Lower stock futures are ahead of evidence from Fed’s Powell on economics

Stock index futures were lower on Tuesday, with technical shares continuing to lead the way down, as investors watched sharp increases in bond yields and prepared for evidence by Federal Reserve Chairman Jerome Powell on the economic outlook.

What do key criteria do?
  • The future of the Dow Jones YM00 business average,
    rose 17 points, or 0.1%, to 31,483.

  • S&P 500 futures ES00,
    down 14.85 points, or 0.4%, at 3,858.75.

  • Nasdaq-100 NQ00 futures,
    it rose 185.75 points, or 1.4%, to trade at 13,038.50.

A major loss for the technical parts of the Nasdaq COMP,
significantly lower on Monday, falling more than 2%, and also measuring the S&P 500 SPX,
The S&P 500 suffered its fifth straight loss, the longest climb the index has lost since a seven-day slip that ended in February last year. 28. An Dow DJIA,
+ 0.09%,
at the same time, it benefited from turning to a more cyclical stock, gaining a gain of 27.37 points, or 0.1%.

What drives the market?

A sharp rise in Treasury yields has caught the attention of investors, a spelling problem for tech and other previously high-profile leaflets. Higher yields make it more difficult to justify extended valuation. At the same time, segments of companies that are more reliant on the economic cycle have benefited, driven by expectations for a build-up in growth as the economy reopens with the permission of aggressive fiscal stimulus, vaccine transmission and COVID-19 case falls.

Powell, at 10am East, is expected to begin the first of two days of conference certification. Investors will be keen to hear his views on the rise in bond yields and inflation expectations, although Fed chief has stressed the central bank’s determination to hold back from pulling back monetary stimulus so that inflation has exceeded the 2% target.

Powell “will either make or break the day for investors,” said Ipek Ozkardeskaya, senior analyst at Swissquote. Powell is likely to reiterate the Fed’s support for financial markets and the economy until significant progress is made in developing the labor market, but it is also certain to be questioned about an increase in inflation expectations, especially after the sharp rise in producer price index last month. .

“So the investor’s sentiment will largely depend on Powell’s conviction to uphold his ultraloose monetary policy and the feasibility of continuing with such a soft hand under market conditions,” Ozkardeskaya said.

On the crown, the Household Budget Committee on Monday approved a $ 1.92 trillion bill to implement President Joe Biden’s coronavirus relief plan, the first step toward a seemingly enduring House path. of the week. While the final package appears to be in decline, analysts expect its latest price tag to come close to Biden’s $ 1.9 trillion recommendation.

Bitcoin BTCUSD,
continues to fall sharply from its high above $ 50,000 after Finance Secretary Janet Yellen on Monday described the cryptocurrency as a “highly inefficient” way of doing business.

Read: Tesla-bitcoin-ARK Investment’s tight market net could cause investors trouble, warns strategist

Around December housing data is on tap, with S&P CoreLogic Case-Shiller home price index and FHFA home price index both at 9m. Consumer confidence index is ready for release at 10am

Which companies are the focus?
  • Shares of electric vehicle manufacturer Tesla Inc.
    premarket activity fell more than 4% as bitcoin fell sharply. Tesla revealed earlier this month that it had bought $ 1.5 billion of the cryptocurrency.

  • Palo Alto Networks Inc.
    Shares fell more than 2% after the cybersecurity company’s quarterly earnings forecast range fell short of Wall Street’s consensus late Monday, beating estimates for the previous quarter.

  • Home Depot Inc.
    Shares fell even after the home sales giant reported fiscal profit and sales in the fourth quarter that rose above expectations and spurred its share by 10%.

  • Software-as-a-service company ZoomInfo Technologies Inc.
    The end of Monday announced the results of a fiscal fourth quarter that exceeded expectations. Shares rose more than 8% in pre-sale activity.

  • Sections of RealReal Inc.
    + 1.38%
    they were down more than 10% after the e-commerce retailer of second-hand luxury goods late Monday posted a wider quarterly loss and said the pandemic had a “temporary breakdown” on its path to profit.

What are other markets doing?
  • Yield on 10-year Finance note TMUBMUSD10Y,
    the rise continued, up 1.5 basis points at 1.371%. Bond yields and prices move in other directions.

  • US DXY ICE Dollar Index,
    + 0.17%,
    the amount of currency was measured against a basket of six main competitors, up 0.1%.

  • Oil futures widened the rise, by U.S. benchmark CL.1,
    up 0.8% to trade above $ 62 per barrel. The golden future of April GCJ21,
    + 0.04%
    they were up 0.1% near $ 1,810 an ounce.

  • In overseas stock trading, the European pan Stoxx 600 SXXP,
    fell 0., 9% and FTSE 100 UKX in London,
    it was off 0.3%. The Shanghai SHCOMP Composite,
    fell 0.2%, while the Hong Kong Hang Seng Index HSI,
    + 1.03%
    rose 1%.