SPACs, Nasdaq, Rite Aid, AstraZeneca: 5 Things You Must Know

On Mar 25, 2021

Here are five things you must know for Thursday, March 25:

1. — Stock Futures Edge Higher, Oil Pulls Back

Stock futures rose modestly Thursday and tech shares clawed back some losses following the Nasdaq’s 2% drop during the previous session.

Contracts linked to the Dow Jones Industrial Average were up 61 points, S&P 500 futures rose 6 points and futures on the tech-heavy Nasdaq gained 38 points, or 0.3%.

Stocks ended broadly lower on Wall Street Wednesday, led by declines in tech stocks such as Apple (AAPL) – Get Report and Facebook (FB) – Get Report. The tech-heavy Nasdaq’s decline was spurred by a rotation into cyclical stocks and away from high-growth equities, particularly rate-sensitive technology shares.

Speaking of rates, the 10-year U.S. Treasury yield crept higher to 1.623% early Thursday. The benchmark yield hit 1.754% last week, a 14-month high.

Traders will be monitoring closely a U.S. auction of seven-year notes. An auction of that maturity stumbled in February, triggering a spike in yields.

Oil prices in the U.S. declined Thursday following a rally sparked by a container ship blocking the Suez Canal and creating a bottleneck that could slow the delivery of more than 13 million barrels of crude through one of the world’s busiest waterways. Efforts were underway to free the massive container vessel that has caused a backlog of ships for a third day.

2. — Thursday’s Calendar: GDP and Jobless Claims

The U.S. economic calendar on Thursday includes the third estimate of fourth-quarter Gross Domestic Product at 8:30 a.m. ET and Jobless Claims at 8:30 a.m.

Earnings reports are expected Thursday from Darden Restaurants (DRI) – Get Report, Blink Charging (BLNK) – Get Report, FAT Brands (FAT) – Get Report, Progress Software (PRGS) – Get Report and Momo (MOMO) – Get Report.

3. — SEC Reportedly Opens Inquiry Into SPACs

The Securities and Exchange Commission has opened an inquiry into the blank check acquisition frenzy on Wall Street and is seeking information on how underwriters are managing the risks involved, Reuters reported.

The SEC in recent days sent letters to Wall Street banks seeking information on their dealings in special purpose acquisition companies, or SPACs, Reuters reported, citing four people with direct knowledge of the matter.

Jim Cramer: The Great American ‘SPAC-Out’

The SEC letters asked the banks for voluntary information and the inquiry hasn’t risen to the level of a formal investigation, two of the sources told Reuters.