Here are five things you must know for Tuesday, Jan. 7:
1. -- Stock Futures Rise as U.S.-Iran Tensions Ease
U.S. stock futures were higher Tuesday and crude oil prices retreated as investor concerns about further escalation of tensions between the U.S. and Iran eased and focus shifted to improving growth prospects in the world's biggest economies.
Global crude prices pulled back overnight as the rhetoric between the U.S. and Iran let up somewhat despite simmering resentment for the Jan. 3 killing of Iranian General Qassem Soleimani. Investors used the lull in Gulf tensions to cautiously return to stocks.
Contracts linked to the Dow Jones Industrial Average rose 38 points, futures for the S&P 500 were up 4.65 points and Nasdaq futures gained 31.75 points.
Brent crude futures contracts for February delivery, the global benchmark, were falling 0.68% on Tuesday to $68.44 a barrel, while West Texas Intermediate crude contracts for the same month declined 0.6% to $62.89.
Stocks ended with gains Monday after starting the session firmly in the red, and oil prices finished higher. The Dow Jones Industrial Average rose 68 points, or 0.24%, to 28,703, the S&P 500 gained 0.35% and the Nasdaq was up 0.56%. At its lows Monday, the Dow had fallen 216 points.
The economic calendar in the U.S. Tuesday includes International Trade for November at 8:30 a.m. ET, Factory Orders for November at 10 a.m. and the ISM Non-Manufacturing Index for December at 10 a.m.
2. -- Tesla Launches Model Y Production in Shanghai
Tesla (TSLA) - Get Report founder and CEO Elon Musk officially launched the electric vehicle company's Model Y production at its Shanghai "gigafactory" Tuesday with a prediction that the SUV will be more popular than its other vehicles in the world's largest car market.
Musk cut the ribbon on Tesla's $2 billion plant - its first foreign production facility - in a ceremony attended by Shanghai city officials and scores of company employees while noting that the Model Y, which carries a base price of 444,000 Chinese yuan ($63,000), will likely outsell Tesla's other sedans, including the Model 3.
China's car market, however, is suffering one of its sharpest pullbacks in more than three decades as broader economic growth slows amid the country's ongoing trade dispute with the United States.
Tesla was rising 1.6% in premarket trading Tuesday to $458.79, an all-time high that would extend the stock's six-month gain to around 98%.
Musk's suggestion that the Model Y could outpace Model 3 sales could prove crucial for Tesla's mid-term stock performance, which is pricing in annual unit volumes of more than 1 million by 2025, according to analysts at Credit Suisse.
3. -- American Airlines and Boeing Reach Pact on Losses From 737 MAX Grounding
American didn't disclose how much it would be receiving under the deal but said it would be compensated over several years. The company, however, did say it would give $30 million of the settlement to employees as profit-sharing.
The carrier had 24 MAX jets in its fleet at the time of the grounding and was supposed to have 40 by the end of last year, according to The Wall Street Journal. American has said the grounding would decrease its 2019 earnings by $540 million.
Meanwhile, Spirit AeroSystems (SPR) - Get Report, a supplier for Boeing's 737 MAX, said it would offer voluntary layoffs to workers in Kansas and Oklahoma amid the uncertainty regarding production plans for the aircraft.
4. -- AMD Unveils a More Powerful Notebook Processor Line
Advanced Micro Devices (AMD) - Get Report used its event at the Consumer Electronics Show in Las Vegas to unveil an anticipated notebook processor refresh, as well as a 64-core desktop chip whose performance and price tag both raised eyebrows, according to TheStreet's Eric Jhonsa.
AMD's third-gen Ryzen Mobile notebook processor line, unveiled by CEO Lisa Su at a CES press event Monday, consists of seven chips packing CPUs that sport between four and eight cores and support between four and 16 simultaneous threads. The chips also contain GPUs packing between five and eight cores.
AMD claimed the new Ryzen 4000 line won't merely deliver major performance gains relative to comparable, second-gen Ryzen Mobile processors that launched a year ago, but also roughly twice the power efficiency at load.
Five of the seven Ryzen 4000 chips feature 15-watt thermal envelopes. As such, they're aimed at ultrabooks, notebook/tablet convertibles and other mainstream form factors, and will square off against Intel's (INTC) - Get Report popular U-series notebook processors.
5. -- Impossible Foods Adds Pork and Sausage to Its Menu
Like the company's Impossible Burger, which went on sale in 2016, the pork and sausage are made from soy but mimic the taste and texture of ground meat.
Impossible Pork will be rolled out to restaurants first, while Impossible Sausage will soon be unveiled at Burger King. Later this month, 139 Burger King restaurants in five U.S. cities will offer the Impossible Croissan’wich, made with plant-based sausage coupled with the traditional egg and cheese, according to the Associated Press.