Stocks opened lowerTuesday following a rotation out of tech stocks that saw the S&P 500 and Nasdaq Composite close lower Monday.
Jim Cramer told Action Alerts PLUS senior analyst Jeff Marks Monday that as interest rates increase, investors are shifting from technology stocks to the banks, oils, industrials and travel and leisure names. “The bifurcation is so stark,” Cramer said.
As of the opening bell Tuesday, the Dow Jones Industrial Average was down 129.40 points, the Nasdaq was down 169.90 points and the S&P 500 was down 27.97 points.
Cramer and Marks discussed Fed chair Powell’s congressional testimony amid the retirement of Fed presidents, inflation, Pfizer (PFE) – Get Pfizer Inc. Report, Aurora (ACB) – Get Aurora Cannabis Inc. Report, Ford (F) – Get Ford Motor Company Report and much more.
Watch the full interview with TheStreet Live at 10:00 a.m. E.T. in the video below:
Fed Watch Continues
Federal Reserve Chair Jerome Powell, alongside Treasury Secretary Janet Yellen, is set to kick off his two-day congressional testimony with an appearance before the Senate Banking Committee Tuesday. In pre-released remarks, Powell said inflation pressures could last longer than expected as supply chain bottlenecks place upward pressure on prices.
“As the economy continues to reopen and spending rebounds, we are seeing upward pressure on prices, particularly due to supply bottlenecks in some sectors. These effects have been larger and longer lasting than anticipated, but they will abate, and as they do, inflation is expected to drop back toward our longer-run 2 percent goal,” Powell said.
The congressional testimony comes a day after the surprise retirement of two Fed presidents following controversy surrounding stock trading among some of the central bank’s top officials.
Robert Kaplan, the Fed president of Dallas, and Eric Rosengren, president of the Boston Fed, announced they would step down Monday.
Kaplan cited financial disclosure distraction as the reason for his early retirement whereas Rosengren cited health reasons.
Pfizer Submits Vaccine Data on Children Ages 5-11
Pfizer and BioNTech (BNTX) – Get BioNTech SE Sponsored ADR Report said they have submitted data to the U.S. Food & Drug Administration from a late-stage trial of its coronavirus vaccine on children between the ages of 5 and 11.
Pfizer said a trial of 2,268 participants showed a “favorable safety profile and elicited robust neutralizing antibody responses using a two-dose regimen of 10 μg doses” of the ‘comirnaty’ vaccine, TheStreet‘s Martin Baccardax reported.
A formal submission to request Emergency Use Authorization (EUA) of the companies’ COVID-19 vaccine in children 5 to 12 years is expected in the coming weeks, Pfizer said in a statement.
Ford Gives Its Electric Initiative a Jolt
Ford and and battery supplier SK Innovation announced plans to invest $11.4 billion to build a new mega campus in Tennessee and Twin Battery Plants in Kentucky…
Read More: Jim Cramer Live Video: Ford, Pfizer, Federal Reserve, Tech Rotation,