Here are five things you need to know about Tuesday, December 1:
1. – Stock futures point to Wall Street Bounceback
Stock futures predict that Wall Street will bounce back on Tuesday as investors await the testimony of Federal Reserve Chairman Jerome Powell and turn to the best monthly stock performance since April.
Contracts related to the Dow Jones Industrial Average rose 350 points, S&P 500 futures gained 40 points and Nasdaq futures jumped 111 points.
Shares fell on Monday, but only after the S&P 500 reported a 10.8% gain in November, the biggest monthly gain since April. The Dow posted its best month since 1987, at 1
In a statement released before the Senate Banking Committee on Tuesday, Powell said the economic outlook was “unusually uncertain” after a slowdown.
Although he called the progress made in the development of the coronavirus vaccine “very positive”, the chairman of the central bank also said that the resurgence of the virus in the United States and worldwide is “worrying and could be challenging in the next few months.” unlikely until people are sure it is safe to re-engage in a wide range of activities. “
Asian stocks ended the session higher on Tuesday after improving Chinese manufacturing.
For more information on Asian markets read:
Hong Kong and China markets rise due to strong production data from the world’s second largest economy
2. – Tesla to be added to the S&P 500 index in one tranche
Tesla (TSLA) – Receive a 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 shuffle their holdings to add shares of the electric vehicle company to their portfolios.
S&P Dow Jones Indices said Tesla will be added to the index on the date of the quarterly rebalancing of the index.
The S&P decision followed consultations with the investment community.
Tesla “will be one of the largest weight additions to the S&P 500 in the last decade and will therefore generate one of the largest financing deals in the history of the S&P 500,” the S&P Dow Jones Indices said in a statement last month. which is announced for the addition.
Tesla, with a market capitalization of more than $ 555 billion, joins the index as its seventh largest component among Berkshire Hathaway (BRK.A) – Receive a report and Visa (V) – Receive a report.
Shares of the electric carmaker, founded by Elon Musk, have jumped in the two weeks since it was announced that Tesla would be added to the index. Shares have risen about 40% since November 16.
Shares rose 3.9% in pre-trading on Tuesday to $ 589.81.
3. – Calendar on Tuesday: Powell’s testimony, Salesforce revenue
Tuesday’s economic calendar includes testimony from Federal Reserve Chairman Jerome Powell and Treasury Secretary Stephen Mnuchin to the Senate Banking Committee on the cost of economic relief. The hearing begins at 10 a.m. ET.
The calendar also includes PMI Production (final) for November at 9:45 a.m., ISM Production Index for November at 10 a.m. and Construction Costs for October at 10 a.m.
Revenue reports are expected Tuesday from Salesforce.com (CRM) – Receive a report, Hewlett-Packard Enterprise (HPE) – Receive a report, Box Inc. (BOX) – Receive a report, NetApp (NTAP) – Receive a report and Momo MOMO.
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4. – The acquisition of Slack by Salesforce may be announced on Tuesday
Speaking of Salesforce, the company announced a deal to acquire Slack Technologies (WORK) – Receive a report may be announced on Tuesday after the stock markets close.
The deal is expected to be half cash and half share, according to CNBC, and the price of Slack will be exceeded to its current price.
Shares of Slack, the job messaging service, fell 1.31% in pre-trading to $ 42.32. Shares closed at $ 42.88 on Monday, up 5.43%.
Talks between Salesforce and Slack were first reported last week by The Wall Street Journal.
5. – Enlarge videos on indications Growth can be slow
Zoom Video Communications (ZM) – Receive a report fell in pre-trading on Tuesday after third-quarter earnings and sales exceeded analysts’ forecasts, but the company said growth could slow.
Zoom Video, whose video conferencing software was a hit during the coronavirus pandemic, reported adjusted earnings of 99 cents a share on revenue of $ 777.2 million. Analysts expected Zoom Video to report revenue of 76 cents with revenue of $ 693.95 million.
“We remain focused on the communication needs of our customers and communities as they navigate the current environment and adapt to a new world of work from anywhere, using Zoom,” founder and CEO Eric Yuan said in a statement. “Strong demand and performance led to revenue growth of 367% on an annual basis with solid growth in non-GAAP operating revenues and cash flow in our third fiscal quarter.”
For the fiscal fourth quarter, Zoom Video said it expected earnings of between 77 cents and 79 cents a share on revenue of $ 806 million and $ 811 million, well above Wall Street forecasts. But the company’s high-end sales guidelines, Bloomberg notes, calculated a 330 percent increase over a year earlier, a slight drop in growth from the previous year in the previous two quarters.
Shares of Zoom Video fell 5.3% to $ 453 in pre-trading on Tuesday.