Stock futures rise marginally after Wall Street posts slight decline

Finance

The New York Stock Exchange welcomes Lightning eMotors (NYSE: ZEV), on May 24, 2021, in celebration of its transition to a public company.
NYSE

Stock futures ticked marginally higher in overnight trading after the market rally stalled Tuesday, with major indexes ending the regular session slightly lower.

Futures on the Dow Jones Industrial Average rose just 31 points, or 0.1%. S&P 500 and Nasdaq-100 futures also climbed 0.1%.

Nordstrom shares dropped more than 6% in extended trading after the company missed the Street’s first-quarter earnings expectations, while shares of Urban Outfitters jumped roughly 6% following better-than-expected quarterly results after the bell.

The market struggled to find direction Tuesday. Stocks edged higher early in the session, but ultimately closed lower. The S&P 500 dipped 0.2% as the energy sector lagged. The Nasdaq Composite closed flat while the Dow Jones Industrial Average dipped 81.52 points, or 0.2%.

Airline, cruise line and homebuilder stocks outperformed. United Airlines jumped 1.5% after the carrier said domestic leisure fairs topped 2019 levels this month amid the reopening. Royal Caribbean and Norwegian Cruise Line shares each rose about 3.6%. NVR shares jumped about 4%.

The strong performance from reopening stocks suggests “investors are also leaning into the normalcy,” Goldman Sachs managing director Chris Hussey wrote in a note. “The news on the recovery remains very encouraging in the US. And it’s interesting to see that some stocks may have still not fully priced it in.”

“Low volatility, flat equities, declining US Treasury yields, and low trading volumes — feels a lot like a Tuesday during a pre-holiday week. In other words, this feels…normal,” Hussey said.

Investors are awaiting a speech from Federal Reserve Vice Chair Randal Quarles on Wednesday as concerns surrounding inflation and potential tapering continue.

Chief executives of the country’s largest banks — including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley — are set to testify before the Senate Banking Committee on Wednesday morning.

Dick’s Sporting Goods, American Eagle Outfitters, NVIDIA, Snowflake and other companies are expected to report earnings Wednesday.

— CNBC’s Michael Bloom contributed reporting.

Articles You May Like

Mortgage refinance demand jumps to a 2-year high, as interest rates drop
Netflix beats estimates as ad-supported memberships rise 34%
The election could have a ‘massive impact’ on the municipal bond market, analyst says
The ultra-wealthy just gained $49 trillion in wealth thanks to stocks
Dimon and other Wall Street CEOs react to Trump assassination attempt: ‘Deeply saddened’ by violence