Stock futures were mostly higher Tuesday as investors looked toward the next batch of economic data and readied for the end of the second quarter and first half. The S&P 500 and Nasdaq-100 futures gained about 0.2% and 0.5%, respectively. Futures tied to the Dow Jones Industrial Average were little changed. Those moves follow a losing day on Wall Street. The Nasdaq Composite led the way down, dropping nearly 1.2% as investors took profits on some technology stocks. Tesla slid 6%, while Nvidia, Alphabet and Meta Platforms all finished more than 3% lower. The S&P 500 closed down by about 0.5%, while the Dow ended slightly below flat. It was the sixth consecutive negative session for the 30-stock Dow, its longest losing streak since September 2022. Despite Monday’s leg down, the S&P 500 and Nasdaq are still on pace to finish June more than 3% higher, while the Dow is poised for a monthly advance of nearly 2.5%. Friday’s close marks the end of the second quarter and first half of 2023. The Nasdaq has gained more than 9% in the quarter, and is on pace for its best first half in 40 years. The S&P 500 and Dow are on track to finish the quarter up more than 5% and 1%, respectively. “It’s not unusual to see those trends that have persisted all the way through the quarter start to kind of reverse themselves a little bit at the very end,” said Scott Ladner, CIO at Horizon Investments. “The fact that small caps are doing well today and the Nasdaq is doing poorly today is probably as much a reflection on just that portfolio rebalancing effect at the end of the quarter than anything else.” Indeed, the Russell 2000 ended Monday with a marginal gain of 0.09%. On the earnings front, Walgreens reported weaker-than-expected earnings and slashed its full-year profit guidance. Shares dropped more than 8% in the premarket. Asia-Pacific markets are mixed on Tuesday, after Wall Street’s tech sell-off which saw Tesla tumbling 6% after Goldman Sachs downgraded the electric car maker, citing pricing headwinds. Other major tech names like Nvidia, Alphabet and Meta Platforms also lost more than 3% each. Hong Kong’s Hang Seng index rebounded from its five-day losing streak and gained about 2%, leading gains in the region. Mainland Chinese markets were also in positive territory, with the Shanghai Composite up 1.23% to snap a four-day losing streak to end at 3,189.44. The Shenzhen Component closed 0.97% higher, finishing at 10,978.08. In Australia, the S&P/ASX 200 closed 0.56% higher at 7,118.2 ahead of tomorrow’s inflation figures for May, which will give a clue to the Reserve Bank of Australia’s rate moves in August. In Japan, the Nikkei 225 registered a fourth straight day of declines and fell 0.49% to end at 32,538.33, while the Topix saw a loss of 0.28%, ending at 2,253.8. South Korea’s Kospi ended the day nearly flat at 2,581.39, while the Kosdaq fell 0.61% to close at 874.14. Oil prices slipped on Tuesday ahead of data shedding light on U.S. appetite for fuel during the summer driving season, with the Brent benchmark’s price structure indicating bulls are retreating. Brent crude futures were down 90 cents, or 1.1%, at $73.36 a barrel, while U.S. West Texas Intermediate (WTI) futures fell 88 cents, or 1.1%, to $68.59 a barrel, erasing some earlier gains. Both contracts are trading broadly in the middle of a $10 a barrel range traced since early May. Gold prices extended gains to a third session on Tuesday supported by a softer dollar, although investors remained cautious following recent hawkish comments from U.S. central bank officials indicating a need for more interest rate hikes. Spot gold rose 0.1% to $1,923.79 per ounce. U.S. gold futures held steady at $1,933.60.
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