July 5, 2022

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Stock futures rise after weekly loss

Stock futures rise after weekly loss

US stock futures rose, putting markets on track to recover from a quiet trading week that ended with losses for major US indexes.

S&P 500 futures rose 1% on Monday, while Dow Jones Industrial Average futures rose 0.8%. Contracts for the technology-focused Nasdaq 100 are up 1.6%. Major US indexes fell on Friday after data showed employment growth slowed in May, although employers were still adding 390,000 strong jobs.

Investors are watching economic data closely for clues about the Federal Reserve The path to raising interest rates. Fears that the Federal Reserve will raise interest rates aggressively and possibly push the economy into recession have fueled volatility in global markets this year.

However, trading has been quieter in recent weeks as investors prepare for upcoming central bank decisions and important economic data. The Dow Jones Industrial Average fell 0.9% last week, its smallest weekly change in about a month. The S&P 500 lost 1.2% last week while the Nasdaq closed 1% lower.

“It looks like we’re in some kind of wait-and-see mode,” said Craig Erlam, chief market analyst at Oanda in London. “We’ve entered a phase where a lot of interest rate increases are being priced in. A lot of slower growth is being priced in. We continue to see intraday volatility, but it appears to have leveled off.”

The main test for the markets will be on Friday US Consumer Price Index. The closely watched gauge of inflation is expected to rise 8.2% in May from the previous year, according to economists polled by the Wall Street Journal. Excluding food and energy, price growth is expected to cool slightly to an annual rate of 5.9% in May from 6.2% the previous month.

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Investors have been looking for signs that inflation has peaked, but inflation reports still show few signs that prices are declining.

“There was clear disappointment about how modest the decline in inflation was last month,” Erlam said.

Federal Reserve officials have indicated that they plan to raise interest rates by half a percentage point at next week’s policy meeting, and by the same amount again in July.

Amidst a string of record setbacks in the US, economists are watching for possible wave turn signals. Anna Hertenstein of the Wall Street Journal looks at how rising interest rates on high inflation, market sell-offs, and recession risks are challenging the growth of the American workforce. Photo: Olivier Doolery/AFP

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Spirit Airlines

It jumped 5.6% after initial marketing

JetBlue Airways

display desalination to buy the company. JetBlue in May launched a hostile takeover of Spirit, which it had already agreed to merge with

Frontier Airlines.

Spirit shareholders are due to vote on the Frontier merger proposal on Friday. JetBlue shares are up 1.8% in premarket, while Frontier shares are down 0.9%.

Tesla

Shares gained 3.2% in pre-market trading, partially recovering from Friday’s 9.2% drop after the CEO

Elon Musk

The electric car maker said it would cut 10% of its paid workforce, citing concerns about the global economy.

Amazon.com

Shares rose 1.9 percent to $124.66 on the market. Monday will mark the first trading day since the company implemented a 20-in-1 stock split. Before the split, Amazon shares were $2,447 per share.

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Keurig Dr Pepper

It rose 6.3% ahead of the bell while

VICI . Characteristics

It rose 6.7%, and ON Semiconductor was up 6.7% after S&P Dow Jones Indices said the three companies would join the benchmark S&P 500 index this month.

Brent crude prices reversed earlier gains to fall 0.4% after breaking above $120 a barrel earlier today. Prices of Brent crude, the world’s crude benchmark, are up about 55% this year as Russia’s war in Ukraine turbulent global commodity markets.

In the bond market, the yield on US 10-year Treasuries rose to 2.978%, from 2.940% on Friday, as investors sold government bonds. Yields and bond prices move inversely. Bond yields have been on the rise in recent weeks but remain below their recent high of 3.124% hit in early May.

Traders worked on the floor of the New York Stock Exchange on Friday.


picture:

Brendan McDermid/Reuters

Offshore, the British pound rose 0.4% against the US dollar to $1.2543 as PM

Boris Johnson

Set to face A A vote of confidence in his leadership on Monday. Mr Johnson’s poll ratings have plummeted amid revelations he has been partying in Downing Street during the Covid-19 lockdowns.

The UK’s FTSE 100 index is up 1.3% after being closed since Wednesday for the four-day platinum jubilee holiday, celebrating 70 years of Queen Elizabeth II’s accession to the throne.

The pan-continental Stoxx Europe 600 Index is up 1.1%. Investors in Europe will be watching the European Central Bank’s monetary policy meeting on Thursday, when it is expected to lay out its plans to liquidate bond purchases and raise interest rates. The European Central Bank is expected to raise interest rates for the first time in 11 years in July as it seeks to contain rising inflation.

Asian markets rebounded as China continued to ease Covid-19 restrictions in major cities. China’s Shanghai Composite is up 1.3% while Hong Kong’s Hang Seng is up 2.7%. Japan’s Nikkei 225 index rose 0.6%.

Write to Chelsey Dulaney at [email protected]

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