Stock futures edge drift sideways amid more earnings, jobs data

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Stock futures drifted near record levels on Wednesday morning, with investors’ optimism about the rebound in corporate earnings helping to offset ongoing coronavirus worries.

Contracts on the S&P 500 ticked the day after the index hit a record high. The Dow was also on track for a lower open while the Nasdaq futures rose.

Ridesharing company Lyft (LYFT) stocks rose after the company unexpectedly achieved adjusted EBITDA profitability for the first time since it went public in 2019, with a surge in rider numbers during the reopening contributing to results. Oil and gas company Occidental Petroleum (OXY) also posted a surprising adjusted profit as energy demand rebounded.

The better-than-estimate results of these and a host of other large US companies have helped fuel stocks even as nervousness about the spread of the Delta variant and concerns about regulatory crackdowns persisted in China. Treasury markets, however, have reflected some of those concerns, with the benchmark’s 10-year return back below 1.2%, its lowest level since mid-July.

“Of course, the delta variant contributed to the fact that interest rates fell. And worries about China were certainly also a headwind. We believe these are mostly driven outside of the US. Domestic growth looks pretty solid, “Stephanie Roth, senior market economist at JPMorgan Private Bank, told Yahoo Finance.” We expect domestic factors to prevail and interest rates to rise in the long run.

On equities, “Tactically, cyclicals should do pretty well so we’re driving cyclical and tech up here and we think rates should certainly move higher for the next 12 months,” added Roth.

More clues as to the US economic growth path will emerge in the coming days, and a number of reports on the job market are expected later this week. ADP’s monthly employment report is expected to show that private payrolls rose a solid 683,000 in July, slowing down only slightly from the 692,000 increase in June. And on Friday, the Labor Department’s “official” job report from July is expected to reflect a slight acceleration in wage growth, with recruitment pickups and the return of more workers to the labor market helping to alleviate some of the rampant labor shortages across industries.

The story goes on

7:17 a.m. ET Wednesday: Mixed stock futures

Here the markets were traded on Wednesday morning:

  • S & P-500 (^ GSPC): -4.25 (-0.1%) to 4,410.75

  • Dow (^ DJI): -53 (-0.15%) to 34,945.00

  • Nasdaq (^ IXIC): +7 (+ 0.05%) to 15,053.25

  • Raw (CL = F): $ -0.75 (-1.06%) to $ 69.81 per barrel

  • Gold (GC = F): + $ 3.00 (+0.17%) to $ 1,817.10 per ounce

  • 10-year treasury (^ TNX): +0.8 bps to generate 1.182%

6:10 p.m. ET Tuesday: Stock futures are advancing

Here the markets were traded on Tuesday evening:

  • S&P 500 futures (ES = F): -3 points (-0.07%) at 4,412.00

  • Dow futures (YM = F): -27 points (-0.08%) to 34,971.00

  • Nasdaq Futures (NQ = F): -3 points (-0.02%) to 15,043.25

Traders work on the floor of the New York Stock Exchange in New York on July 29, 2021. (Photo by TIMOTHY A. CLARY / AFP) (Photo by TIMOTHY A. CLARY / AFP via Getty Images)

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

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