Major Indexes End Mostly Lower as Investors Digest Iran Developments; Oil Futures Pull Back

Meet ‘Stretch’—Michael Saylor’s New Tool for Using Bitcoin to Pay a Big Dividend. Here’s What to Know

FROM 1 hr 8 min ago

If you can’t get enough volatility, buy bitcoin. If you’ve had enough… buy bitcoin.

That’s one way to read the good word from Michael Saylor, chair of Strategy (MSTR), whose latest financial wares, called preferred issues—hybrid securities that have both stock- and bond-like features—may appeal to both Wall Street and Main Street investors wary of whipsawing stock markets.

They look like bonds because they pay a regular yield, or dividend. They resemble equities because holders rank below creditors in a company’s capital stack. Four of them now trade on the Nasdaq, nicknamed “Stretch,” “Stride,” “Strife,” and “Strike” after their respective tickers. Stretch, which uses the symbol “STRC,” is the most ballyhooed of them all.

Why is that? Perhaps because its current yield is 11.5%—while Strategy’s common stock has been cut in half in the last year as crypto markets took a turn for the worse. (Stretch, Strategy’s Michael Saylor said on social media Tuesday, “is for everyone.”) Fans liken “Stretch” to a stablecoin, but investors should note some meaningful differences.

Read the full article here.

–Crystal Kim

$130-a-Barrel Oil Could Send Economy Into a Recession

FROM 1 hr 22 min ago

If you’re watching the price of oil on its recent roller coaster ride, there’s a key number to keep in mind: $130 a barrel, the level at which oil is expensive enough to push the U.S. economy into a recession.

That’s according to economists at Wells Fargo Securities, who found that if crude oil reached that price level and stayed there, it would push gas prices up high enough to force households to cut back on spending and businesses to start laying people off.1

“An oil price shock becomes recessionary when it turns a slowing expansion into a self-reinforcing downshift: real income falls, consumption growth slows, investment contracts, hiring weakens, and income declines further,” economists led by chief economist Tom Porcelli wrote in a commentary Monday.

The price of oil has whipsawed up and down since Feb. 28, when the U.S. and Israel began bombing Iran, prompting the virtual closure of the Strait of Hormuz, the vital waterway through which 20% of the world’s oil supply flows.

Read the full article here.

–Diccon Hyatt

How to Invest as the Iran War Evolves? Experts Say Don’t Just Run for the Hills—or Buy the Dip

FROM 1 hr 35 min ago

Investors may be having a hard time working out what’s next in the Middle East. Some advisers suggest they shouldn’t try.

Major asset classes are whipsawed as investors tried to determine how long the war in the Middle East will last. The messaging, analysis and market signals seem to conflict from hour to hour, making how to proceed it all the more difficult to determine.

The price of West Texas crude, for example, both surged to above $115 per barrel and dumped to around $85 yesterday. The price of gold did precious little following the outbreak of war, only to start climbing after President Donald Trump teased an end to hostilities. U.S. stocks are seemingly up one day, down another. The Wall Street “fear gauge” known as the VIX is jumping between fear and relative calm.

As markets move fast and break trends, strategists and experts advise investors to go slow and avoid extreme positions.

Read the full article here.

–Crystal Kim

This Pharmaceutical Stock Is Leading the S&P 500 Higher Tuesday, After ‘Remarkable’ Trial Results

FROM 2 hr 13 min ago

Vertex Pharmaceuticals (VRTX) shares are soaring after the company said it achieved “remarkable” results from a new clinical trial.

The stock was up over 8% to about $499 in recent trading, making it the best-performing stock in the S&P 500 Tuesday afternoon.

Vertex said Monday that a Phase 3 trial of its povetacicept accomplished both its primary and secondary goals, and reduced key markers of kidney disease compared to a placebo. The drug treats immunoglobulin A nephropathy (IgAN), a disorder that can lead to kidney damage or failure.

Jefferies analysts on Tuesday initiated coverage of Vertex with a “buy” rating and $580 price target following the results, pointing to a growing market for IgAN drugs.

William Blair analysts, who hold an “outperform” rating for the stock, called the trial results a “clear win for Vertex.” The analysts said they now see the drug potentially being approved by the end of the year, and adding to revenue next year.

Read the full article here.

–Aaron McDade

Anthropic Identifies the Jobs Most Exposed to AI Risks—Is Your Occupation Affected?

FROM 3 hr 24 min ago

The workers most at risk from AI aren’t those earning the lowest wages, but are among the best-paid, best-educated professionals in the U.S., a new study from Anthropic has found.

Unlike past waves of automation, which hit blue-collar workers hardest, AI appears to be targeting so-called “knowledge work,” and the people who do it for a living may be more vulnerable than cashiers and cooks who earn far less than them. Almost three-quarters of a computer programmer’s core job tasks, for instance, are already being handled by AI—not someday, but in how it’s used today.

The study arrives as many Americans worry that AI automation may cost them their jobs, even as most research has been theoretical about which tasks AI might handle, with the most robust studies thus far showing limited effects on employment. Anthropic, the company behind the Claude AI model, is among the few organizations with direct access to real-world AI usage data at scale, making this among the more important studies on AI’s effect on jobs to date.

Read the full article here.

–Peter Gratton

Bill Ackman’s Pershing Square Files for IPO—Here’s What Investors Need to Know

FROM 4 hr 14 min ago

It could soon get easier for more investors to hold stakes in Pershing Square.

Bill Ackman’s hedge fund on Tuesday filed for an initial public offering on the New York Stock Exchange. The IPO will use a dual-listing structure, with shares of Pershing Square set to trade under the ticker “PS,” while a closed-end fund trades under the ticker “PSUS.”

The firm said that for every 100 shares purchased of the closed-end fund, investors would receive 20 shares in Ackman’s management company. Shares of the closed-end fund will be offered at $50 per share.

Pershing did not disclose how many shares will be sold in the offering, but said it expects to raise between $5 billion to $10 billion in proceeds from the combined IPO. The closed-end fund has already secured $2.8 billion in commitments from a group of investors including family offices, pension funds, insurance companies, and other investors, per the filing.

Read the full article here.

–Aaron McDade

Mortgage Rates Hit a 3-Year Low—Then Came the Iran Conflict

FROM 5 hr 18 min ago

Mortgage rates recently gave homebuyers some relief, slipping below 6% for the first time in more than three years. The late-February milestone marked a notable shift after a long stretch of elevated borrowing costs.

But the reprieve didn’t last. After the Iran conflict began, rates on 30-year mortgages have been inching higher almost every day. While the increase is modest so far, it has interrupted what had been a welcome downward trend.

Freddie Mac’s weekly survey showed the average 30-year fixed mortgage rate falling to 5.98% on Feb. 26—the first time it has dipped below 6% since September 2022. While that weekly figure includes loans requiring prepaid points, the comparable average for zero-point loans was 6.16%, based on Investopedia’s daily 30-year rate average from Zillow.

Two days after this welcome dip, the Middle East conflict began. After the Feb. 27 drop to 6.16%, Investopedia’s daily average has climbed to 6.31%, rising almost every day and adding 15 basis points so far.

Read the full article here.

–Sabrina Karl

Step Aside, Protein. Here’s Why ‘Fibermaxxing’ Is America’s Latest Grocery Store Obsession

FROM 6 hr 8 min ago

Protein has been all the rage in grocery stores. Now fiber is hot on its tail.

Americans are “fibermaxxing,” increasing their fiber intake to meet—or even exceed—daily recommended doses. The trend has been fueled by TikTok influencers extolling the health benefits of high-fiber foods like berries, chia seeds, oats, and even Dutch stroopwafels.

The fiber frenzy is changing what people buy. The craze is just one example of growing consumer demand for what food industry executives are calling “better-for-you” snacks: Consumers, they say, are looking for more than just a salty crunch; they’re also seeking products that pair convenience and holistic health benefits.

On social platforms like Reddit, consumers share dietary tips, personal experiences, and concerns about how they’re feeling when they up their fiber intake. “After three days of lentils, chia seeds, and raw cruciferous vegetables, I’m pretty sure I’ve become a living greenhouse,” one recently wrote.

“Unless you have been ignoring all social media for the past year, you will know that consumer awareness of the importance of fiber has been rapidly increasing,” said Daniel Ordonez, chief operating officer of Oatly (OTLY) on the oat milk maker’s latest quarterly earnings call.

Read the full story here.

–Colin Laidley

Here’s How Much Traders Expect Oracle Stock to Move After Earnings

FROM 6 hr 58 min ago

Oracle is set to report its latest quarterly results after the closing bell Tuesday. Traders anticipate the event could lead to a big move in the cloud computing giant’s stock.1

Options pricing suggests traders see Oracle (ORCL) stock moving as much as 10% in either direction by the end of the week. A shift of that size from the stock’s closing level on Monday could lift shares back to around $167, recovering some of their recent losses, or pull them down to $136.

Shares of Oracle have lost nearly 60% from their September highs, amid concerns about its backlog’s dependence on OpenAI, and whether its AI-related investments will live up to their promises.

Read the full article here.

–Kara Greenberg

NIO Stock Pops as Chinese EV Maker Records First Net Profit

FROM 7 hr 44 min ago

Chinese electric vehicle maker NIO registered its first quarterly unadjusted profit Tuesday. Its U.S.-listed shares are surging in response.

NIO (NIO) stock popped 6% before the bell after the Shanghai-based company unexpectedly posted a profitable fiscal 2025 fourth quarter.

NIO swung to a profit of 282.7 million yuan ($41.1 million) from a net loss of 7.11 billion yuan ($1.03 billion) in the fourth quarter of 2024. Analysts polled by Visible Alpha expected a net loss of 345.8 million ($50.3 million).

Revenue of 34.65 billion yuan surged 76% year-over-year and topped estimates as the company delivered 124,807 vehicles, up 72% from Q4 2024.

U.S.-listed NIO shares entered the day down 3% thus far in 2026.

Kohl’s Shares Sink on Weak Q4 Comparable Sales

FROM 8 hr 30 min ago

Kohl’s (KSS) shares are not exactly off to a flying start this year. Tuesday’s fiscal 2025 fourth-quarter results are not helping.

Kohl’s shares pulled back 5% before the bell after the department store chain reported weaker-than-expected comparable sales and revenue.

The Menomonee Falls, Wis.-based company posted a Q4 comparable sales decline of 2.8% year-over-year and revenue that declined more than 4% to $5.17 billion. Analysts surveyed by Visible Alpha had expected comparable sales to slip 2% and revenue of $5.18 billion.

Adjusted earnings of $0.95 per share topped estimates of $0.82, and the midpoint of Kohl’s fiscal 2026 guidance ranges for net sales, comparable sales, and adjusted EPS were slightly better than expectations.

“We are ending 2025 in a stronger position than we started, with important work still ahead of us,” said CEO Michael Bender, who had his “interim” tag removed in November. “Over the past year, our efforts have been focused on resetting our foundation. This focus is intended to stabilize the business and strengthen our operational ability to build for a stronger future. In 2025, we made meaningful progress, despite our Q4 topline coming in softer than our expectations. 

Shares of Kohl’s entered Tuesday down 27% year-to-date.

What to Expect From Wednesday’s Report on Inflation

FROM 9 hr 6 min ago

Inflation may have been relatively tame in February, but that might not matter much to financial markets and the Fed.

Forecasters expect a report Wednesday from the Bureau of Labor Statistics to show the cost of living as measured by the Consumer Price Index rose 2.4% over 12 months in February, the same annual rate as in January, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal. Core prices, which exclude the volatile prices for food and energy, likely rose 2.5%, also the same as in January.

A report in line with expectations might, under normal circumstances, reassure investors and policymakers at the Federal Reserve that inflation isn’t worsening, even if it’s still not cooling to the Fed’s 2% annual target.

However, the data will indicate less than usual about the trajectory of inflation because of the spike in gasoline and diesel prices in early March due to the Iran war.

Read the full article here.

–Diccon Hyatt

Stock Futures Rise After Wild Session

FROM 10 hr 3 min ago

Futures contracts connected to the Dow Jones Industrial Average pointed 0.3% higher.

S&P 500 futures were up 0.2%.

Nasdaq 100 futures were 0.4% higher.