Here are five things you must know for Wednesday, Nov. 11:
1. -- Stock Futures Rise as Wall Street Turns to Cyclical Names
Stock futures rose Wednesday as investors continued their rotation into more cyclical industries that would benefit from an economic recovery and out of technology shares.
Contracts linked to the Dow Jones Industrial Average rose 202 points, S&P 500 futures were up 27 points and Nasdaq futures gained 111 points.
Stocks finished mixed Tuesday following a Wall Street rally that was fueled by optimism over a possible coronavirus vaccine. The Dow finished up 263 points, or 0.9%, to 29,420, the S&P 500 fell 0.14% and the Nasdaq dropped 1.37% as investors rotated out of expensive tech names such as Amazon.com (AMZN) - Get Report, Microsoft (MSFT) - Get Report and Facebook (FB) - Get Report.
Wall Street kicked the week off strongly after Pfizer (PFE) - Get Report announced a coronavirus vaccine candidate it is developing with German partner BioNTech (BNTX) - Get Report prevented more than 90% of infections in a large-scale study.
But the positive vaccine news from Pfizer also saw investors turning more toward shares of manufacturers and energy companies amid bets for a swifter reopening of the economy.
Stocks in Shanghai declined Wednesday after China issued stiffer regulations on the internet industry.
For more on Asian markets read:
2. -- Alibaba Slides as China Issues Tighter Regulations on Internet Industry
U.S.-listed shares of Alibaba fell 1.78% to $261.79 in premarket trading Wednesday, following a decline of more than 8% in Tuesday's regular trading session. The stock plunged 9.8% in Hong Kong on Wednesday, taking losses to more than $115 billion since Beijing unveiled new antitrust regulations on internet companies, according to Bloomberg.
As for Singles Day, purchases totaled more than $56 billion early Tuesday, well ahead of last year's record pace as consumers flocked to the world's biggest shopping event.
Alibaba, Asia's most valuable tech company, kicked off the annual global shopping extravaganza 10 days early this year with a "Phase 1" part of the event that generated significant sales prior to the official launch at midnight in Beijing.
Sales on Singles Day itself initially were forecast to generate $45 billion or more in total sales, a near 20% increase from last year's record of $38 billion, as shoppers in key Asia-based economies splurge on tech and consumer goods following months of lockdowns linked to the global coronavirus pandemic.
3. -- Amazon's Ring to Recall 350,000 Smart Doorbells
Amazon's Ring will recall hundreds of thousands of its smart doorbells after receiving reports the devices were catching fire.
Around 350,000 second-generation Ring doorbells sold in the U.S. and roughly 8,700 sold in Canada will be recalled, according to a notice issued by the U.S. Consumer Product Safety Commission on Tuesday.
The CPSC said on its website the "video doorbell’s battery can overheat when the incorrect screws are used for installation, posing fire and burn hazards."
Ring has received reports of 85 incidents of incorrect doorbell screws installed with 23 doorbells igniting, resulting in minor property damage. There also were eight reports of minor burns, according to the CPSC.
4. -- Lyft Jumps as Riders Return
Shares of Lyft (LYFT) - Get Report were rising Wednesday after the San Francisco company said the number of active riders using its ride-sharing service jumped in the third quarter, and revenue in the period topped analysts' estimates.
The stock rose 5.96% to $38.20 in premarket trading.
Riders using Lyft's service rose to 12.5 million in the third quarter, down from 22.3 million a year earlier but ahead of the 2020 second-quarter tally of 8.7 million.
Revenue fell to $499.7 million from $955.6 million a year earlier but jumped 47% from the second quarter, reflecting "the ongoing recovery in ride-sharing and the performance improvements we saw across bikes, scooters and fleet," Co-Founder and CEO Logan Green said in a statement.
Green added on a conference call that Lyft remains "confident that demand will continue to return."
5. -- Datadog Slumps on Light Billings
Datadog (DDOG) - Get Report was slumping by 9% in premarket trading after the cloud-monitoring company posted better-than-expected quarterly earnings and sales but billings that were lighter than forecasts.
Adjusted earnings in the third quarter were 5 cents a share, higher than Wall Street forecasts of 1 cent. Revenue of $154.7 million rose from topped estimates $95.9 million a year earlier and topped forecasts of $144.3 million.
“The pandemic has driven organizations globally and across industries to prioritize their digital operations like never before, further strengthening the cloud’s position as the IT architecture of choice,” said Olivier Pomel, co-founder and CEO of Datadog, in a statement. "Datadog continues to be a trusted partner in enabling digital transformation and cloud migration.”
The company posted billings of around $156 million vs. analysts' estimates of $159.1 million.
The stock has risen about 145% so far in 2020.