(March 3) U.S. stock index futures rose on Wednesday as a swift global roll out of vaccines and a new round of stimulus bolstered bets on a quick economic rebound, with investors also focusing on private employment and service sector reports.
Futures for the Dow Jones Industrial Average climbed 213 points to 31,571.00 while the Standard & Poor’s 500 index futures rose 22.50 points at 3,890.00. Futures for the Nasdaq 100 index rose 73 points to 13,128.25.
Senate lawmakers are expected to begin debate Wednesday on President Biden’s $1.9 trillion dollar relief package, but the price tag has been a sticking point for many Senate Republicans and even some moderate Democrats.
U.S. Market Yesterday
Wall Street ended lower on Tuesday.The S&P 500 technology sector index dropped 1.6%, extending a pullback from late last month after a selloff in the U.S. bond market sparked fears over highly valued stocks. The consumer discretionary index dipped 1.3%, with Amazon falling 1.6%.
The Dow Jones Industrial Average fell 0.46% to end at 31,391.52 points, while the S&P 500 lost 0.81% to 3,870.29. The Nasdaq Composite dropped 1.69% to 13,358.79.
Latest News
1) Ross Stores, Inc. reported weaker-than-expected results for its fourth quarter and issued weak earnings guidance for the current quarter.
2) Hewlett Packard Enterprise Co reported better-than-expected results for its first quarter and raised FY21 earnings forecast.
3) PayPal Holdings Inc is purchasing Curv, a technology firm, engaged in the secure storage of Bitcoin (CRYPTO: BTC) and other cryptocurrencies, CoinDesk reported.
4) Big 5 Sporting Goods Corporation reported upbeat results for its fourth quarter and raised its quarterly dividend.
What to know today
- 7:00 a.m. ET: MBA Mortgage Applications, week ended February 26 (-11.4% during prior week)
- 8:15 a.m. ET: ADP Employment Change, February (200,000 expected, 174,000 in January)
- 9:45 a.m. ET: Markit US Composite PMI, February final (58.8 in prior print)
- 9:45 a.m. ET: Markit US Services PMI, February final (58.9 expected, 58.9 in prior print)
- 10:00 a.m. ET: ISM Services Index, February (58.7 expected, 58.7 in January)
- 2:00 p.m. ET: Federal Reserve releases Beige Book
A Peek Into Global Markets
European markets were higher today. The Spanish Ibex Index rose 0.4% and STOXX Europe 600 Index rose 0.5%. The French CAC 40 Index rose 0.8%, German DAX 30 gained 0.8% while London's FTSE 100 rose 1%. French government budget deficit increased to EUR 21.9 billion in January from EUR 20 billion in the year-ago month.
Asian markets traded higher today. Japan’s Nikkei 225 rose 0.51%, China’s Shanghai Composite climbed 1.95% and Hong Kong’s Hang Seng Index rose 2.7%. Australia’s S&P/ASX 200 rose 0.8%, while India’s BSE Sensex rose 2.3%. Indian services PMI rose to 55.3 in February from 52.8 in the prior month, while China’s services PMI dipped to a ten-month low of 51.5 for February. Japanese services PMI rose to 46.3 in February from a final reading of 46.1 a month earlier, while Hong Kong’s private sector PMI increased to 50.0 in February from 47.8 in January. The Australian GDP increased 3.1% qoq in the fourth quarter, while services PMI fell to 53.4 in February from 55.6 in the prior month.
Currencies
The Bloomberg Dollar Spot Index gained 0.1%.The euro fell 0.2% to $1.2063.The British pound was little changed at $1.3952.The onshore yuan strengthened 0.1% to 6.465 per dollar.The Japanese yen weakened 0.3% to 107 per dollar.
Bonds
The yield on 10-year Treasuries advanced five basis points to 1.44%.The yield on two-year Treasuries climbed less than one basis point to 0.13%.Germany’s 10-year yield gained two basis points to -0.33%.Britain’s 10-year yield advanced three basis points to 0.719%.Japan’s 10-year yield dipped one basis point to 0.119%.
Commodities
West Texas Intermediate crude advanced 1.9% to $60.87 a barrel.Brent crude increased 1.9% to $63.87 a barrel.Gold weakened 0.9% to $1,722.81 an ounce.
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