in a stock transaction valued at $ 14.7 billion, the company’s first acquisition for $ 1 billion. The transaction, announced on Sunday, comes as more companies move away from working entirely remotely during the Covid era and bring their employees back to the office. Zoom has been one of the biggest winners of stay-at-home on Wall Street, with its usage, income and stock prices skyrocketing over the past year. However, the company’s shares have struggled since October, when they hit an all-time high of $ 588.84. The shares fell about 2% in pre-market trading to about $ 355 a piece.

California-based Five9, which closed on Friday with a market cap of nearly $ 12 billion, is a cloud contact center software provider. In a statement, Zoom CEO Eric Yuan said Five9 is “a natural fit that will bring even more happiness and value to our customers.”

Pershing Square Tontine Holdings, an ad hoc acquisition company backed by Bill Ackerman, announced Monday that it no longer plans to buy 10% of the Universal Music group from Vivendi. PSPC’s board of directors unanimously decided against the roughly $ 4 billion deal, according to a letter to shareholders, after discussions with the Securities and Exchange Commission. When announced early last month, the proposed PSPC transaction was notable not only for its size, but also for its multi-part structure. In the letter, Ackman noted that shares of Pershing Square Tontine Holdings had fallen about 18% since the deal was released. “We underestimated the reaction some of our shareholders would have to the complexity and structure of the transaction,” said the billionaire investor. Ackman’s hedge fund is now considering taking a stake in Universal Music Group. “Our counterpart was not left at the altar,” he said in the letter.

Line-up note: Bill Ackman will appear on CNBC’s “Squawk Box” at around 8 am ET.

Almost all remaining Covid restrictions in England were lifted on Monday, even as UK coronavirus cases increase. “Please, please be careful,” Prime Minister Boris Johnson said in a statement. Johnson had previously delayed England’s lifting of most Covid restrictions once due to the highly transmissible delta variant, which public health experts around the world said could derail progress in the fight against the disease. pandemic.

The upcoming Tokyo Olympics also continue to be impacted by Covid, with American tennis star Coco Gauff withdrawing from the Summer Games due to a positive coronavirus test. The Olympics, which were delayed for a year because of Covid, are very controversial in Japan. In a reflection of public opinion, Japanese automaker Toyota will not broadcast any Olympics-related advertising on nationwide television during the Games. Toyota CEO Akio Toyoda and other company executives will also not attend the opening ceremony, which is scheduled for Friday.

In the United States, the seven-day average of new daily coronavirus cases is nearly 32,300, up 66% from a week ago, according to a CNBC analysis of data from Johns Hopkins University. “The only pandemic we have is among the unvaccinated,” President Joe Biden recently said.

Disclosure: CNBC’s parent company, NBCUniversal, owns NBC Sports and NBC Olympics. NBC Olympics is the US licensee to broadcast all Summer and Winter Games until 2032.

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