Microsoft’s logo is seen at an office building in Wallisellen, Switzerland, December 21, 2020. REUTERS/Arnd Wiegmann
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- Western Digital rises after reviewing strategic options
- Intel slips on bearish brokerage comments
- Futures down: Dow 0.37%, S&P 0.31%, Nasdaq 0.23%
June 8 (Reuters) – Wall Street’s main indices were expected to open lower on Wednesday as a rally in technology and growth stocks from the previous session eased, while higher oil prices stoked concerns of a further rise in global inflation.
Microsoft Corp (MSFT.O) and Apple Inc (AAPL.O) slid 0.2% in premarket trade after gaining more than 1% each on Tuesday.
Rate-sensitive growth stocks also came under pressure from elevated Treasury yields, with the 10-year benchmark back above 3%.
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Investors will focus this week on CPI data due on Friday amid rising borrowing costs.
A hot reading would likely spook markets already worried about how the Federal Reserve will balance growth and inflation if it withdraws its pandemic-era policy support for the economy.
Volatility has gripped Wall Street in recent sessions as market participants debated whether the market has bottomed after a sharp sell-off this year.
“You’re just going to see more volatility, there’s no real game-changing news in the market, both in terms of earnings and economics,” said Rick Meckler, partner at Cherry Lane Investments.
“All you’re seeing is that people are reshuffling some positions and to some extent waiting for a better indication that inflation might be kicking in lately. Investors are worried about where energy prices could go.”
Oil prices rose on Wednesday with Brent Crude nearing $122 a barrel.
The benchmark S&P 500 (.SPX) index is up 9.2% since May 20 after falling 20.05% so far this year. Last this year it was down 12.7%, the blue-chip Dow (.DJI) is down 8.7% and the tech-heavy Nasdaq (.IXIC) is down 22.2%.
The CBOE Volatility Index (.VIX) rose and last traded at 24.44 points, higher than its long-term average of about 20 points.
At 8:12 a.m. ET, the Dow e-minis were down 122 points, or 0.37%, the S&P 500 e-minis were down 13 points, or 0.31%, and the Nasdaq 100 e-minis were down 29.5 points, or 0. 23%
Carnival Corp (CCL.N) slipped 2.2% after Morgan Stanley cut its price target on the cruise line’s shares.
Intel Corp (INTC.O) tumbled 3.2% after a bearish broker’s report from Citi said the chipmaker could make negative advance guidance or miss second-quarter guidance if conditions worsen.
Spirit Airlines Inc (SAVE.N) slipped 0.7% after it postponed a shareholders meeting to vote on its proposed merger agreement with Frontier Group Holdings Inc (ULCC.O). Continue reading
Western Digital Corp (WDC.O) rose 4.5% after the storage device maker said it was reviewing options including splitting its flash memory and HDD businesses. Continue reading
Campbell Soup Co (CPB.N) gained 3% after the packaged food maker raised its annual core sales forecast on higher prices and resilient demand for its broths and sauces. Continue reading
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Reporting by Devik Jain and Mehnaz Yasmin in Bengaluru; Edited by Arun Koyyur
Our standards: The Thomson Reuters Trust Principles.
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