Tuesday June 8th

8-06-2021

S&P 500 futures inch higher as benchmark makes another attempt at a record

U.S. stock index futures rose slightly on Tuesday as the benchmark makes another attempt at a record. Futures on the S&P 500 edged 0.2% higher and Dow Jones Industrial Average futures gained 10 points. Nasdaq-100 futures were higher by 0.6%. Tesla, which is down 10% in the last month, rebounded by 3% in premarket trading to pace Nasdaq stocks. The electric car maker delivered 33,463 China-made vehicles in that market in May, a 29% jump from April. Delta Air Lines gained 1.5% after an upgrade from Jefferies on optimism about international and business travel. Boeing shares climbed more than 1% after Southwest Airlines said it is upsizing its order for the smallest 737 Max model by nearly three-dozen planes amid an improvement in travel demand. Multiple global websites were experiencing an outage early Tuesday, but the size of the issue and how widespread it is was unclear. Futures, especially those for the tech-heavy Nasdaq, appeared to take a leg down when news of the outage spread, but then quickly recovered most of those losses. It was unclear at this point if the move was related. On Monday, the S&P 500 dipped 0.08%. However, the benchmark is just 0.27% away from its intraday record hit earlier in May. Since hitting a record on May 7, the S&P 500 has struggled amid inflation concerns, trading mostly sideways. The Dow fell 126 points, or 0.36%, in the regular session Monday for its worst daily performance since May 19. The Nasdaq Composite edged 0.5% higher on Monday, boosted by shares of Biogen. The biopharmaceutical stock surged 38% after the FDA approved its groundbreaking Alzheimer’s drug. Meme stocks continued their rally Monday. Shares of AMC Entertainment jumped 14.8%, and BlackBerry and GameStop shares also popped double-digits. The U.S. Securities and Exchange Commission said Monday it’s watching ongoing volatility in the market and vowed to protect retail investors. AMC was up slightly in premarket trading Tuesday. Investors are awaiting new inflation signals later this week following Friday’s jobs report. While the U.S. added fewer jobs than expected in May, the unemployment rate dropped to 5.8% from 6.1% and markets reacted positively to the readout. “The reflation trade is taking a bit of a backseat even as Friday’s ‘Goldilocks’ payrolls report served to quell some concerns that the economy might be doing a bit too well,” Goldman Sachs’ Chris Hussey said in a note Monday. “Today’s market action shows that these concerns might be here to stay.” May’s consumer price index is set to be released Thursday. Economists are expecting the CPI to rise 4.7% from a year earlier, according to Dow Jones. In April, the CPI increased 4.2% on an annual basis, the fastest rise since 2008. All eyes are on the next Federal Open Market Committee meeting scheduled for June 15-16 as investors look for what Fed officials will say about inflation and monetary policy. Recent comments by officials suggest the Fed is beginning to prepare markets for tapering its asset purchases. Shares in Asia-Pacific were mostly lower on Tuesday, as investors reacted to the release of Japan’s revised first-quarter gross domestic product figures. The Nikkei 225 in Japan shed 0.19% to close at 28,963.56 while the Topix index rose about 0.1% on the day to 1,962.65. Mainland Chinese stocks closed lower, with the Shanghai composite declining 0.54% to 3,580.11 while the Shenzhen component fell 0.98% to 14,716.98. Over in Hong Kong, the Hang Seng index dipped around 0.1%, as of its final hour of trading. Elsewhere, South Korea’s Kospi fell 0.13% to end the trading day at 3,247.83. Oil prices lost more ground on Tuesday as concerns about the fragile state of the global recovery in demand for crude and fuels were heightened by data showing China’s oil imports fell in May. Brent crude was down 74 cents, or 1%, at $70.78 a barrel, after declining 0.6% overnight. U.S. oil was off by 69 cents, or 1%, at $68.54 a barrel, having dropped by 0.6% in the previous session. Gold fell on Tuesday as a stronger dollar dimmed appetite for bullion, while investors awaited U.S. inflation data for clues on when the Federal Reserve will begin tapering its monetary stimulus. Spot gold fell 0.3% to $1,893.51 per ounce, while U.S. gold futures eased 0.1% to $1,896.30. The dollar index strengthened 0.2%, making gold more expensive for other currency holders.