Stock futures point to a lower opening

Equity futures pointed to a lower opening to return some gains from Tuesday’s session, as the major equity indices recovered some losses after three consecutive sessions with declines.

Contracts for the S&P 500 fell. Futures on Nasdaq also fell, after the technology-heavy index did better than jumping 2.4% during Tuesday’s session.

With relatively low trading volumes during the shortened holiday week, investors continue to consider a number of developments on the Omicron variant and its potential impact on economic activity. These updates have coincided with expectations of tighter monetary policy next year from the Federal Reserve.

Omicron has bypassed other coronavirus variants to become the dominant strain in the United States, and now accounts for about three-quarters of new infections. Against this backdrop, President Joe Biden on Tuesday announced a number of new measures to address the virus, including the opening of several federal COVID-1[ads1]9 test and vaccination sites and the sending of 500 million home rapid tests to Americans for free from next month.

“I think this is a perfect time to remind everyone that the market is a leading indicator. So the market is going to go down, the market is going to fall before the bad news peaks,” Liz Young, Investment Strategy Manager at SoFi, told Yahoo Finance Live Tuesday. “We probably have not heard all the bad news yet. We have certainly not reached a peak in the Omicron cases.”

“But what we see in the action [Tuesday] is that we have had three days of sales. And some of it I think was exaggerated, especially in many of these areas that are positioned to do well in a reopening environment, “she added.” You have to have some money in the market in areas that should do well in just that. . road. Airlines are one of these, cyclical are several of them. When we look at the pattern in the market today, I think this makes sense for what lies ahead of us in the next 6 to 12 months. “

Other strategists agreed that investors should prepare for more choppy towards the end of the year.

“I think you will naturally get some of this boost after we’ve had a couple of choppy sessions. But the market is also trying to price and digest the new information we get here,” Anna Han, Wells Fargo securities equity strategist, told Yahoo Finance Live Tuesday. “We had some news that Build Back Better was delayed, we have more information about Omicron. These are the things you see combined with low liquidity when we enter the end of the year, so we’re not surprised to see volatility.”

During a question-and-answer session during his remarks Tuesday, Biden said he and Senator Joe Manchin (D., W. Va.) “Are going to get something done” on the White House’s $ 1.8 trillion Build Back Better social policy bill. Manchin had earlier this week told Fox News that he could not support the legislation, partly given persistent inflation concerns, and indicated that the bill would be rejected in the absence of support from the moderate Democratic legislature.

08:30 ET: Domestic GDP increased by an upward 2.3% annual rate in the third quarter, according to the latest estimate

US gross domestic product increased by 2.3% annual rate during the July to September quarter, according to the third and final estimate from the Bureau of Economic Analysis.

This was adjusted upwards from a 2.1% increase previously reported. Nevertheless, it marked a slowdown from the jump of 6.7% in the second quarter, and 6.3% growth in GDP in the first three months of the year.

The upward adjustment to overall GDP came as personal consumption, the largest contributor to domestic economic activity, rising 2.0%. This was greater than the increase of 1.7% previously reported in the second estimate.

Core expenditure on personal consumption – the Fed’s preferred measure of inflation – rose 4.6% on a quarter-on-quarter basis. This was also above the quarterly increase of 5.9% previously reported.—

07:20 ET Wednesday: Stock futures rise higher

Here is where the markets traded before opening Wednesday morning:

  • S&P 500 futures (ES = F): +4.00 points (+ 0.09%), to 4644.75

  • Dow futures (ÅM = F): +56.00 points (+ 0.16%), to 35,437.00

  • Nasdaq futures (NQ = F): +3 points (+ 0.02%) to 15,983.00

  • Rough (CL = F): + $ 0.32 (+ 0.45%) to $ 71.44 per barrel

  • Gold (GC = F): + $ 1.30 (+ 0.07%) to $ 1790.00 per ounce

  • 10-year Treasury (^ TNX): -0.8 bps to give 1.4790%

18:10 ET Tuesday: Stock futures open little changed

Here’s where the markets traded when the overnight session started Tuesday night:

  • S&P 500 futures (ES = F): +1 points (+ 0.02%), to 4,641.75

  • Dow futures (ÅM = F): +19.00 points (+ 0.05%), to 35 400.00

  • Nasdaq futures (NQ = F): -1.75 points (-0.01%) to 15,978.25

Stock futures point to a lower opening

Photo by: NDZ / STAR MAX / IPx 2021 16.12.21 Atmosphere on the New York Stock Exchange (NYSE) December 16, 2021 in New York.

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

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