5 things to know before the stock market opens March 8, 2021

by Buzz Street Times

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

1. Nasdaq set for sharp drop after Friday’s comeback

Scaffolding across from the New York Stock Exchange (NYSE) in the Financial District of New York, on Friday, March 5, 2021.

Michael Nagle | Bloomberg | Getty Images

U.S. stock futures were mostly lower Monday, with a sharp drop in the Nasdaq and tech names indicated to start the new week after Friday’s big turnaround. Tesla shed another 2% in the premarket after closing Friday below $600 per share for the first time since early December. The stock has lost a third of its value since its all-time intraday high in late January.

The Dow Jones Industrial Average, S&P 500 and Nasdaq on Friday all broke three-session losing streaks, with strong advances. For the week, the Dow and S&P 500 gained 1.8% and 0.8%, respectively. However, the Nasdaq dropped 2% last week. The Dow and S&P 500 were up nearly 3% and 2.3%, respectively, since the beginning of the year. The Nasdaq was just above breakeven ahead of Monday’s open.

2. Treasury yields rise after Senate Covid relief bill passage

U.S. Senate Majority Leader Sen. Chuck Schumer (D-NY) speaks during a weekly news conference at the U.S. Capitol on March 2, 2021 in Washington, DC.

Alex Wong | Getty Images News | Getty Images

Senate passage of the $1.9 trillion Covid relief bill Saturday wasn’t enough to put stocks in the green Monday as more economic stimulus on top of an already recovering economy continued to stoke inflation concerns. That’s pushing bond yields higher Monday, with the 10-year Treasury yield trading around 1.6%, shy of Friday’s one-year high. The 10-year yield has risen rapidly since the end of January, adding more than 0.5% in a little over a month.

3. Biden says direct payments of up to $1,400 going out soon

U.S. President Joe Biden speaks during a roundtable meeting with Americans who will benefit from the COVID-19 pandemic relief checks that are a part of the American Rescue Plan on March 5, 2021 in Washington, DC.

Samuel Corum | Getty Images

The Democratic-held House aims to pass the Senate-approved Covid stimulus package on Tuesday and then send it President Joe Biden for his signature. The bill approved in the Senate on Saturday comes with a smaller, compromise federal unemployment benefits boost and without a federal minimum wage increase. The legislation includes direct payments of up to $1,400 to most Americans, which Biden said Saturday could start going out within two weeks.

4. Stocks to watch: Disney, Comcast and General Electric

An entrance area to Disneyland stands empty on September 30, 2020 in Anaheim, California.

Mario Tama | Getty Images

Shares of Disney rose more than 1% in Monday’s premarket trading after California officials on Friday cleared theme parks to open at reduced capacity on April 1. They closed nearly a year ago due to the pandemic. The order includes Disneyland in the southern part of the state, Comcast‘s Universal Studios Hollywood and others. Disney World in Florida and Universal Studios Orlando opened with capacity limits over the summer. Shares of Comcast, parent company of NBCUniversal and CNBC, fell in the premarket.

Larry Culp, CEO, General Electric

Scott Mlyn | CNBC

General Electric is nearing a $30 billion-plus deal to combine its aircraft leasing business with Ireland’s AerCap Holdings, according to The Wall Street Journal. GE Capital Aviation Services is one of the world’s biggest jet leasing companies and leases passenger aircraft made by companies including Boeing and Airbus. Shares of GE rose about 2.5% in Monday’s premarket.

5. Oil prices rise after Saudi Arabia facilities attacked

Brent crude, the international oil benchmark, rose above $70 per barrel Monday for the first time in over a year. The surge came after Saudi Arabia said Sunday its Saudi Aramco facilities were targeted by missiles and drones. Yemen’s Iran-aligned Houthi movement claimed responsibility for the attack. West Texas Intermediate crude, the U.S. benchmark, also moved higher, trading above $66 at nearly a two-year high.

— Follow all the developments on Wall Street in real time with CNBC Pro’s live markets blog. Get the latest on the pandemic with our coronavirus blog.

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