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Wall Street may struggle to follow up a strong session, as futures fell Wednesday with investors watching rising bond yields and waiting for more corporate results, including Tesla, after the market close.
How are stock-index futures trading?
-
Dow Jones Industrial Average futures
YM00,
+0.02%
were flat at 35,319 -
S&P 500 futures
ES00,
+0.01%
were slightly lower at 4,510 -
Nasdaq-100 futures
NQ00,
+0.04%
fell nearly 0.1% to 15,386
On Tuesday, the Dow Jones Industrial Average
DJIA,
rose 199 points, or 0.56%, to 35457, the S&P 500
SPX,
increased 33 points, or 0.74%, to 4520, and the Nasdaq Composite
COMP,
gained 107 points, or 0.71%, to 15129.
What’s driving the market?
A winning streak that has led the S&P 500 and Nasdaq Composite to five straight positive sessions looked set for a breather. The S&P 500 also sits 0.38% off its all-time high reached Sept. 2 at 4536.95.
Investors have been pushing markets higher on positive corporate earnings thus far, while juggling concerns about supply-chain disruptions, and potential hits to profit margins aren’t far off.
Fundstrat Global Advisors lifted its end-year S&P 500 forecast to 4,800 from 4,700. In a note to clients, strategists led by founder Tom Lee said they see a “strong risk-on environment” as under way, helped by a typically strong year-end seasonal pattern that follows October.
A busy earnings schedule is ahead, with electric-car maker Tesla
TSLA,
due to report after Wednesday’s close, while biotech Biogen
BIIB,
medical devices and healthcare group Abbott Laboratories
ABT,
oil-field services group Baker Hughes
BKR,
and telecommunications group Verizon Communications
VZ,
are among the names reporting ahead of the open.
Technology stocks looked set to come under some pressure as the yield on the 10-year U.S. Treasury
TMUBMUSD10Y,
hovered around a five-month high at 1.6409%. Yields climbed on Tuesday after Federal Reserve Gov. Christopher Waller said the central bank should begin tapering its monthly purchases of $120 billion in Treasurys and mortgage-related assets starting next month.
The Fed’s Beige Book of economic conditions due at 2 p.m. Eastern on Wednesday will be one to watch, said Saxo Bank’s chief investment officer Steen Jakobsen. In a note to clients, he said investors should pay special attention to what the report says “about demand relative to the available supply of labor and parts, as well as the status of supply chains and logistics.”
What companies are in focus?
-
Shares of Netflix Inc.
NFLX,
+0.16%
fell 1.9% in premarket trading. The streaming video company reported a bounce in third-quarter revenue and subscriber numbers, but a slightly disappointing fourth-quarter forecast. -
Shares of Novavax Inc.
NVAX,
-3.43%
slid 17% in premarket trading. Citing sources, Politico reported Tuesday that the biotech group is facing big hurdles in proving it can produce a COVID vaccine that’s up to regulatory standards.
