Import prices and Empire State index among data ahead
U.S. stock futures rose on Wednesday, pointing to a potential rebound after sharp losses on Wall Street as a mild inflation reading gave way to continued concerns over global growth.
Investors will be waiting on fresh data from the U.S., while a batch of updates from China shows that country’s own pandemic struggles.
How are stock futures trading?
- Dow Jones Industrial Average futures YM00, -0.03% rose 65 points, or 0.2%, to 34,529
- S&P 500 futures ES00, 0.08% rose 10 points, or 0.2%, to 4,445
- Nasdaq-100 futures NQ00, 0.16% gained 46 points, or 0.3%, to 15,425
On Tuesday, the Dow industrials DJIA, -0.84% dropped 292.06 points, or 0.8%, to finish at 34,577.57, the S&P 500 index SPX, -0.57% fell 25.68 points, or 0.6%, to 4,443.05 and the Nasdaq Composite COMP, -0.45% fell 67.82 points, or 0.5%, to 15,037.76.
What’s driving the market?
Investors remain worried that fallout from the pandemic will string out for global economies, especially as the delta variant has fueled surging cases in the U.S. and elsewhere. Markets have been trying to regroup after a string of losses that were briefly halted on Monday.
“I suspect the market is likely to bounce around as it tries to stabilize. From a near term prospective the market is somewhat oversold, therefore we could get a bounce. However the cautious attitude will likely prevail since the decline has been accompanied by low volume,” Peter Cardillo, chief market economist at Spartan Capital Securities, said in emailed comments.
More data is ahead for Wednesday, starting with August import prices and the New York state Empire factory index for September, both due at 8:30 a.m. Eastern Time., and industrial production and capacity utilization for August due at 9:15 a.m. Eastern.
The bounce for futures came despite a batch of downbeat data from China, where August retail sales grew a disappointing 2.5% from a year earlier, from 8.5% growth in July. Industrial output in August and fixed-asset investment also fell short of expectations.
Which companies are in focus?
- Shares of Microsoft Corp. MSFT, +0.94% rose 1.3% in premarket trading. The technology giant late Tuesday lifted its quarterly dividend by 11% and the company’s board agreed a new stock buyback plan of up to $60 billion.
- Shares of Las Vegas Sands LVS, -9.75% and Wynn Resorts WYNN, -10.85% fell over 7% each, while MGM Resorts MGM, -3.92% shares fell 3% in premarket. The losses came after casino shares slumped in Macau on indications the local government aims to more closely supervise those companies.
How are other assets trading?
- The yield on the 10-year Treasury note TMUBMUSD10Y, 1.277% was flat at 1.285%. Yields and debt prices move in opposite directions.
- The ICE U.S. Dollar Index DXY, -0.15%, which measures the currency against a basket of six major rivals, fell 0.2% to 92.45.
- Oil futures were higher, with the U.S. benchmark CL00, 1.36% rising $1.19 to $71.30 a barrel. October natural gas NGV21, 2.89% climbed 3.5% to $5.44 per million British thermal units.
- In European equities, the Stoxx Europe 600 index SXXP, -0.34% slipped 0.1%, while London’s FTSE 100 index UKX, 0.04% was flat.