High probability of ‘rate spike back up’ at end of year: The Bear Traps Report founder
The Bear Traps Report founder and editor Larry McDonald provides insight into market and economic trends.
U.S. stock futures were little changed Monday morning as the major averages looked to extend last week's record highs.
Dow Jones Industrial Average futures gained 14 points, or 0.04%, while S&P 500 futures and Nasdaq 100 futures advanced 0.08% and 0.12%, respectively.
Both the S&P 500 index and the Nasdaq Composite index closed at record highs Friday after Federal Reserve Chairman Jerome Powell’s Jackson Hole speech signaled the central bank could begin tapering later this year but that rate hikes were further out on the horizon.
WALL STREET REACTS TO FED CHAIRMAN'S SPEECH ON TAPERING, RATE HIKES
In stocks, mega-cap tech stocks including Microsoft Corp., Apple Inc. and Alphabet Inc. were all flirting with record highs after investors cheered the likelihood that interest rates would remain near zero for the foreseeable future.
ExxonMobil Corp. and Marathon Petroleum Co. were among the oil companies in focus after 95% of oil and gas production in the Gulf of Mexico was halted due to Hurricane Ida, which made landfall in Louisiana as a Category 4 storm. West Texas Intermediate crude oil was trading down 33 cents at $68.41 a barrel while RBOB gasoline was up 4.17 cents at $2.3159 per gallon.
Elsewhere, Affirm Holdings Inc. shares were on track for their best day ever after the "buy now, pay later" company said its service will be made available to some Amazon.com Inc. customers.
Shares of satellite services provider Globalstar Inc. soared after a report said Apple’s new iPhone, which will likely debut in September, will have the ability to use satellite communications.
Meanwhile, an additional 1 million shots of Moderna Inc.’s COVID-19 vaccine were put on hold in Japan after more contaminated batches were discovered and two people died. In total, about 2.6 million doses of the vaccine have been suspended in the country.
Zoom Video Communications Inc. and Cloudera In. are scheduled to report their quarterly results following Monday’s closing bell.
Overseas markets were broadly higher.
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In Europe, Britain’s FTSE 100 climbed 0.32% as France’s CAC 40 and Germany’s DAX 30 both gained 0.17%.
Japan’s Nikkei 225 paced the advance in Asia, rising 0.54% while Hong Kong’s Hang Seng index jumped 0.52% and China’s Shanghai Composite ticked up 0.17%.
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