Markets

US futures slip ahead of inflation and factory activity data

Oil firms including Exxon Mobil and Chevron Corp slipped about 0.9% premarket

Fri Oct 1 2021 - 11:45

US stock index futures fell on Friday with economically sensitive sectors leading declines ahead of key readings on inflation and industrial activity, while progress towards a bipartisan infrastructure package remained in focus.

Oil firms including Exxon Mobil and Chevron Corp slipped about 0.9 per cent premarket, while big banks Morgan Stanley, JPMorgan Chase & Co, Citigroup, Bank of America and Goldman Sachs Group dropped 1 per cent each.

Industrials Caterpillar, Deere & Co and Nucor Corp also came under pressure after Democratic leaders of the US House of Representatives delayed a planned vote on a $1 trillion bipartisan infrastructure bill on Thursday.

These stocks would benefit the most from government spending on infrastructure.

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Wall Street ended sharply lower on Thursday and the S&P 500 posted its worst month since the onset of the global health crisis, following a tumultuous month and quarter wrecked by concerns over Covid-19, inflation fears and budget wrangling in Washington.

All eyes are now on consumer spending, inflation and factory activity data later in the day for signs of economic health and clues regarding the Federal Reserve’s timeline for tapering its asset purchases and hiking key interest rates.

President Joe Biden signed a measure to continue funding the government through December 3rd, although congressional Democrats and Republicans continued brawling over raising the debt ceiling beyond $28.4 trillion to avert a US credit default.

Dow e-minis were down 163 points, or 0.48 per cent, S&P 500 e-minis were down 17.25 points, or 0.4 per cent, and Nasdaq 100 e-minis were down 48.75 points, or 0.33 per cent.

The S&P 500 on Thursday closed below its 100-day moving average (DMA), a closely watched technical indicator, for the first time since November 2020. All the three major Wall Street indexes are trading below their 100-DMAs.

Mega-cap tech stocks and slipped before the opening bell.

The NYSE Fang+ index, which houses some of these stocks, slipped 3.7 per cent over the July to September period, breaking its five-quarter winning streak.

Merck & Co jumped 4.7 per cent after the drugmaker’s experimental oral drug for Covid-19, molnupiravir, reduced by around 50 per cent the chance of hospitalization or death for patients at risk of severe disease in a study. – Reuters

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