April 13, 2024


Unlimited Technology

5 things to know before the stock market opens Tuesday, Dec. 7

Here are the most important news, trends and analysis that investors need to start their trading day:

1. Wall Street set to continue rally as omicron fears recede

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, December 1, 2021.

Brendan McDermid | Reuters

Dow futures jumped roughly 300 points Tuesday, one day after the 30-stock average surged 646 points, or nearly 1.9%, as investors grew less worried about the new Covid omicron variant. The S&P 500 gained more than 1% and the Nasdaq, which has hit the skids of late, joined in the rally and advanced nearly 1%. Wall Street, coming off a losing week last week, has recently been volatile, evidenced by the Dow’s up and downs since its 905-point plunge on Nov. 26.

British drugmaker GlaxoSmithKline said Tuesday that new data from early stage studies showed its antibody-based Covid therapy was effective against all 37 identified mutations of omicron. Last week, other preclinical data showed the treatment, developed by GSK and U.S.-based Vir Biotechnology, worked on key mutations of omicron. Shares of Vir initially rose about 7% in the premarket but gave up most of those gains. GSK gained nearly 0.5%.

2. Longest-serving major airline CEO announces retirement

Doug Parker, CEO of American Airlines

Adam Jeffery | CNBC

Shares of American Airlines gained 3% in the premarket after the carrier announced Tuesday that CEO Doug Parker is stepping down. He’ll be succeeded by American President Robert Isom, effective March 31. Parker, 60, has been the longest-serving chief executive of a major U.S. airline. He’ll continue as chairman of American’s board. Parker is the second major airline CEO this year to announce his retirement. Southwest Airlines CEO Gary Kelly has said he’ll step down in February, handing the top job to another longtime executive, Bob Jordan.

3. Intel to take its Mobileye self-driving car unit public next year

Mobileye’s CEO Amnon Shashua poses with a Mobileye driverless vehicle at the Nasdaq Market site in New York, July 20, 2021.

Jeenah Moon | Reuters

Dow stock Intel rose about 8% in Tuesday’s premarket, the morning after the Silicon Valley chipmaker announced plans to take its Mobileye unit public in mid-2022. Intel bought the Israeli autonomous driving firm for $15.3 billion in 2017, as part of an effort to branch out into new markets. Intel said it will remain majority shareholder of Mobileye, which was founded in Jerusalem by Amnon Shashua and Ziv Aviram in 1999. Over the years, Mobileye has partnered with Tesla, BMW, Volvo and General Motors. Last July, it signed a deal with Ford to support the automaker’s next generation of advanced driving and safety features.

4. Tesla to fix some Autopilot cameras; Musk criticizes Biden bill

Maja Hitij | Getty Images News | Getty Images

Tesla is replacing repeater cameras in the front fenders of at least several hundred of its Model S, X and 3 vehicles made in Fremont, California, although the company has not yet initiated a voluntary recall. That’s according to internal service documents that the electric auto maker distributed in late November. CEO Elon Musk, in an interview with The Wall Street Journal, said “it might be better” if President Joe Biden’s $1.75 trillion social spending plan, which includes incentives to buy EVs, doesn’t become law. The bill has cleared the House but not the Senate. Of course, Tesla has been helped by government subsidies.

5. Instagram announces teen safety updates ahead of hearing

UKRAINE – 2020/11/06: In this photo illustration an Instagram logo is seen displayed on a smartphone. (Photo Illustration by Valera Golovniov/SOPA Images/LightRocket via Getty Images)

SOPA Images | LightRocket | Getty Images

Instagram said Tuesday it’s launching several new features in an effort to improve teen safety in the app, like parental controls and an option to prevent people from tagging or mentioning teens. The changes come a day before Instagram CEO Adam Mosseri is set to testify before Congress for the first time. Mosseri’s upcoming appearance follows bombshell reports that showed that Meta, which owns Facebook and Instagram, was aware of the harms its apps and services cause, including to teen mental health. Facebook has changed its corporate name to Meta Platforms.

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