Here are the key news, trends, and analysis investors need to start their trading day:
1. Wall Street looks stable after major tech stocks rebounded on Monday
Traders on the floor of the NYSE January 10, 2022.
US stock futures changed little, from higher levels early Tuesday, the day after a reversal in tech stocks drove the Nasdaq from losing over 2.5% to a modest closing profit. In doing so, the index broke its four-session losing streak. The S&P 500, which extended its losing streak to five sessions in a row, closed slightly, but it too saw an afternoon rally after falling 2%.
The Dow fell nearly 163 points, or nearly 0.5%, and fell for four trading days in a row. However, the 30-share average closed far from Monday’s lows of nearly 600 points. The tough start to the year for stocks had come when 10-year government bond yields skyrocketed that year, briefly topping 1.8% on Monday morning before hitting those levels again. The benchmark return was lower at nearly 1.78% early Tuesday.
2. Senate committee examines Powell’s appointment as Fed chief
Federal Reserve Board Chairman Jerome Powell awaits the start of a hearing before the Senate Committee on Banking, Housing and Urban Development on Capitol Hill November 30, 2021 in Washington, DC.
Alex Wong | Getty Images
Federal Reserve Chairman Jerome Powell goes before a Senate committee Tuesday to confirm his hearing for a second four-year term. Here is Powell’s prepared testimony. In late November, President Joe Biden appointed Powell, who was named Fed Leader by former President Donald Trump in 2018. It was Trump’s Democratic predecessor, former President Barack Obama, who first named Powell governor for 14 years in 2014.
Richard Clarida, Vice Chairman of the Federal Reserve, during the annual symposium in Jackson Hole, Wyoming on August 23, 2019.
Gerard Miller | CNBC
Fed vice chairman Richard Clarida said Monday he would be leaving his post with just a few weeks short of the end of his term after reviewing his stock fund operations during the Covid pandemic. Two regional Fed presidents, Eric Rosengren of Boston and Robert Kaplan of Dallas, resigned after questions arose about their trading activities.
3. GameStop has been on a wild ride for a year since the meme stock craze began
Tuesday January 11th marks the one year anniversary of the start of the GameStop trading frenzy, fueled by individual investors who joined forces on social media in an epic short squeeze that hit Wall Street and Washington. GameStop rose more than 2,600% in less than three weeks to an all-time high of $ 483 on January 28, 2021.
However, the stock closed that day at $ 193.60 on its way to a recent low of $ 40.59 on February 19, 2021. GameStop topped $ 300 per share again in June. But the trend has generally been lower since then. The company got some pops along the way, including on Friday over plans to create a marketplace for NFTs, non-fungible tokens. But the stock closed at $ 131 on Monday.
4. The average daily new Covid cases have increased by 50% in the past week
A health care professional administers a Pfizer BioNTech Covid-19 vaccine to a child at a testing and vaccination facility in San Francisco, California, United States, on Monday, January 10, 2022.
David Paul Morris | Bloomberg | Getty Images
The U.S. averaged about 754,000 new Covid cases per day for the past week, according to data compiled by Johns Hopkins University, up over 50% from the previous week as the Omicron variant continues to rage across the country. That number includes a report of a record nearly 1.5 million new Covid cases on Monday, some of which occurred over the weekend when many states stopped reporting data. The country reports an average of about 1,650 daily deaths, which has also increased, but about half the highs at that time in the last year before vaccines were widely available.
5. There’s a new ranking of America’s best ESG stocks and a new # 1
Paul Tudor Jones, Founder and CIO of Just Capital.
Adam Jeffery | CNBC
Just Capital, the ESG investment research group founded by hedge fund billionaire Paul Tudor Jones, stands out with its new ranking of the top US companies on environmental, social and governance metrics. Alphabet is number 1 in the 2022 Just 100 list, improving by four places over the previous year and ousting rival Microsoft from the top spot. The list reflects the dominant position of technology companies in the marketplace, but there is one notable exception: Meta Platforms, formerly Facebook, lost nearly 700 places in the total universe of 1,000 stocks rated this year, placing far behind technology peers and even companies normally not viewed as an ESG leader including Exxon Mobil.
– Reuters contributed to this report. Follow all market activity like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.