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NIO, Zoom Video, Bitcoin, Target and Kohl's - 5 Things You Must Know Tuesday

Stock futures fall, a day after the S&P 500 records its best trading day since June; Target and Kohl's report earnings; NIO reports a wider-than-expected quarterly loss; bitcoin trades just below $49,000.

Here are five things you must know for Tuesday, March 2:

1. -- Stock Futures Fall After S&P 500 Posts Best Day Since June

Stock futures declined Tuesday after the S&P 500 recorded its best trading day since June as a selloff in Treasury bonds eased.

Sentiment also was dented by comments from China’s top banking regulator that he was “very worried” about risks of bubbles bursting in global financial markets. Asian stocks closed mostly lower Tuesday.

In the U.S., contracts linked to the Dow Jones Industrial Average fell 26 points, S&P 500 futures fell 4 points and Nasdaq futures were down 14 points.

Stocks closed Monday with significant gains and the S&P 500 rose 2.38% as bond markets stabilized and the U.S. approved Johnson & Johnson’s  (JNJ)  one-shot COVID-19 vaccine.

Benchmark Treasury yields traded at 1.443% Tuesday after last week's surge that was spurred by concerns that inflation would rise along with the economy's recover from the coronavirus pandemic.

Global oil prices, meanwhile, fell for a third straight day. West Texas Intermediate crude, the U.S. benchmark, declined 1.06% to $60 a barrel.

2. -- Tuesday's Calendar: Target and Kohl's Earnings

Target  (TGT)  reported fourth-quarter earnings and same-store sales that were better than Wall Street's expectations as digital traffic surged over the holiday period.

Kohl's  (KSS)  smashed earnings estimates, posting an adjusted profit in the fourth quarter of $2.22 a share, well higher than forecasts of $1.01.

Earnings reports are also expected Tuesday from Hewlett-Packard Enterprise  (HPE) , Nordstrom  (JWN) , Box Inc.  (BOX) , Abercrombie & Fitch  (ANF) , fuboTV  (FUBO)  and Urban Outfitters  (URBN) .

How to Trade Target Once It Reports Earnings

The U.S. economic calendar for Tuesday includes Motor Vehicle Sales for February. Unit vehicle sales are estimated at a 16.4 million annual pace in February, a tick below January's higher-than-expected 16.6 million rate.

3. -- NIO Slumps After Reporting Wider-Than-Expected Loss

NIO  (NIO) , the Chinese maker of electric vehicles, reported a wider-than-expected loss in the fourth quarter and said the chip shortage impacting the global automotive industry would force limits to production.

American depositary receipts of NIO fell 4.98% to $47.28.

The loss in the quarter was 1.39 billion yuan ($212.8 million), narrower than a year earlier but wider than analysts' calls for a loss of 576 million yuan. Revenue of 6.64 billion yuan more than doubled from a year earlier and was in line with estimates.

“NIO concluded a transformational 2020 with a new quarterly delivery record of 17,353 vehicles in the fourth quarter,” CEO William Li said in a statement. “The strong momentum has continued in 2021 as we achieved a historic monthly delivery of 7,225 vehicles in January.”

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The company said it expects to deliver 20,000 to 20,500 vehicles in the first quarter of 2021.

However, while monthly capacity has risen to 10,000 units, production will remain at 7,500 units “due to supply-chain limits, including the chip shortage,” Li said on a call with reporters in China, Bloomberg reported.

4. -- Zoom Video's Earnings and Outlook Smash Estimates

Fourth-quarter earnings from Zoom Video Communications  (ZM)  smashed analysts' estimates and the revenue forecast for the fiscal first quarter also came in higher than Wall Street's expectations.

The stock jumped 8.05% to $442.62 in premarket trading Tuesday.

The videoconferencing company, a beneficiary of COVID-19 lockdowns that have kept workers and students at home, posted fourth-quarter adjusted earnings of $1.22 a share on revenue of $882.5 million, a jump of 369% from a year earlier.

Analysts had expected adjusted earnings of 79 cents a share on revenue of $812 million.

“The fourth quarter marked a strong finish to an unprecedented year for Zoom. In FY2021, we significantly scaled our business to provide critical communications and collaboration services to our customers and the global community in response to the pandemic," said CEO Eric Yuan.

For its fiscal first quarter, Zoom Video said it expects earnings of between 95 cents and 97 cents a share on revenue of $900 million to $905 million. Analysts expect earnings of 72 cents a share on revenue of $837.3 million. 

Zoom Video's fiscal 2022 estimates also were higher than Wall Street estimates.

"As we enter FY2022, we believe we are well positioned for strong growth with our innovative video communications platform, on which our customers can build, run, and grow their businesses," Yuan said.

5. -- Bitcoin Trades Just Below $49,000

Bitcoin turned lower Tuesday to just below $49,000, following last week's sharp declines, but the world's largest digital currency was stable as it gains more attention from large financial institutions.

Goldman Sachs Group  (GS)  reportedly has restarted its cryptocurrency trading desk and will begin dealing bitcoin futures and non-deliverable forwards for clients from next month. 

Citigroup  (C) , in a report, said bitcoin could become “the currency of choice for international trade” in the years ahead. 

However, there are those warning that investors should be cautious when investing in assets such as bitcoin.

New York State Attorney General Letitia James issued two investor alerts Monday in response to the “extreme risk” she said New Yorkers face when they invest in cryptocurrencies.

The first alert urged “extreme caution when investing in virtual currencies."

The second warned brokers, dealers, salespersons, and investment advisers that they could face civil and criminal liability if they don’t fulfill their obligations regarding registration with the state of New York when they do business with virtual currencies.