Here are five things you must know for Tuesday, Feb. 9:
1. -- Stock Futures Slip After S&P 500's Sixth Day of Gains
Stock futures pointed lower Tuesday following the S&P 500's sixth straight day of gains amid signs that President Joe Biden and congressional Democrats were pushing forward with a $1.9 trillion coronavirus stimulus package.
Contracts linked to the Dow Jones Industrial Average fell 45 points, S&P 500 futures slipped 3 points and Nasdaq futures were down 7 points.
White House Press Secretary Jen Psaki told reporters Monday that Biden's stimulus plan probably will advance under a fast-tracked procedure Democrats could use to clear the aid package with just a simple majority vote in the Senate.
“I don’t think the American people are particularly worried about how the direct relief” gets to them, Psaki said. “The most likely path at this point is through a reconciliation process.”
Stocks closed at record highs Monday after Treasury Secretary Janet Yellen endorsed Biden's massive stimulus package, saying that if the plan was passed the U.S. could get back to full employment in 2022.
The Dow gained 237 points, or 0.76%, to close at 31,385, the S&P 500 finished up 0.74% to close at 3,915 and the Nasdaq rose 0.95% to end at 13,987.
2. -- Bitcoin Sets Record Above $48,000
Bitcoin set a record above $48,000 on Tuesday, a day after Tesla (TSLA) said in a regulatory filing that it had purchased $1.5 billion of the digital asset.
Bitcoin traded as high as $48,226, according to CoinDesk, before paring gains. At last check Tuesday, the world's largest cryptocurrency was at $46,063, up 17.1%.
Tesla also said it expects to begin accepting bitcoin as a form of payment for its electric cars in the "near future," giving the cryptocurrency an enormous endorsement.
TheStreet's Jim Cramer said Tesla once again was ahead of the game and "absolutely" made the right decision in buying bitcoin.
"I've always felt companies should do more with their cash than keeping it in short-term," Cramer said.
3. -- Tuesday's Calendar: Twitter, Cisco, Lyft and Canopy Growth Earnings
Canopy Growth (CGC) posted a wider-than-expected loss in its fiscal third quarter but revenue minus excise taxes of C$152.5 topped analysts' estimates.
DuPont (DD) posted fourth-quarter adjusted earnings of 95 cents a share, 10 cents higher than analysts' estimates. The company said it expects adjusted earnings in 2021 of $3.30 to $3.45 a share.
The U.S. economic calendar for Tuesday includes the NFIB Small Business Optimism Index for January at 6 a.m. ET and the Job Openings and Labor Turnover Survey for December at 10 a.m.
4. -- Glu Mobile Surges After Purchase by Electronic Arts
Glu Mobile is best known for its games such as "Kim Kardashian: Hollywood and "Diner Dash: Adventures." EA makes the "Madden NFL" franchise games.
The deal is expected to close in the second quarter. Electronic Arts said the transaction immediately will contribute to its net bookings.
"Our acquisition of Glu combines amazing teams and deeply engaging products to create a mobile games leader with proven expertise across many fast-growing genres," said Andrew Wilson, CEO of Electronic Arts, in a statement.
EA will buy Glu Mobile for $12.50 in cash, a 36% premium to the closing price of Glu Mobile shares on Friday.
Glu Mobile rose 34.08% to $12.59 in premarket trading Tuesday. EA shares rose 0.55% early Tuesday.
5. -- Reddit's Value Doubles to $6 Billion
Reddit doubled its valuation to $6 billion in a new round of funding after the social media website gained attention for a retail trading frenzy that can be traced to the forum.
Reddit raised $250 million in a late-stage funding round led by venture-capital firm Vy Capital, The Wall Street Journal reported. It previously was valued at $3 billion after its last funding round in February 2019, according to PitchBook, a provider of private-market data.
"We decided that now was the right opportunity to make strategic investments in Reddit including video, advertising, consumer products, and expanding into international markets," Reddit said in a statement on its website.
“It’s a good market to fundraise,” Reddit CEO Steve Huffman said in an interview with the Journal. “Valuations are very high right now. It never hurts to raise money when there’s an opportunity to do so and Reddit had a strong year.”
Advertising revenue for Reddit, Huffman told the Journal, rose 90% in the December quarter from a year earlier.