The minute of the Tuesday market
- Global stocks are mingling as Asia stops cutting back on regional trade and Europe seeks direction amid accelerating vaccine deployment and plans to ease travel restrictions in the coming months.
- U.S. markets, meanwhile, are stalling the economic recovery, which the Atlanta Fed’s GDPNow forecast tool said could rise 13.2% this quarter.
- Oil prices soar as demand for fuel accelerates amid reopening of states, with New York, New Jersey and Connecticut unveiling plans for later this month.
- Yields on the 10-year benchmark note rose to 1.62%, but remain well south of the 15-month high of 1.77% recorded in mid-April.
- About 139 S&P 500 companies will report this week, including Moderna, General Motors and PayPal. profits for the March quarter are expected to rise 46.3% from a year ago to $ 396.2 billion.
- CDC data shows 105.5 million Americans have now been fully immunized against the coronavirus, with approximately 246.7 million doses administered as of Monday.
- U.S. equity futures suggest a softer open on Wall Street ahead of Pfizer, CVS Health, T-Mobile and Under Armor earnings and durable goods orders from April at 8:30 a.m. EST.
Wall Street futures fell slightly on Tuesday, as the dollar rallied and tech stocks fell, as investors looked for other signs of a booming US economy that could extend the turnaround. moving towards higher-yielding value stocks amid the waning months of the coronavirus pandemic.
The Atlanta Fed’s GDPNow forecasting tool suggests that the U.S. economy will grow at a rate of 13.2% for the three months ending in June, an astonishing pace supported by billions of dollars in government spending and The Federal Reserve’s historically low interest rate alongside decisions to reopen in many states across the country and a vaccination rate that has totally inoculated nearly 106 million people.
This growth, which is likely to result in massive job gains in the coming months – including a potential value of more than one million non-farm payrolls on Friday – is pushing up commodity prices around the world, extending a rotation towards a so-called reopening. stocks and triggering at least some modest tech sales after last week’s explosive Big Five earnings.
Today’s session likely focused on earnings ahead of CVS Health’s bell (CVS) – Get the report and Pfizer (PFE) – Get the report, along with a reading of durable goods orders from April at 8:30 a.m. EST, US equity futures are trading slightly lower as the opening bell approaches.
Contracts linked to the Dow Jones Industrial Average show a 25 point gain while those linked to the S&P 500, which is up 11.62% for the year and within 20 points of its all-time intraday high, are evaluated at 4 points. withdrawal.
Futures on Nasdaq Composite, meanwhile, show a steeper drop of 45 points amid pre-market declines for Apple (AAPL) – Get the report, You’re here (TSLA) – Get the report and Microsoft (MSFT) – Get the report.
Oil prices have been active in trading overnight, with news of the reopening of states in New York, New Jersey and Connecticut seen as a signal of higher fuel demand in the coming months. , although offset by the continued surge in coronavirus cases in India, around the world. second largest energy market.
Brent futures contacts for July delivery rose $ 1.31 to $ 68.87 per barrel while WTI futures for June jumped $ 1.21 to $ 65.68 per barrel. barrel.
In Europe, rising commodity prices have pushed up mining stocks, while EU plans to allow fully vaccinated tourists to visit the region later this summer have boosted travel stocks, although the Stoxx 600 failed to hold onto earlier gains and slipped 0.07% by mid-morning. trade.
Overnight in Asia, spring market closures in Shanghai and Tokyo brightened regional trade for a third consecutive session, although the benchmark MSCI ex-Japan managed a modest gain of 0.13% to approaching the last hours of trading.