Wednesday July 8th

8-07-2020

Stock futures rise slightly following sell-off on Wall Street

U.S. stock index futures rose Wednesday, following weakness in equities in the previous session. Dow Jones Industrial Average futures traded 37 points higher, or 0.1%. S&P 500 futures gained 0.2% and Nasdaq-100 futures climbed 0.4%. Shares of Apple and Amazon gained 0.9% each in the premarket to lead the early advance. Netflix and Alphabet traded higher as well. Sentiment was kept in check as the U.S. reported a record daily spike of more than 60,000 coronavirus cases. That latest surge brought the total number of confirmed U.S. cases to nearly 3 million, according to Johns Hopkins University. “The COVID numbers in the US remain troubling and this is beginning to create economic headwinds,” said Adam Crisafulli, founder of Vital Knowledge, in a note. On Tuesday, the Dow Jones Industrial Average fell 397 points, or 1.5%, breaking a two-day winning streak. The Dow was brought down by a 4.8% drop in Boeing. The S&P 500 also registered a loss, slipping 1.1%, to break a five day win streak. The Nasdaq Composite lost 0.86%, after notching its 27th intraday all-time high of the year earlier in the session on Tuesday. The technology-heavy index was positive for most of the day thanks to strength in Apple, Microsoft, Facebook and Netflix, which all hit record highs. “While significant gains in technology stocks kept the market afloat yesterday, even these market darlings capitulated during the afternoon hours today,” Jim Paulsen, chief investment strategist at the Leuthold Group, told CNBC. “Concerns about rising U.S. Covid case counts continued to shake confidence in reopening efforts about the country,” Paulsen added. Stocks in Asia Pacific were mixed on Wednesday as concerns surrounding the coronavirus pandemic continued to linger. Mainland Chinese stocks built on the solid run they’ve had so far this week as they led gains in the region for yet another day. The Shanghai composite closed 1.74% higher at around 3,403.44 while the Shenzhen component rose 1.841% to end its trading day at about 13,406.37. Hong Kong’s Hang Seng index also added 0.42%, as of its final hour of trading. Elsewhere, however, other major markets in the region saw losses on the day. In Japan, the Nikkei 225 dipped 0.78% to close at 22,438.65 while the Topix index shed 0.92% to 1,557.23. Over in South Korea, the Kospi ended its trading day 0.24% lower at 2,158.88. Oil prices were broadly stable for a fourth session on Wednesday, with rising U.S. crude stockpiles and an increase in U.S. coronavirus infections arresting a recent recovery sparked by easing lockdowns. Brent crude futures rose 8 cents to $43.26 a barrel. West Texas Intermediate crude futures were up 11 cents at $40.73 a barrel. Both benchmarks are set for a fourth session of daily percentage changes of less 1% in either direction. Gold briefly breached $1,800 an ounce on Wednesday for the first time since 2011 as mounting fears over the fast global spread of the coronavirus sent investors scurrying for safe havens. Spot gold had risen 0.3% to $1,799.22 per ounce by 0854 GMT, after hitting its highest since November 2011, at $1,800.18, earlier in the session. U.S. gold futures rose 0.2% to $1,812.90 per ounce.