Futures tick up after Wall St selloff on jobs data
2022.08.08 15:21
A trader walks on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 3, 2022. REUTERS/Andrew Kelly
(Reuters) – U.S. stock index futures rose on Monday after last week’s blockbuster jobs data soothed some fears about an economic slowdown, but investors remained cautious as it also added to expectations of a hawkish Federal Reserve.
The main focus this week will be on consumer prices data on Wednesday.
U.S. rate futures have priced in a 68.5% chance of a 75-basis-point hike at the Fed’s September meeting, up from about 41% before the payrolls data on Friday beat market expectations. [IRPR]
Megacap growth and technology stocks edged higher in trading before the bell, with Tesla (NASDAQ:TSLA) up 1.9%. The U.S. electric-car maker signed contracts worth about $5 billion to buy materials for their batteries from nickel processing companies in Indonesia, according to a CNBC report.
Other high-growth stocks such as Apple Inc (NASDAQ:AAPL) and Amazon.com Inc (NASDAQ:AMZN) gained as U.S. Treasury yields pulled back from sharp highs in the previous session. The benchmark 10-year yield declined 1.6% in early trading.
Meanwhile, the U.S. Senate on Sunday passed a sweeping $430 billion bill intended to fight climate change, lower drug prices and raise some corporate taxes.
Signify Health Inc jumped 15.8% on a media report that CVS Health Corp (NYSE:CVS) was looking to buy the health technology company.
At 07:09 a.m. ET, Dow e-minis were up 125 points, or 0.38%, S&P 500 e-minis were up 19.5 points, or 0.47%, and Nasdaq 100 e-minis were up 84.75 points, or 0.64%.
Palantir Technologies (NYSE:PLTR) Inc dropped 14.3% after the data analytics software company lowered its annual revenue forecast as the timing of some large government contracts remained uncertain.
Investors awaited a slew of earnings reports later in the day from the likes of insurer American International Group Inc (NYSE:AIG) and Dominion Energy Inc.
