The stock market’s highest flyers remain under pressure this morning. Futures for the tech-heavy Nasdaq 100 dropped 1.5%, after the index slumped 2.6% in trading yesterday on a selloff in some of the hottest pandemic buys such as Peloton Interactive Inc. which sank 10%. Tesla Inc. shares are set to tumble again at the open with futures trading well south of $700. CEO Elon Musk's bet on Bitcoin also took a hit with the cryptocurrency dropping significantly again this morning.
Get ready for Fed Chair Jerome Powell's semiannual monetary policy testimony before Congress, which will take on additional importance this time around as investors size up the recent run-up in bond yields. Powell will answer questions from the Senate Banking Committee today and appear before the House Financial Services Committee tomorrow. He's expected to reaffirm his commitment to an ultra-easy monetary policy, as well as the need for more fiscal stimulus, to support the economy as it emerges from the COVID-19 pandemic.
In earnings news, Home Depot, home improvement retailer beat quarterly estimates with earnings of $2.65 per share. Revenue came in above estimates as well. Comparable store sales jumped 24.5% during the fourth quarter, more than the 19.2% consensus estimate of analysts polled by FactSet. Home Depot is not providing 2021 guidance, however, due to pandemic-related uncertainty.