Dow Jones futures fell sharply Monday morning, along with S&P 500 futures and Nasdaq futures, amid growing concerns about the Delta coronavirus variant. The 10-year Treasury yield hit new lows while crude oil futures tumbled following Sunday’s OPEC+ production deal.
Zoom Video Communications (ZM) late Sunday agreed to buy customer contact software maker Five9 (FIVN) for $14.7 billion. Zoom Video will pay 0.5533 share for each Five9 share, equal to $200.28 as of Friday’s close. That’s a 13% premium to FIVN stock’s Friday close of 177.60. ZM stock fell 2% before Monday’s open while FIVN jumped 8%.
Tesla (TSLA) over the weekend launched a subscription option for its “Full Self-Driving” driver assistance program as an alternative to paying a big fee upfront.
The stock market rally showed further weakness late last week, with Apple (AAPL) and other megacaps no longer providing cover. The major indexes are starting to pull back, especially the Nasdaq. But other indicators are sending more-negative signals, from declining market breadth to leading stocks coming under pressure.
Energy stocks ran out of gas, with Callon Petroleum (CPE) flashing multiple major sell signals as it plunged. Roku (ROKU) and Nvidia (NVDA) sold off, undercutting key short-term averages. ASML (ASML) reversed from record highs ahead of earnings this week. Finally, Tesla stock fell back toward long-term support as recovering former leaders continue July retreats.
Tesla stock, Nvidia and ASML are on IBD Leaderboard, while Roku stock is on the Leaderboard watchlist. ASML stock is on IBD Long-Term Leaders. Nvidia stock and ASML are on the IBD 50. CPE stock was Friday’s IBD Stock Of The Day because of its sell signals.
OPEC+ Production Deal
OPEC and key allies such as Russia agreed on an OPEC+ production deal to increase output by up to 400,000 a month starting in August. The aim is to phase out all pandemic-era production cuts by September 2022.
The United Arab Emirates will get a higher production baseline, starting in May. So will Iraq, Kuwait, Saudi Arabia and Russia.
Earlier this month, the UAE …….