Tesla, General Electric, Nasdaq, XPeng - 5 Things You Must Know Monday

Nasdaq futures sink as investors question valuations of tech stocks; oil prices steady after a Saudi oil terminal is attacked; General Electric's aircraft-leasing unit reportedly is near a deal to merge with AerCap; Tesla continues a sharp slide.
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Here are five things you must know for Monday, March 8:

1. -- Nasdaq Futures Fall Sharply, Oil Prices Steady

Stock futures fell Monday with Nasdaq futures sinking sharply as investors continue to question lofty valuations of high-flying tech stocks.

Oil prices steadied after a Saudi oil terminal was attacked over the weekend.

Contracts linked to the Dow Jones Industrial Average fell 10 points, S&P 500 futures declined 20 points and futures for the tech-heavy Nasdaq dropped 180 points.

Rising bond yields, which have dominated market attention the past few weeks, have been hitting tech shares the hardest since the high-growth stocks can be more vulnerable to inflation pressures.

The yield on the benchmark 10-year Treasury traded at 1.594% early Monday, just below one-year highs, after the Senate passed Joe Biden's $1.9 trillion coronavirus relief package on Saturday.

Brent crude, the global benchmark, traded above $70 a barrel for the first time since January 2020 after Saudi Arabia said its oil infrastructure came under missile and drone attack from Iran-backed Houthi rebels. Saudi Arabia said the attacks were intercepted and oil output appeared to be unaffected, according to reports from Bloomberg and others.

U.S. crude touched its highest prices in more than two years. At last check, West Texas Intermediate crude was up 0.29% at $66.28  barrel.

Stocks rose broadly Friday in a rally that ended Wall Street's three-day losing streak as tech shares rebounded and Treasury yields stabilized. The S&P 500 rose 0.8% last week, its first weekly gain in three weeks, following a better-than-expected U.S. jobs report.

Jobs Report: Jim Cramer Still Doesn't See Economic Recovery Underway

2. -- GE's Aircraft-Leasing Unit Reportedly Near Deal to Merge With AerCap

General Electric  (GE) - Get Report is close to an agreement to combine its jet-leasing business with Ireland’s AerCap  (AER) - Get Report in a deal valued at more than $30 billion.

An announcement is expected Monday, The Wall Street Journal reported, citing people familiar with the matter.

The deal would merge the world’s two biggest aircraft financiers during a tough time for the aviation business, which has been hit hard by the coronavirus pandemic.

The GE unit, known as GE Capital Aviation Services, or Gecas, is the biggest remaining piece of GE Capital, a lending business that GE has been stepping back from. A deal for Gecas, the Journal noted, would represent another big move in that direction.

Gecas leases passenger aircraft made by Boeing  (BA) - Get Report and Airbus as well as regional jets and cargo planes to customers ranging from flagship airlines to startups. Gecas had $35.86 billion in assets as of Dec. 31, according to the Journal. It has more than 1,600 aircraft owned or on order. 

AerCap's market value is about $6.5 billion.

GE shares were rising 2.5% to $13.94 in premarket trading. AerCap gained 10.63% to $56.20.

3. -- Monday's Calendar: XPeng and Stitch Fix Earnings

XPeng  (XPEV) - Get Report declined less than 1% in premarket trading after the Chinese maker of electric cars reported a fourth-quarter loss narrower than a year earlier.

Earnings are also expected Monday from Stitch Fix  (SFIX) - Get Report and Casey's General Stores  (CASY) - Get Report.

Reports will be issued later this week by Dick's Sporting Goods  (DKS) - Get Report, Oracle  (ORCL) - Get Report, Campbell Soup  (CPB) - Get Report, Cloudera  (CLDR) - Get Report, JD.com  (JD) - Get Report and DocuSign  (DOCU) - Get Report

The U.S. economic calendar for Monday includes Wholesale Inventories for January at 10 a.m. ET.

Data will be released later in the week on consumer prices for February, producer prices, jobless claims and consumer sentiment.

4. -- Tesla Extends Sharp Slide

Tesla  (TSLA) - Get Report was falling more than 2% in premarket trading Monday and adding to losses the electric vehicle company has suffered over the past two weeks.

Tesla has fallen more than 23% the past two weeks following a drop of nearly 4% on Friday as interest rates have risen and bitcoin prices have tumbled.

In premarket trading Monday, the stock was down 2.47% to $583.17. Tesla closed at a record high of $883.09 on Jan. 26, a day before benchmark 10-year Treasury yields began a steep ascent amid accelerating inflation forecasts and improving economic growth prospects.

Tesla Facing $275 Billion Market Cap Loss as Bond Yields Surge

Cathie Wood's ARK Innovation ETF  (ARKK) - Get Report, of which Tesla is its largest holding, declined 4.55% to $11.74 in premarket trading Monday.

5. -- It's 'Inevitable' Bitcoin Will Reach $100,000, Says Expert

Bitcoin was rising Monday to $50,061, up 2.06%.

TheStreet conducted an interview with Dave Balter, the chief executive of Flipside Crypto, which provides analytics and business intelligence to crypto organizations and pens a regular column in TheStreet

A few of his takeaways: Bitcoin likely won't ever see $10,000 again.  "That era is long gone," Balter said.

"But will it see $30,000 again? It could happen. Just as $100,000 is inevitable - it’s all a matter of time, Balter said.

More of TheStreet's interview with Balter can be found here: 

Why Bitcoin Won't 'Break': Expert Explains Crypto Boom