Dow futures rise as Boeing shares rise, but technology stocks fell until the end of the week

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Stock market index futures were mostly lower on Friday, with technology-related stocks falling, as bond yields continue to rise, a day after the Dow Jones Industrial Average and S&P 500 closed on record. .

What do the main benchmarks do?

  • Futures above the Dow Jones YM00 industrial average,
    + 0.08%
    increased 63 points, 0.2%, to 32,431.

  • S&P 500 futures ES00,
    -0.45%
    they fell 9.30 points, or 0.2%, to 3,918.

  • Nasdaq-100 futures NQ00,
    -1.59%
    fell 151.75 points, or 1.2%, to 12,887.25.

The Dow DJIA,
+ 0.13%
on Thursday it rose 188.57 points, or 0.6%, to close at 32,485.59, based on the record close of the previous session, while the S&P 500 SPX,
-0.45%
recorded its first all-time record since Feb. 12, up 1% to 3,939.34. The Nasdaq Composite COMP,
-1.46%
jumped 2.5%.

What is driving the market?

A rebound in technology-related stocks boosted stocks on Thursday, but a renewed rise in Treasury yields early Friday, with the rate of the ten-year TMUBMUSD10Y note,
1.609%
jumping more than 8 basis points to trade above 1.61%, growth-oriented stocks were expected to fall again in the last session of the week.

You need to know: Here’s how far the Nasdaq could fall if bond yields reach 2%

It has been a volatile week for stocks, including the Nasdaq, which has recorded gains or losses of more than 2% in three sessions.

“We believe the recent stock volatility is likely to continue as investors try to balance growing optimism about growth with concerns about higher inflation,” said Mark Haefele, investment director at UBS Global Wealth Management, in a note.

“But while we expect conditions to remain volatile, the latest developments in three of the market’s major engines (stimulus, pandemic news and inflation data) point to a further increase in equity,” he said. .

President Joe Biden on Thursday signed a $ 1.9 trillion COVID-19 relief package. In a televised speech Thursday night, Biden pledged to make sure all adults could get vaccinated before May 1st.

It is seen that the combination of aggressive tax spending and progress in vaccine deployment stimulates economic growth, but it can also lead to inflation, at least in the short term.

Analysts said technology stocks could also be vulnerable to pressure after the Chinese market regulator on Friday said it had imposed fines on some of the country’s largest technology companies.

In addition, Bloomberg reported that the Biden administration had informed some vendors of Huawei Technologies Co. of China that would impose stricter conditions on previously approved export licenses, banning items for use on or with 5G devices.

Meanwhile, with US wholesale inflation in February, the producer price index came up by 0.5%, as expected. Excluding volatile food and energy prices, the month rose 0.2%, compared to expectations of a 0.3% increase, according to Econoday. On an annualized basis, the basic PPI index increased by 2.2% over last year compared to 2% the previous month.

The University of Michigan’s preliminary consumer sentiment index for March is set to be released at 10 a.m. East. It is expected to rise to 78.9 from a February reading of 76.8.

Which companies are you focusing on?

  • Actions of Ulta Beauty Inc.
    ULTA,
    -7.33%
    fell more than 8% in premarket trading after Thursday’s end saw lower fourth-quarter sales and earnings. He also announced that CEO Mary Dillon will be replaced by the company’s president, David Kimbell.

  • GoodRx Holdings Inc.
    GDRX,
    -9.91%
    shares fell 4.8% after the healthcare company reported adjusted earnings that exceeded Wall Street expectations but guided lower first-quarter sales.

  • DocuSign
    DOCU,
    -5.83%
    they were under pressure in pre-market trading, even after the electronic authentication company issued a better-than-expected quarterly outlook in its most recent quarterly report.

  • Novavax
    NVAX,
    + 14.08%
    says its COVID vaccine is effective against deadly virus variants.

  • Actions of GameStop Corp.
    GME,
    + 7.74%
    rose 3.9% in premarket trading on Friday, after a 1.9% drop in the previous session, on an otherwise mixed morning for other meme stocks.

  • Boeing Co.BA,
    + 1.43%
    has received an order from a private investment company 777 Partners to buy 24 737 MAX aircraft with the option to buy 60 more, according to a Reuters report.

How are the other assets?

  • The ICE DXY US dollar index, a measure of the currency against a basket of six major rivals, rose 0.5%.

  • Oil futures traded slightly lower, with US benchmark CL.1 falling below 01% to $ 65.97 a barrel. GC00 gold futures fell $ 18.70, or 1.1%, to trade at $ 1,703.90 an ounce, on Comex.

  • The pan-European Stoxx 600 Europe SXXP index was trading 0.4% lower and London’s FTSE 100 UKX was barely in positive territory, with a rise of less than 0.1%.

  • In Asia, Hong Kong’s HSI index fell 2.2%, Shanghai SHCOMP composite index rose 0.5%, China’s CSI 300,000,300,
    + 0.35%
    rose 0.4%, while the Japanese Nikkei 225 NIK index rose 1.7%.

  • Bitcoin BTCUSD Prices,
    -2.80%
    they were down 4% to $ 55,506 on CoinDesk trading.

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