Cathie Wood and ARK, Tesla, Coinbase: 5 Things You Must Know

Here are five things you must know for Tuesday, March 9:

1. — Stock Futures Rise as Yields Retreat

Stock futures rose Tuesday with tech-heavy Nasdaq futures rebounding following a slump that saw a continuing rotation out of high-growth equities.

Contracts linked to the Dow Jones Industrial Average rose 184 points, S&P 500 futures were up 37 points and futures for the Nasdaq jumped 245 points or 2%.

Bonds rallied early Tuesday, pushing yields lower, ahead of an auction of $120 billion of government debt. The auctions kick off Tuesday with a sale of $58 billion of three-year notes, Bloomberg reported.

The 10-year Treasury rate traded at 1.539% on Tuesday, after climbing to 1.6% in the previous session.

Rising bond yields, which have dominated market attention the past few weeks, have been hitting tech shares the hardest since the high-growth stocks can be more vulnerable to inflation pressures.

The Nasdaq dropped 2.41% on Monday and entered correction territory as investors rotated out of high-flying tech names and into stocks that will benefit the most from a reopening of the U.S. economy following Senate passage of President Joe Biden’s $1.9 trillion stimulus package.

The Nasdaq 100, which includes the top U.S. and international non-financial companies based on market capitalization, declined 2.9% and fell to its lowest since November 2020.

The Dow rose almost 1% and set an all-time intraday record. The S&P 500 fell 0.54% on Monday after trading higher for most of the session.

2. — Tuesday’s Calendar: Earnings from Dick’s Sporting Goods and Qualtrics

Earnings reports are expected Tuesday from Dick’s Sporting Goods (DKS) – Get Report, H&R Block (HRB) – Get Report, MongoDB (MDB) – Get Report, Navistar International (NAV) – Get Report, Qualtrics International (XM) – Get Report, Kronos Worldwide (KRO) – Get Report and Thor Industries (THO) – Get Report.

The U.S. economic calendar for Tuesday includes the NFIB Small Business Optimism Index for February at 6 a.m. ET.

3. — Cathie Wood’s ARK Is Buying During the Tech Selloff

Cathie Wood’s ARK Innovation ETF (ARKK) – Get Report fell almost 6% on Monday, and her exchange-traded funds have declined 30% since a Feb. 12 high.

But Wood, the founder of ARK Investment Management, said she wasn’t worried about the recent drop in her funds, particularly ARK Innovation, which has fallen for three straight weeks. In fact, she said she’s capitalizing on the selloff.

“Right now the market is broadening out and we think in an underlying sense the bull market is strengthening and that will play to our benefit over the longer term,” Wood told CNBC.

A broadening market “is good news,” she told Bloomberg in a separate interview. “We keep our eye on the prize. We have a five-year time horizon.”

Cathie Wood’s Palantir Buy: What Jim Cramer Doesn’t Understand

Some of ARK’s largest holdings declined sharply on Monday. For instance, Tesla (TSLA) – Get Report, ARK’s biggest best, dropped 5.8%, and Square (SQ) – Get Report sank 6.7%.

Wood said she’s been buying the dips in some of her ETF’s top holdings amid the market’s rotation out of technology shares. Tesla’s valuation has plummeted almost $280 billion since its high of roughly $850 billion in late January.

Tesla was rising 4.19% to $586.60 in premarket trading Tuesday.

“We are becoming more and more optimistic about our portfolios in this selloff,” she told CNBC.

4. — Coinbase Valued at $90 Billion In Private Auction

Shares of Coinbase Global, the cryptocurrency exchange that will be going public in late March, changed hands at a roughly $90 billion value in a private auction last week, Bloomberg reported, citing people familiar with the matter.

That valuation is based on $350 a share, the price the stock was trading at on the Nasdaq Private Market auction that ended last Thursday, the people told Bloomberg.

The auction was the last time shares are being sold on the Nasdaq Private Market before Coinbase goes public in late March, the people said.

Some of the shares had traded at $375 earlier in the auction, which would value the company at close to $100 billion.

In late February, Coinbase filed for a direct-listing initial public offering. It will list on the Nasdaq under the ticker symbol “COIN.”

5. — Stitch Fix Sinks as Sales Miss Estimates

Stitch Fix (SFIX) – Get Report was falling 23% in premarket trading Tuesday after the subscription-based apparel retailer’s fiscal second-quarter sales missed analysts’ estimates and it reduced guidance for the year.