S&P 500 Futures Slip After Index Hits Record
April 12 2021 - 5:10AM
Dow Jones News
By Joe Wallace
U.S. stock futures slipped Monday, signaling a muted opening for
major indexes that stand at record highs ahead of a busy week of
corporate earnings and economic data.
Futures tied to the S&P 500 edged down 0.2% after the
benchmark stocks gauge posted its 20th all-time closing high of
2021 on Friday. Contracts for the Dow Jones Industrial Average,
which also closed out last week at a record, ticked down 0.3%.
Futures for the technology-heavy Nasdaq-100 index were relatively
flat.
Shares of technology giants have taken back control of the rally
in U.S. stocks over the past month, helping to push major indexes
to a series of all-time highs. Investors' concerns about owning
shares that are sensitive to rising interest rates have been
assuaged by a retreat in yields on U.S. government bonds. Some say
the shift into economically-sensitive sectors went too far at a
time when major economies like the European Union and India are
grappling with fresh coronavirus outbreaks.
Investors on Monday said they were positioning for the start of
earnings season, as well as data that will help to gauge whether a
coming burst of inflation will prove transitory. Inflation data due
on Tuesday are expected to show consumer prices picked up in
March.
"All of these things need to deliver in quite a Goldilocks
manner for the current gains to remain intact," said Edward Park,
chief investment officer at U.K. investment firm Brooks Macdonald.
There's "a bit of a question mark in markets just saying: We're
seeing strong gains; is this quite right?" Mr. Park said.
In bond markets, the yield on 10-year Treasury notes ticked down
to 1.651%, from 1.664% Friday. Yields, which move in the opposite
direction to bond prices, have fallen back from their closing high
of 1.749% in late March, but are still up from a low of 0.915% in
early January.
Brent-crude futures, the benchmark in international energy
markets, fell 0.6% to $62.56 a barrel. The Organization of the
Petroleum Exporting Countries is due to release a regular forecast
of global supply and demand of oil Tuesday.
In overseas markets, European stocks edged down 0.3%, led by
shares of basic-resource and retail companies.
Among individual European equities, shares of Suez rose roughly
8% in Paris after the French waste and water management company
said Monday that it had agreed to merge with Veolia Environnement.
Shares of French utility Veolia rose over 7%.
Stocks pulled back in major Asian markets. China's Shanghai
Composite fell 1.1% by the close and Japan's Nikkei 225 lost
0.8%.
Write to Joe Wallace at Joe.Wallace@wsj.com
(END) Dow Jones Newswires
April 12, 2021 04:55 ET (08:55 GMT)
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