Here are five things you must know for Tuesday, July 7:
1. -- Stock Futures Point to a Wall Street Pullback
Stock futures pointed lower Tuesday following a strong start to the week as an increase in coronavirus outbreaks dimmed investors' hopes for a swift economic recovery.
Contracts linked to the Dow Jones Industrial Average fell 263 points, futures for the S&P 500 declined 27 points and Nasdaq futures were down 49 points.
Some investors have worried that a rise in infections could set back reopening plans and lead shoppers to cut back on their spending.
“Investors continue to look past the sustained pickup in new infections in the southern part of the U.S. as well as other parts of the world like Israel, but a sustained influx of downbeat reports could change sentiment,” said a report from Prakash Sakpal and Nicholas Mapa, senior economists at ING.
In fact, Atlanta Federal Reserve President Raphael Bostic told the Financial Times he was seeing signs that the U.S. economy was "levelling off."
"There are a couple of things that we are seeing and some of them are troubling and might suggest that the trajectory of this recovery is going to be a bit bumpier than it might otherwise," Bostic said in the interview.
The Nasdaq on Monday set another record high on the back of rising tech shares. The index rose 2.21% to a record close of 10,433, the Dow jumped 1.78% and the S&P 500 gained 1.59%.
The economic calendar for Tuesday includes the Job Openings and Labor Turnover Survey for May at 10 a.m. ET.
2. -- Coronavirus - The Latest
The number of confirmed global cases of the coronavirus has risen to 11,633,678, according to Johns Hopkins University, and deaths increased to 538,394.
The U.S. has 2,938,624 cases of the coronavirus, the most in the world, according to Johns Hopkins. Deaths in the U.S. have risen to 130,306, also the most in the world.
Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said any vaccine developed to combat the coronavirus would only offer "finite" protection and wouldn't work like a lifetime measles vaccine.
“You can assume that we’ll get protection at least to take us through this cycle,” said Fauci, who also sits on the White House's coronavirus task force.
“When you look at natural infection it’s anywhere from six months to a year. However, with this spike protein that’s being presented in the way that we do it, with primes and in some cases boosts, we’re going to assume that there’s a degree of protection, but we have to assume that it’s going to be finite,” said Fauci during a Q&A discussion with Dr. Francis Collins, director of the National Institutes of Health. “It’s not going to be like a measles vaccine.”
The mayor of Atlanta, Keisha Lance Bottoms, tested positive for the coronavirus.
“COVID-19 has literally hit home,” she said in a tweet. “I have had NO symptoms and have tested positive.”
3. -- Sunrun to Buy Solar Peer Vivint for $1.46 Billion in Stock
The enterprise value of the deal is about $3.2 billion
Vivint Solar shareholders will receive 0.55 a share of Sunrun for each share held, which represents a premium of more than 10% to Vivint Solar's closing price Monday of $10.63.
Sunrun shareholders will own about 64% of the combined company after the merger is completed in the fourth quarter.
Sunrun shares rose 12.23% to $23.95 in premarket trading Tuesday, while Vivint Solar shares rose 11.19% to $11.82.
4. -- Palantir Files to Go Public
Palantir Technologies, the data analytics company co-founded in 2004 by investor Peter Thiel, said it confidentially filed for a public listing with the Securities and Exchange Commission.
Palantir has been weighing a direct listing of its shares on an exchange against an initial public offering, people with knowledge of the deliberations told Bloomberg, which previously reported Palantir was seeking to go public by the fall.
Palantir has been valued privately at as much as $20 billion, according to The Wall Street Journal. Under traditional accounting principles, Palantir’s revenue last year was under $750 million, two investors have said.
5. -- Patrick Mahomes Signs Largest Contract in Sports History
NFL quarterback Patrick Mahomes, the Super Bowl MVP, signed the largest contract in sports history after agreeing to a 10-year contract extension worth $503 million.
It's the first time an NFL player has been the highest-paid player in sports.
The deal includes $477 million in guarantee mechanisms. The contract comes with an injury guarantee of $140 million.
“Since he joined the Chiefs just a few years ago, Patrick has developed into one of the most prolific athletes in all of sports," said Chiefs Chairman Clark Hunt in a statement.
"With his dynamic play and infectious personality, he is one of the most recognized and beloved figures to put on the Chiefs uniform. He’s an extraordinary leader and a credit to the Kansas City community, and I’m delighted that he will be a member of the Chiefs for many years to come,” Hunt said.
"Here to stay," Mahomes wrote on Twitter.