Coffee With Greta: New Week Bounce
DJIA Futures: +237 (+0.7%)
SPX Futures: +33 (+0.8%)
NASDAQ Futures: +125 (+1.1%)
Good morning friends!
Futures are rising as traders attempt to shake off last week.
Let’s get right to it!
New Week Begins Higher
Stocks are rising ahead of the open as traders try to bounce back after the worst week of the year.
As stocks are rising, Treasury yields are slipping.
The 2-year yield is down 2 basis points to 4.78% after briefly hitting the highest level since July 2007 earlier this morning.
The 10-year yield is down 4 basis points to 3.92%.
Although earnings season is winding down, traders are looking ahead to results from some key retailers this week.
Target (TGT), Costco (COST), Lowe’s (LOW), and Macy’s (M) are all scheduled to report in the days ahead.
Durable Goods Orders Slide
Durable goods orders fell more than expected in January as consumers pull back on spending on big items.
Durable goods are items manufactured to last three years or more, like appliances, TVs, autos, and more.
Orders slid 4.5% at the start of the year, worse than expectations for a 3.6% decline.
A 13.3% drop in transportation equipment orders propelled that decline.
December’s increase was revised to 5.1% from 5.6% previously.
But core durable goods orders, which exclude transportation, rose 0.7%, beating expectations for a 0.1% increase.
Union Pacific Rallies After CEO Steps Down
Union Pacific (UNP) shares are rallying 10.2% ahead of the open after the company’s CEO announced he will step down over the weekend.
On Sunday, CEO Lance Fritz said, “Union Pacific has been my home for 22 years and I am confident that now is the right time for Union Pacific’s next leader to take the helm. I look forward to working with the Board as we identify our next CEO to lead the Company into the future.”
The rail operator said it expects to name his replacement this year.
The decision came after hedge fund Soroban Capital Partners called for Fritz to be replaced in a letter on Saturday.
In a letter, the group said, “Unlike typical shareholder engagements which come with numerous demands, Soroban has only one ask — install new leadership who can get the trains to operate safely and on time.”
Soroban urged Union Pacific to consider its former COO Jim Vena for the position.
Seagen Jumps On Reported Pfizer Takeover
Seagen (SGEN) shares are up 13.3% in premarket trade following reports that Pfizer (PFE) is in talks to buy the company.
The Wall Street Journal first reported that Pfizer is in discussions to acquire the biotech company in a deal worth more than $30 billion.
The talks are reportedly still in the early stages.
Seagen currently has a market value of more than $30 billion so any buyout would be at a premium to that.
