Here are five things you must know for Tuesday, October 5:
1. -- Stocks Futures Rebound As Bargain Hunters Swoop In On Tech
U.S. equity futures rebounded from the lowest levels since July Tuesday as investors eyed bargains in battered tech stocks while tracking inflation pressures in the global economy.
A near 5% decline for Facebook FB yesterday, alongside a broader sell-off in tech stocks partly linked to rate pressures, loped more than 2.1% from the Nasdaq and spilled over into markets around the world.
Many of the same concerns remain Tuesday, with a global energy crunch lifting oil prices to the highest in seven years, inflation momentum accelerating amid supply chain disruptions and soaring input costs, and the specter of a U.S. default as lawmakers continue to haggle over the extension of the country's $28.4 trillion debt ceiling.
Still, a solid rebound for European stocks on Tuesday, powered in part by a robust near-term outlook for chipmaker Infineon, is providing firm enough platform for U.S. stocks to mount a modest comeback from yesterday's slump.
Futures contracts tied to the Dow Jones Industrial Average are indicating a 135 point opening bell gain, while thee broader S&P 500, which is now 5% south of its September 2 peak, is priced for a 18.5 point move to the u[side . Nasdaq Composite futures, meanwhile, are set for an 80 point gain as benchmark 10-year note yields ease to 1.489% in overnight trading.
2. -- Facebook Recovers From 'Faulty Confirguation' Outage; Shares Bounce
Facebook shares look set for a modest rebound Tuesday as the social media giant slowly returns to full service following its longest outage in more than a decade.
Facebook's main page, as well as its Instagram and WhatsApp divisions, suffered a six-hour outage yesterday, thanks to what the company called a "faulty configuration change" that locked-out 3.5 billion users from its global platform.
"We’ve been working as hard as we can to restore access, and our systems are now back up and running," the company said in a blogpost late Monday. "The underlying cause of this outage also impacted many of the internal tools and systems we use in our day-to-day operations, complicating our attempts to quickly diagnose and resolve the problem."
Facebook shares, which shed 4.9% on Monday, were marked 1.6% higher in pre-market trading to indicate an opening bell price of $331.40 each.
3. -- AstraZeneca Seeks FDA Approval For COVID Treatment
AstraZeneca said Tuesday that is has asked U.S. heath officials to formally approve a coronavirus treatment designed for patients with compromised immune systems.
The Anglo-Swiss drugmaker said the antibody therapy, known as AZD7442, was able to reduce the risk of patients developing COVID symptoms by as much as 77% in late stage trials. The formal request for Emergency Use Authorization from the Food & Drug Administration comes as the group continues to lobby for clearance of its coronavirus vaccine, 'Vaxzevria, for patients in the United States.
AstraZeneca's U.S.-listed shares, which have gained around 20% so far this year, were marked 0.13% lower in pre-market trading to indicate an opening bell price of $60.46 each.
4. -- Qualcomm Buys Auto Tech Group Veoneer For $4.5 billion
Qualcomm (QCOM) - Get QUALCOMM Incorporated Report, along with investment group SWW Partners, agreed late Monday to buy Sweden-based Veoneer (VNE) - Get Veoneer, Inc. Report in a deal that values the automotive technology group at around $4.5 billion.
Qualcomm and SWW Partners will pay $37 a share for Veoneer, with Qualcomm ultimately acquiring its advanced driver assistance systems program and SWW Partners leading the eventual sales of its restraint control systems and safety businesses.
Qualcomm shares were marked 0.6% higher in pre-market trading to indicate an opening bell price of $127.45 each. Veoneer's U.S.-listed shares slipped 1% to $35.84 each.
5. -- Warren Seeks SEC Inquiry Into Fed Officials' Trading
Senator Elizabeth Warren has asked the Securities and Exchange Commission to investigate the trading history of Federal Reserve officials following news that Vice Chairman Richard Clarida purchased millions in stocks funds ahead of a key statement on central bank policy.
Two other Fed officials -- Boston Fed President Eric Rosengren and Dallas Fed President Robert Kaplan -- were said to have traded millions of dollars worth of stocks last year as Chairman Jerome Powell lead a pandemic support effort that pumped billions into the world's biggest financial system.
Rosengren retried from the Fed last week for health reasons, while Kapaln is due to leave later this week. A Fed ethics committee launched its own investigation into trading rules late Monday.
"The reports of this financial activity by Fed officials raise serious questions about possible conflicts of interest and reveal a disregard for the public trust," Warren said in a letter to SEC Chairman Gary Gensler. "If these trades were based on Fed officials’ knowledge of non-public, market moving information, they may have represented potentially illegal activity."