Home Business Wall Street: futures on the rise. Focus on strategist alert on Treasury rates with Covid and pseudo-stagflation scenario

Wall Street: futures on the rise. Focus on strategist alert on Treasury rates with Covid and pseudo-stagflation scenario

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Futures on US stock indices up, after the negative close on the eve of the day. Yesterday, on Wall Street, the Dow Jones Industrial Average lost 211 points, the S&P 500 fell 0.26%, the Nasdaq Composite fell 0.33%, although most of the Big Tech closed in positive.

The Russell 2000 small cap index underperformed, with a loss of 1.2%. After 1pm Italian time, futures on the Dow Jones advance by 0.20% to 35.942 points; futures on the S&P 500 are up by 0.34% to 4,702 points, while futures on the Nasdaq are up by 0.58% to 16,404 points.

Among the stocks, in the premarket, the strong decline of Cisco is highlighted, which yesterday, after the close of the session, announced that it had reported a turnover, in the third quarter of the year, lower than analysts’ expectations, also issuing a guidance on its balance sheet weaker than estimated.

The stock of the Internet networking group capitulated 8% in Wall Street afterhours trading and is now down 6.7%.

Focus also on Nvidia, which announced it closed the third quarter of 2021 with profits that beat analysts’ expectations and revenues jumped 50% year-on-year to $ 7.1 billion, better than the $ 6.81 billion expected by consensus. of analysts interviewed by Bloomberg. Earnings per share came in at $ 1.17, up from $ 1.11 expected. The chip maker has just rolled out its new hardware and software for its metaverse platform, Omniverse. Other initiatives also include those that focus on autonomous driving and artificial intelligence. The stock, on the strength of a race equal to + 125% since the beginning of the year, jumped in afterhours trading on Wall Street by more than 5% and now rallies by 7.5%.

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Good on the Dow Jones Boeing + 1.60%, which benefits from the positive note of the analysts of JP Morgan, according to which the title of the American aerospace giant has a significant margin of upside given that the company is solving several problems that have besieged in recent years.

Down Kraft Heinz, down more than 2% after the multinational announced a sale of common shares.

On the Wall Street trend Jim Paulsen, chief investment strategist for Leuthold Group, noted that “the latest economic data remains solid” but also that “today’s equity trend indicates that the market is already pricing in the new wave. of Covid “.

“Concerns about Covid – added Paulsen – have also led ten-year interest rates on 10-year Treasuries to fall for the first time in six days, and have exerted downward pressure on commodity prices, including the significant drop in prices. of crude oil. If inflation were to continue to rise and at the same time a new wave of Covid would return to ballast the real economy, we could find out how the stock market would manage a pseudo-stagflationary period “.

Focus on oil prices, with the WTI contract trading on New York’s Nymex losing as much as -3% and Brent slipping 2.6% after rumors reported by Reuters that the Biden administration of the United States would asked large raw food consuming countries, such as China and Japan, to consider the option of drawing on their respective strategic reserves in a coordinated way, in order to lower oil prices.

Prices remain down, with WTI dropping 0.43% to $ 78.02 a barrel at approximately 13.05 Italian time and Brent dropping approximately 0.24% to $ 80.09.

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