Stock futures edged up Wednesday morning on the heels of a mixed session a day earlier, with the three major indexes struggling for direction at the start of June.
Contracts on each of the three major indexes traded slightly above the flat line heading into the regular trading day. Brent and crude oil prices extended gains after hitting their highest levels since 2018 on Tuesday after OPEC+ suggested demand would rebound during the recovery and opted for gradual supply increases. Treasury yields fell.
Shares of Zoom Video Communications (ZM) jumped in early trading after the company’s first-quarter earnings and current-quarter guidance topped estimates, helping alleviate concerns over a growth slowdown for the software company as more in-person activities resume.
Investors this week digested more mixed data report on the U.S. economic recovery, with still more signs of supply-side disruptions emerging. On Tuesday, the Institute of Supply Management’s headline index of manufacturing sector activity topped estimates, but the report also showed that labor shortages contributed to rising prices and capped production. The Labor Department’s May jobs report on Friday is set to offer another look at the pace of re-hiring last month and the employment gaps still left to be filled following the pandemic.
But as jitters over rising inflation remain top of mind for many investors, some strategists suggested markets’ reactions to recent economic data have been overblown, given the likelihood that many of these rising prices will prove transitory.
“Overall, a lot of the fears of inflation that are going on in the markets right now are more than necessary. Investors have just been a little bit more fearful than necessary at this time,” Josh Kutin, Columbia Threadneedle Investments North America head of asset allocation, told Yahoo Finance. “That said, we have experienced some pretty serious reactions to it, even that big CPI [consumer price index] print we saw a couple weeks ago did surprise investors. And if we see something similar like that in that jobs report, that could create a little bit of a short-term blip.”
Others also suggested that investors could be in for further choppiness in trading in the near-term.
“We’ve had such a run-up since the lows of the pandemic that now, I think we’re going to see a summer that’s a bumpy ride,” Loreen Gilbert, WealthWise Financial chief executive officer, told Yahoo Finance. “And it’s an opportunity for investors to go in as we see declines, because we do expect that we’re in a bull market run that’s going to continue.”
7:44 a.m. ET: AMC shares add another 21% in early trading despite report that hedge fund sold its stake
Shares of AMC Entertainment Holdings (AMC) were on track to rally for another session even after Mudrick Capital Management reportedly sold its entire stake in AMC, with investors on Reddit looking past the sale and pushing the stock still higher.
Bloomberg reported Tuesday that Mudrick Capital no longer holds any shares in AMC and sold its shares at a profit, citing an unnamed person familiar with the matter. The report came on the same day the movie theater company announced it sold $230.5 million worth of shares to the hedge fund.
AMC shares were on track to add to a jump of 22.7% from Tuesday’s trading day. Shares have surged 220% over the last month.
7:20 a.m. ET Wednesday: Stock futures tick slightly higher
Here’s where markets were trading Wednesday morning:
S&P 500 futures (ES=F): 4,200.75, +2.25 points (+0.05%)
Dow futures (YM=F): 34,597.00, +48.00 points (+0.14%)
Nasdaq futures (NQ=F): 13,651.25, +2.5 points (+0.02%)
Crude (CL=F): +$0.68 (+1.00%) to $68.40 a barrel
Gold (GC=F): -$6.90 (-0.36%) to $1,898.10 per ounce
10-year Treasury (^TNX): -1 bp to yield 1.605%
6:24 p.m. ET Tuesday: Stock futures edge lower
Here’s where markets were trading Tuesday evening:
S&P 500 futures (ES=F): 4,195.5, -3 points (-0.07%)
Dow futures (YM=F): 34,523.00, -27 points (-0.08%)
Nasdaq futures (NQ=F): 13,639.50, -9.25 points (-0.07%)
Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck
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