U.S. Futures Slump as Virus Hits Travel Stocks: Markets Wrap


(Bloomberg) — U.S. futures fell with stocks as investors weighed corporate earnings and recent spikes in virus cases hit travel stocks. Oil rose and bond yields steadied.

Contracts on both the S&P 500 and Nasdaq 100 slid Tuesday, with the biggest declines in premarket trading centered on the holiday industry, including United Airlines Holdings Inc., American Airlines Group Inc. and Carnival Corp.

Even with this latest pullback in major indexes, global stocks are not far from record highs, prompting concern that markets have overplayed expectations for a global growth rebound as the pandemic rages through South America, Africa and parts of Asia.

“We do think the market is a little overextended here,” Dave Sekera, chief U.S. market strategist at Morningstar Investment Services, told Bloomberg TV, adding that broad U.S. equities look about 5% overvalued.

European shares sank by more 1% as tobacco stocks were hit by a report that the U.S. government is considering a rule to strip cigarettes of addictive levels of nicotine. British American Tobacco Plc plunged 6.6%.

Investors are awaiting further confirmation of the private sector’s recovery from the pandemic as the earnings season gathers pace. Johnson & Johnson, Netflix Inc., Procter & Gamble Co., and Lockheed Martin Corp. are due to report Tuesday.

Meanwhile, oil jumped above $64 a barrel, a year to the day after futures for the U.S. benchmark collapsed below zero, with the world’s most important commodity extending a powerful rally on bets for better demand.

Benchmark Treasury yields were little changed after spending much of the London morning higher.

Here are some key events to watch this week:

Apple’s first product unveiling of the year on Tuesday.EIA crude oil inventory report on Wednesday.European Central Bank rate decision and President Christine Lagarde briefing on Thursday.U.S. releases new home sales data

These are some of the main moves in financial markets:


Futures on the S&P 500 Index dipped 0.4% as of 11:23 a.m. London time.The Stoxx Europe 600 Index sank 1.1%.The MSCI Asia Pacific Index decreased 0.5%.The MSCI Emerging Market Index climbed 0.1%.


The Bloomberg Dollar Spot Index was little changed.The euro gained 0.1% to $1.2051.The British pound dipped 0.1% to $1.3971.The onshore yuan strengthened 0.2% to 6.497 per dollar.The Japanese yen weakened 0.2% to 108.39 per dollar.


The yield on 10-year Treasuries fell one basis point to 1.60%.The yield on two-year Treasuries was unchanged at 0.16%.Germany’s 10-year yield declined one basis point to -0.24%.Japan’s 10-year yield increased less than one basis point to 0.089%.Britain’s 10-year yield declined one basis point to 0.747%.


West Texas Intermediate crude advanced 1% to $64 a barrel.Brent crude increased 1% to $67.70 a barrel.Gold weakened 0.1% to $1,769.38 an ounce.

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2021 Bloomberg L.P.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Battlefield 2042 Specialists & launch maps revealed By EA
Latest News

Battlefield 2042 Specialists & launch maps revealed By EA

After months of speculation, EA and DICE have finally unveiled Battlefield 2042, with the reveal trailer already live and a gameplay one set to premiere on Sunday, during Microsoft’s E3 conference. There may be additional information released at that point but for now we already know quite a bit about the new maps and the Specialists, 2042’s version of the […]

Read More
UK Travel Green List & Rules for entering
Latest News

UK Travel Green List & Rules for entering

Red list countries and territories What you must do if you have been in a country or territory on the red list in the 10 days before you arrive in England. If you have been in a country or territory on the red list in the last 10 days you will only be allowed to […]

Read More
Latest News

Belarus to face Slovakia in 2021 IIHF World Championship opener

Belarus will open the 2021 IIHF World Championship against Slovakia in Riga on 21 May, BelTA has learned. The Group B match will be played at the Olympic Sport Center. The faceoff is at 20.10. Belarus 5 TV channel will broadcast the match live. Ahead of the IIHF World Championship Belarus played a number of […]

Read More