Philip Moustakis, former SEC Division of Enforcement counsel, argues drafting new rules in response to every novel situation makes regulations too specific and difficult to enforce.
U.S. stock futures were under pressure Monday as longer-dated U.S. Treasury yields ticked to their highest level in a year.
The benchmark 10-year yield climbed almost 4 basis points to above 1.38% and was closing in on the key 1.5% area that if reached would cause stock-market dislocations, according to a number of Wall Street strategists.
STOCK-MARKET INVESTORS RIDING WAVE OF LOW RATES MIGHT GET BLINDSIDED
The rise in yields comes as the U.S. House of Representatives neared a vote on President Biden’s $1.9 trillion COVID-19 relief package. The bill’s passage would likely intensify investor worries about inflation coming in the months ahead as the trillions in COVID-19 relief make their way through the U.S. financial system.
Dow Jones Industrial Average futures were trading lower by 202 points, or 0.64%, while S&P 500 futures and Nasdaq Composite futures were weaker by 0.78% and 1.29%, respectively.
Looking at stocks, Boeing Co. has recommended airlines suspend flights of its 777 jets that use Pratt and Whitney PW4000 engines, made by Raytheon Technologies Corp., after a United plane’s engine broke apart in the skies over Denver on Saturday.
In deals, Goodyear Tire & Rubber Co. has agreed to buy rival Cooper Tire & Rubber Co. for $2.8 billion in cash and stock. The deal will pay Cooper Tire shareholders $41.75 per share in cash and .907 newly issued Goodyear shares for each Cooper Tire share they own.
Meanwhile, M&T Bank Corp. will acquire People’s United Financial Inc. for $7.6 billion, a 13% premium to Friday’s closing value, in stock. People’s United shareholders will receive 0.118 M&T Bank shares for each People’s United share they own.
Kohl’s Corp. shares were sharply higher after a group of activist investors with a combined 9.5% stake nominated nine directors to the department store chain’s board.
In earnings, Dish Network Corp. reported quarterly revenue rose 41% year over year despite a decline in the number of pay-TV subscribers.
In commodities, Brent crude oil climbed 54 cents to $63.45 per barrel after Goldman Sachs Group raised its $75 per barrel for the third quarter of this year. Gold, meanwhile, was up $18.30 at $1,795.70 per ounce.
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European markets were trading lower across the board with France’s CAC 40 down 0.48%, Britain’s FTSE 100 weaker by 0.5% and Germany’s DAX 30 sliding 0.57%.
In Asia, Japan’s Nikkei advanced 0.46% while Hong Kong’s Hang Seng and China’s Shanghai Composite declined 1.06% and 1.46%, respectively.
