Stocks lower ahead of market opening bell as Wall Street awaits earnings reports


US stock futures are moving lower hours before the opening bell on Wednesday, as Wall Street awaits earnings reports from Home Depot and Macy’s.

Heart Security Latest Change Change %
Me: DJI DOW JONES AVERAGES 31521.69 +27.37 + 0.09%
SP500 S&P 500 3876.5 -30.21 -0.77%
I: COMP NASDAQ COMPOSITE INDEX 13533.048339 -341.41 -2.46%

On Wall Street, the S&P 500 fell 0.8% to 3,876.50, extending its losses to a fifth day in a row. The benchmark was split almost evenly between winners and losers, but tech stocks and companies that rely on consumer spending took the brunt of sales. Apple fell 3%, Microsoft fell 2.7%, Tesla plummeted 8.5% and Amazon lost 2.1%.

The Dow Jones industrial average gained 0.1% to 31,521.69. The Nasdaq lost 2.5% to 13,533.05. The Russell 2000 Index of smaller companies fell 0.7% to 2,251.07.

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Stocks began to lose some of their gains last week after a strong start to February, as rising interest rates and the potential for future inflation dampened some of the enthusiasm on Wall Street, although major stock indexes they remain near their all-time highs.

“Stock investors are finally paying attention to the bond market,” said Mike Zigmont, director of trading and research at Harvest Volatility Management. “With rising returns, there is a lot of nervousness in the equities arena.”

US stock futures are in positive territory hours before the opening bell on Wednesday, as Wall Street awaits earnings reports from Home Depot and Macy’s. (Courtney Crow / New York Stock Exchange via AP)

Investors remain focused on the future of global economies severely affected by COVID-19 and the potential for more stimulus to fix them. The US House of Representatives is likely to vote on President Joe Biden’s proposed stimulus package before the weekend. It would include checks of $ 1,400 for most Americans, additional payments for children and billions of dollars in aid for state and local governments, as well as additional help for businesses affected by the pandemic.

But the sheer amount of stimulus being injected into the economy has caused some investors to pause, reviving concerns about inflation that have been almost non-existent for more than a decade. Yields on US Treasuries and bonds have risen in recent weeks as investors are betting that the recovery will bring more inflation.

“There are some risks,” said Gary Schlossberg, a global strategist at Wells Fargo Investment Institute. “The problem is whether we are normalizing back to where we were before the pandemic or are we talking about a radical change.”

Tech stocks have enjoyed big gains during the pandemic as investors bet consumers who spend more time at home will increasingly rely on mobile devices, PCs, streaming video, and other tech products and services.

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Meanwhile, Asian markets were mixed on Tuesday after a sell-off of tech stocks on Wall Street.

With Tokyo closed for a national holiday, South Korea’s Kospi fell nearly 0.2% to 3,074.76. Australia’s S & P / ASX 200 gained 0.9% to 6,839.20. Hong Kong’s Hang Seng rose 1.0% to 30,618.85, while the Shanghai Composite lost 0.5% to 3,623.99.

“Fortunately, for society in general, there is more optimism than fear today, with vaccines showing scientific results on the ground validating efficacy and effectiveness on transmission, bringing the world back to normal as of soon.” said Stephen Innes, chief strategist for global markets a taxi.

Although the world’s economies have been hit hard by the coronavirus pandemic, the deployment of COVID-19 vaccines is raising hopes of recovery.

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In energy trading, US benchmark crude rose 76 cents to $ 62.46 a barrel in e-commerce on the New York Mercantile Exchange. It gained $ 2.44 to $ 61.70 a barrel on Monday. Brent crude, the international standard, rose $ 1.14 to $ 66.38 a barrel.

In currency trading, the US dollar rose to 105.09 Japanese yen from 105.08 yen. The euro costs $ 1.2167, compared to $ 1.2157.

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AP business writers Damian J. Troise and Alex Veiga contributed.

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