US futures accelerate to the upside, anticipating Wall Street’s desire for recovery. The US stock exchange reopens today after the long weekend of the United States Labor Day celebrations (Labor Day is celebrated in the United States on the first Monday of September).
At approximately 12.40 Italian time, futures on the Dow Jones jumped by more than +250 points (approximately + 0.80%); futures on the S&P 500 are up 0.86% and futures on the Nasdaq are up about 1%.
Among the titles, the thud of Bed Bath & Beyong, which in the premarket collapsed by 16%, in the red for the fifth consecutive session and after the shock news of the suicide of its financial director.
Gustavo Arnal, executive of Bed Bath & Beyond, an American chain of home improvement stores, committed suicide by jumping from the balcony of a skyscraper apartment. This was announced by the New York Police Department.
Bed Bath & Beyond is trying to save itself and avoid bankruptcy, with the layoff of around 20% of employees, the closure of around 150 stores and the cut of several home goods brands.
The group has announced that it has obtained funding of over $ 500 million to support its difficult financial conditions. Arnal has been cited as a defendant in a lawsuit accusing him, Ryan Cohen and other large shareholders of putting in place a ‘pump and dump’ scheme to artificially inflate the company’s share price. The lawsuit was filed on August 23 in the United States District Court for the District of Columbia.
Wall Street restarts today after the negative closing of the session last Friday, following the release of the US employment report which, initially, was welcomed by investors.
The US economy created 315,000 new jobs in August, better than the analyst consensus expected to rise by 300,000, with Dow Jones economists forecasting a slightly higher +318,000 point increase. Basically, the figure was in line with estimates.
The slowdown in payroll growth is evident, considering that 526,000 new jobs were created in July. The unemployment rate rose to 3.7% from 3.5% in August against a labor force participation rate that rose to 62.4% from 62.1% prior to and to 63.4% prior to the period of the pandemic.
The prospect of a less aggressive Fed on rates did not spare Wall Street new falls.
The Dow Jones Industrial Average cleared the 370 point gains at the start of the session to drop by 337.98 points, or around 1.1%, to 31,318.44 at the end of the session.
The S&P 500 suffered a 1.1% decline to 3,924.26, its lowest close since late July, while the Nasdaq Composite fell 1.3% to 11,630.86, bringing the first trail back. six session bearish from 2019.
All three major equity indices on the US stock exchange closed the third consecutive week in the red. The Dow Jones and the S&P 500 lost 3% and 3.3% respectively, while the Nasdaq ended the week with a 4.2% loss.
On the forex market, eyes focused on the euro-dollar, which yesterday pierced the $ 0.99 threshold for the first time since 2002, or in 20 years, discounting the announcement of the Russian energy giant Gazprom which, last Friday, contrary to market expectations, it communicated the last minute decision not to reactivate the Nord Stream 1 gas pipeline. The pipeline, which transports gas from Russia to Europe, was initially suspended for only three days, on 31 August. At about 12.20 Italian time the euro clears most of the gains collected in the last hours and remains little moved around $ 0.9928.
Treasury rates are pointing up. The focus remains on two-year Treasury rates, more sensitive to the Fed’s monetary policy decisions, which last week soared to 3.55%, a record since 2007.
Yields are up 3.441% today. 10-year Treasury rates also rose, rising to 3.227%.