U.S. stock futures are pointing to a negative start for Wall Street on Monday after the Nasdaq and S&P 500 snapped a two-week winning streak last week.
The yield on 10-year Treasury has climbed 29 points so far this month, which has been bad news for technology stocks and good news for bank stocks. Early this morning, the yield jumped to 1.369% from 1.344% Friday.
By 5:20 a.m. ET, futures tied to the blue-chip Dow were down 186 points, or 0.59% to 31,247. The S&P 500 futures dropped 28.38 points, or 0.73% to 3,874.62 while the tech-heavy Nasdaq 100 gave away 151.25 points, or 1.11% to 13,424.75.
Dozens of Boeing (NYSE: BA)’s 777 jetliners have been grounded in the U.S. and Japan after the U.S. Federal Aviation Administration announced an inquiry into the United Airlines (NASDAQ: UAL) flight that suffered a dramatic engine failure on Saturday, showering debris over a Denver suburb.
United and two major airlines in Japan suspended usage of all of their 62 Boeing 777s while Korean Air announced it would ground six of their planes.
In a statement Sunday evening, the FAA said the investigation applies to 777s powered by PW4077 engines developed by Pratt & Whitney, a subsidiary of Raytheon Technologies (NYSE: RTX).
Boeing also issued a statement saying it recommends airlines ground the aircrafts, with the move creating new challenges for the company just a few weeks after its 737 Max jets were once again allowed to fly following two accidents in which 346 people died.
On the IPO front, the Wall Street Journal reports that Toast Inc has hired JPMorgan (NYSE: JPM) and Goldman Sachs (NYSE: GS) as underwriters for a potential listing this year that could value the company at roughly $20 billion.
People familiar with the matter told the Journal that the restaurant-software provider may also consider a combination with a SPAC or a sale of the company. According to the report, there is no guarantee the 10-year-old company will ultimately IPO or pursue another of the options.
Toast creates software restaurants use for management of online delivery, inventory control, menu management, marketing, accounting and payments processing, among other tasks.
Lucid Motors is close to a deal which will value the company at $15 billion, according to Bloomberg. The electric vehicle maker is in talks to go public via a merger with blank-check company Churchill Capital Corp IV (NYSE: CCIV).
Churchill, which was founded by Michael Klein, is said to be raising a further $1 billion to $1.5 billion to fund the merger. Sources familiar with the matter told Bloomberg that a deal could be announced on Tuesday.
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