Stock futures are ticking higher on Tuesday morning
Stock futures rose on Tuesday morning as concerns over Covid cases in China kept investor sentiment in check.
Futures tied to the Dow Jones Industrial Average rose 75 points, or 0.22%. S&P 500 futures were 0.24% higher, while Nasdaq 100 futures rose 0.16%. Shares of Best Buy rose 7.3% in premarket trading after the company raised its 2023 financial outlook and beat earnings expectations.
China saw its first mainland deaths from Covid since May at the weekend. That led to fears among investors that the country could bring back restrictions meant to slow the spread of the virus, which would hurt business.
The news from China pushed investors away from growth stocks on Monday and toward defensive sectors such as health care and utilities, said David Waddell, managing director of Waddell & Associates. He said it also led to “reflexive” buying of the US dollar, putting upward pressure on bond yields.
“On low-volume days like today, the market becomes Pavlovian,” he said. “If you want to understand this market, look at the dollar.
Stocks are coming off a decline, with the Dow losing 45 points, while the S&P 500 and Nasdaq Composite fell 0.4% and 1.1%, respectively. Dow losses were pared by a 6.3% gain in Disney after Bob Iger returned as CEO.
On Tuesday, several Federal Reserve officials are scheduled to speak, including Kansas City Fed President Esther George and St. Louis Fed President James Bullard.
Economic reports to be released include the Philadelphia Fed’s non-industrial business outlook survey and the Richmond Fed’s manufacturing index.
Investors are also watching earnings reports from Dollar Tree, Best Buy, HP and Nordstrom. The stock market will be closed on Thursday for the Thanksgiving holiday and will close early on Friday.
