March 9 Premarket Briefing: 10 Things You Should Know
Updated from 6:43 a.m. EDT.
NEW YORK (TheStreet) -- Here are 10 things you should know for Monday, March 9:
1. -- U.S. stock futures were very mixed Monday, as the Nasdaq dropped more than 1% in premarket trading but the S&P 500 remained steady. Dread over an anticipated interest rate hike was mixed with enthusiasm for Friday's strong jobs report.
European stocks dropped on Monday on fears of an interest rate hike in the U.S., despite the beginning of a eurozone stimulus.
2. -- The economic calendar in the U.S. on Monday was quiet, though jobless claims data, retail sales information and consumer sentiment numbers come in later in the week.
3. -- U.S. stocks on Friday closed sharply down, as investors feared that strong economic data would push the Federal Reserve to raise rates soon. The U.S. added 295,000 jobs in February, more than anticipated.
The S&P 500 (SPY) - Get Report closed down 1.42% to 2,071.26. The Nasdaq (QQQ) - Get Report dropped 1.11% to 4,927.37. The Dow Jones Industrial Average (DIA) - Get Report fell 1.54% to 17,856.78.
4. -- The stock market has now run for six years of gains. The S&P 500 bottomed on March 9, 2009, beaten down by the financial crisis, the collapse of Lehman Brothers, the near-ruin of General Motors (GM) - Get Report, the housing market's slide and other problems. At the 2009 low, the S&P 500 had fallen 57% from its Oct. 9., 2007 highs.
5. -- In the Federal Reserve's bank stress tests, Goldman Sachs (GS) - Get Report didn't perform very well, which may endanger the bank's dividend and its stock buyback plans. If the bank doesn't have sufficient reserves to meet the Fed's requirements, it will need to stop buying back its stock. Stock buybacks increase the earnings per share of outstanding investor stock. Anticipated buybacks are already priced into the stock, so if those buybacks are canceled Goldman shares will likely suffer.
Although the broader banking sector went up Friday, when the stress test results were announced, Goldman stock fell by 1.7%.
In premarket trading, Goldman shares were up 0.13%.
6. -- Tesla (TSLA) - Get Report electric car sales have been slow in China, and the company will be laying off staff there. It's estimated that some 180 jobs will be cut out of 600 Tesla jobs in China. Tesla sold about 2,500 cars in China last year.
Tesla shares sold off Friday, down 3.4% for the day. In premarket trading Monday, Tesla was down 0.12%.
7. -- The list of the U.S.'s largest public companies by market cap has shifted. ExxonMobil (XOM) - Get Report, formerly the No. 2 company in the U.S. after Apple (AAPL) - Get Report, has fallen to No. 4. after a year and a half of selloffs. Google (GOOG) - Get Report (GOOGL) - Get Report jumped ahead into the No. 2 position, and Warren Buffett's Berkshire Hathaway (BRK.A) - Get Report (BRK.B) - Get Report moved into the No. 3 spot.
Exxon stock sank 1.3% on Friday but was up 0.42% in premarket trading.
8. -- Starting Monday, the European Central Bank will begin a stimulus of €60 billion a month, or about $65 billion. As the ECB buys bonds, long-term bond yields are expected to be very low. That will likely push investors to invest more in stocks. The European stock market is already booming, but this move should boost it further.
9. -- The U.S. dollar hit an 11-and-a-half year high against a foreign currency index on Monday. The dollar had its strongest week since 2011. Based on strong employment data last week, investors are expecting the Fed to raise U.S. interest rates later this year, even as Europe and Japan consider stimulus measures.
On Monday $1 would buy €1.089, up from €1.084 Friday, which was the lowest point for the euro since 2003.
10. -- Google (GOOG) - Get Report (GOOGL) - Get Report has debuted a U.S. car-insurance shopping site. The site, called Google Compare, is currently open only to California drivers, although it will likely expand soon.
Google has run a U.K. version of the car-insurance site for two years. Google Compare "is basically a search engine for insurance quotes."
Google's GOOG share class was up 0.03% in premarket trading.