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Here are five things you need to know for Tuesday, December 1:
1. – Stock futures point to a Wall Street rebound
Stock futures suggested Wall Street would rebound on Tuesday as investors awaited testimony from Federal Reserve Chairman Jerome Powell and recalled the best monthly performance for stocks since April.
Contracts linked to the Dow Jones Industrial Average rose 350 points, S&P 500 futures gained 40 points, and Nasdaq futures jumped 111 points.
Stocks fell on Monday, but only after the S&P 500 posted a 10.8% gain in November, its biggest monthly gain since April. The Dow Jones recorded its best month since 1987, up 11.8%, and the Nasdaq also climbed 11.8% in November.
Powell, in testimony made public ahead of his appearance Tuesday before the Senate Banking Committee, said the economic outlook is “extraordinarily uncertain” after the pace of improvement moderates.
While calling the progress in the development of the coronavirus vaccine “very positive,” the central bank chairman also said that a resurgence of the virus in the United States and around the world was “of concern and could happen. prove difficult for the next few months. A full economic recovery is unlikely. until people are convinced that it is safe to re-engage in a wide range of activities. “
Asian stocks ended Tuesday’s session higher on improving Chinese manufacturing activity.
To learn more about Asian markets, read:
Hong Kong and Chinese markets rise on strong manufacturing data from the world’s second largest economy
2. – Tesla will be added to the S&P 500 index in a single tranche
You’re here (TSLA) – Get the report will be added to the S&P 500 Index in a single tranche on December 21, despite concerns about the potential for trading volatility as funds reorganize their holdings to add shares of the electric vehicle company to their portfolios.
S&P Dow Jones Indices have stated that Tesla will be added to the index on the date of the quarterly index rebalancing.
S & P’s decision follows consultations with the investment community.
Tesla “will be one of the biggest significant additions to the S&P 500 over the past decade and will therefore generate one of the largest financing deals in S&P 500 history,” said the S&P Dow Jones Indices in a press release last month announcing the addition.
Tesla, with a market cap of over $ 555 billion, joins the index as the seventh largest component, between Berkshire Hathaway (BRK.A) – Get the report and Visa (V) – Get the report.
Shares of the electric carmaker founded by Elon Musk soared within two weeks of announcing Tesla’s addition to the index. Shares are up about 40% since November 16.
The stock was up 3.9% in pre-market trading Tuesday at $ 589.81.
3. – Tuesday Calendar: Testimonial from Powell, Salesforce Revenue
Tuesday’s economic calendar includes testimony from Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin to the Senate Banking Committee on economic relief spending. The hearing begins at 10 a.m.ET.
The schedule also includes PMI Manufacturing (final) for November at 9.45 a.m., the ISM Manufacturing index for November at 10 a.m. and construction spending for October at 10 a.m.
Revenue reports due Tuesday on Salesforce.com (CRM) – Get the report, Hewlett-Packard Enterprise (HPE) – Get the report, Box Inc. (BOX) – Get the report, NetApp (NTAP) – Get the report and Momo MOMO.
Salesforce is a stake in Jim Cramer Action Alerts PLUS Members Club. Want to be alerted before Jim Cramer buys or sells the stock? Find out more now.
4. – The acquisition of Slack by Salesforce could be announced on Tuesday
Speaking of Salesforce, the deal the company announced to acquire Slack Technologies (JOB) – Get the report could be announced Tuesday after the stock market closes.
According to CNBC, the deal is expected to be half cash and half stock, and will cost Slack a premium over its current price.
Shares of Slack, the business messaging service, fell 1.31% in pre-market trading to $ 42.32. The stock closed on Monday at $ 42.88, up 5.43%.
Discussions between Salesforce and Slack were first reported last week by the Wall Street Journal.
5. – Video zoom slides on indications Growth could slow down
Focus on video communications (ZM) – Get the report declined in pre-market trading on Tuesday after third-quarter earnings and sales beat analysts’ expectations, but the company said growth may slow.
Zoom Video, whose video conferencing software was a hit during the coronavirus pandemic, reported adjusted earnings of 99 cents per share on revenue of $ 777.2 million. Analysts had expected Zoom Video to report a profit of 76 cents on revenue of $ 693.95 million.
“We remain focused on the communication needs of our customers and communities as they navigate today’s environment and adapt to a new world of work from anywhere using Zoom,” said Founder and CEO Eric Yuan in a statement. “Strong demand and execution led to 367% year-over-year revenue growth with strong operating income growth and non-GAAP cash flow in our fiscal third quarter . “
For the fiscal fourth quarter, Zoom Video said it expects profits of between 77 cents and 79 cents per share on revenues of $ 806 million and $ 811 million, well above Wall Street forecasts. But the company’s high-end sales forecast, Bloomberg noted, estimates a 330% increase from the previous year, a slight decline in year-over-year growth compared to the two. previous quarters.
Zoom Video shares fell 5.3% to $ 453 in pre-market on Tuesday.
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