Here are five things you must know for Monday, April 19:
1. -- Stock Futures Fall Following S&P 500's Record High
Stock futures traded lower Monday following the S&P 500's fourth straight week of gains amid signs of a strong global recovery from the coronavirus pandemic.
Contracts linked to the Dow Jones Industrial Average fell 68 points, S&P 500 futures were down 10 points and Nasdaq futures fell 58 points.
The Dow and S&P 500 on Friday closed at records for a second day as soaring growth in China and strong U.S. data provided investors with further reason to believe in a surging post-pandemic recovery.
For the week, the Dow rose 1.2%, the S&P 500 gained 1.4%, and the Nasdaq rose 1.1%.
The yield on the 10-year U.S. Treasury declined Monday to 1.559%. Yields have eased in April amid diminished concerns that the Federal Reserve would boost interest rates sooner than expected to curtail recovery-induced inflation.
Tech stocks have benefited from easing yields since the high-growth stocks can be more vulnerable to inflation pressures.
2. -- Monday's Calendar: IBM and Coca-Cola Earnings
Earnings reports are also expected Monday from United Airlines (UAL) - Get United Airlines Holdings Inc. Report and International Business Machines (IBM) - Get International Business Machines Corporation Report.
Earnings are expected later in the week from Netflix (NFLX) - Get Netflix Inc. Report, Johnson & Johnson (JNJ) - Get Johnson & Johnson Report, Procter & Gamble (PG) - Get Procter & Gamble Company (The) Report, Philip Morris International (PM) - Get Philip Morris International Inc Report, Abbott Labs (ABT) - Get Abbott Laboratories Report, Verizon (VZ) - Get Verizon Communications Inc. Report, Chipotle Mexican Grill (CMG) - Get Chipotle Mexican Grill Inc. Report, AT&T (T) - Get AT&T Inc. Report, Dow Inc. (DOW) - Get Dow Inc. Report, Intel (INTC) - Get Intel Corporation Report, Mattel (MAT) - Get Mattel Inc. Report, American Express (AXP) - Get American Express Company Report and Honeywell (HON) - Get Honeywell International Inc. Report.
The U.S. economic calendar is light at the start of the week. Weekly jobless claims and existing home sales for March will be released Thursday, while new home sales for March will be issued Friday.
3. -- Bitcoin Suffers Steep Weekend Drop
Bitcoin remained lower Monday after suffering steep losses on Sunday following a week that sent the world's largest cryptocurrency to record highs.
Bitcoin dropped 15% on Sunday, the most since February. Popular cryptocurrencies ethereum and Dogecoin also saw significant losses.
Last week, bitcoin set a record of $64,829. Early Monday, bitcoin was falling 0.88% to $56,349, according to Coinbase.
CNN reported that the sharp drop in bitcoin over the weekend seems to have been triggered by an unconfirmed Twitter rumor that the U.S. Treasury was planning to crack down on money laundering schemes involving cryptocurrencies. The Treasury declined to comment.
Crypto mania reached a peak last week after Coinbase Global (COIN) - Get Coinbase Global Inc Report went public at a valuation of $86 billion. In its trading debut Wednesday, the cryptocurrency exchange hit a valuation as high as $112 billion.
Dogecoin experienced a rally last week that saw the cryptocurrency rise Friday to an all-time record of 30 cents. Its valuation jumped to as high as $50 billion at one point.
4. -- Tesla Model S in Fatal Crash Reportedly Had No Driver
The Tesla Model S crashed into a tree, caught fire and led to the deaths of the two passengers - one in the front passenger seat and one in back, according to multiple reports quoting local police.
Local television stations in the area quoted police as saying they believed no driver was in the car at the time.
The physical evidence and the positions of the bodies suggested that "no one was in the driver seat driving that vehicle at the time of impact," said Mark Herman, the Harris County constable for Precinct 4.
Firefighters said they "had to call Tesla to figure out how to oust the blaze," according to a Twitter post by a KPRC-2 reporter, Deven Clarke.
Federal officials have criticized Tesla for fire risks related to the battery packs in its cars and for not doing enough to keep drivers from using its driver-assist function inappropriately, Bloomberg noted in a report about the accident.
Tesla fell 1.47% to $728.90 in premarket trading.
5. -- Peloton Treadmill Is Slapped With a Safety Warning
The U.S. Consumer Product Safety Commission urged owners with small kids and pets to stop using the devices immediately after 39 reports of small children and a pet getting harmed by the Tread+ treadmill, also known as Model No. TR-01 or the “Tread," which sells for upward of $4,000.
"In light of multiple reports of children becoming entrapped, pinned, and pulled under the rear roller of the product, CPSC urges consumers with children at home to stop using the product immediately," said the federal commission.
The commission also said it believes the machines pose a risk for kids and pets even while an adult is running on the treadmills, and that it believes the hazard cannot be avoided by locking the device when not in use.
Peloton said in a statement it believes the Consumer Product Safety Commission's warning was "inaccurate and misleading."
"The Tread+ is safe for Members to use in their homes and comes with safety instructions and warnings to ensure its safe use. Like all motorized exercise equipment, the Tread+ can pose hazards if the warnings and safety instructions are not followed," Peloton said.
"The Tread+ is not for children under 16. Peloton warns Members not to let children use the Tread+ and to keep children, pets, and objects away from the Tread+ at all times. Any owner of a treadmill - whether made by Peloton or not - should follow these warnings, as they are included in the applicable safety standards, which the Peloton Tread+ meets,” the company added.
Peloton shares fell 5.34% to $110.01 in premarket trading Monday.