Tesla On Track To Snap 4-Session Slide But Nasdaq, S&P 500 Futures Edgy As Rate Worries Weigh — These Tech, Oil Stocks In Focus Today

U.S. stocks are on track for a positive opening on Tuesday, as traders strive to shrug off fears concerning the economy. Investors head off to celebrate the “Thanksgiving Day” holiday on Thursday, on account of which volume is likely to be light. Given this backdrop, volatility associated with light volume cannot be ruled out.

Stocks retreated on Monday, as traders focused on the China COVID-19 situation and the rate outlook. The major averages opened on a mixed note, with the Dow Industrials starting higher, while the S&P 500 Index and the Nasdaq Composite were lower at the open. The averages moved uniformly lower in late-morning trading and stayed mostly below the unchanged line before closing lower.

Recent inflation data has tempered expectations for future Federal Reserve tightening, including a potential peak in the terminal rate near 5.0% in May or June of 2023, LPL Financial’s Adam Turnquist said.

“While the market has welcomed this news, history suggests the path to a Fed pivot could be volatile for stocks due to elevated inflation and interest rate risk,” he added.

Historically, the S&P 500 has traded lower into a Fed pivot, the analyst noted. The analyst expects the current backdrop of Fed tightening into next year to continue to support value outperformance.

“With a potential peak in interest rates occurring near a Fed pivot, we suspect growth could make a comeback during the back half of 2023,” he added.

Here’s a peek into index futures trading:

In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust SPY added 0.28% to $395.71, while the Invesco QQQ Trust QQQ moved up 0.25% to $282.51, according to Benzinga Pro data.

On the economic front, the Redbook index, a sales-weighed index of year-over-year same-sales growth in a sample of large U.S. general merchandise retailers, is scheduled to be released at 8:55 a.m. EST.

At 10 a.m. EST, the Richmond Federal Reserve will release its manufacturing and services indices for November. The headline manufacturing index is expected to show the regional economy continuing to remain in the contraction zone notwithstanding the slight improvement.

Federal Open Market Committee member and Cleveland Fed President Loretta Mester is expected to make a public appearance at 11 a.m. EST.

The Treasury will auction 7-year notes at 1 p.m. EST.

FOMC member and Kansas Fed President Esther George and St. Louis Fed President James Bullard, also an FOMC member, will speak at 2:15 p.m. EST and 2:45 p.m. EST, respectively.

See also: Worried About Inflation? This Indicator Suggests Pricing Pressure May Be On Its Way Down

Stocks In Focus:

• Zoom Video Communications, Inc. ZM shares tumbled nearly 9% in premarket trading as investors fretted over slowing revenue growth at the company.
• Retailer Urban Outfitters, Inc. URBN rose over 2% following the release of its quarterly results.
• BP plc BP and peer Shell plc SHEL advanced amid the rebound in oil prices.
• Taiwan Semiconductor Manufacturing Company Limited TSM gained close to 2% amid optimism over the stock being added to Warren Buffett’s portfolio.
• Tesla, Inc. TSLA was rebounding by about 1% after touching a fresh two-year low on Monday.
• Notable companies releasing their quarterly results on Tuesday include Medtronic plc MDT, Analog Devices, Inc. ADI, VMware VMW, Autodesk, Inc. ADSK, Dollar Tree, Inc. DLTR, Baidu, Inc. BIDU, Li Auto, Inc. LI, HP, Inc. HPQ, Best Buy Co, Inc. BBY, Campbell Soup Company CPB and Warner Music Group Corp. WMG.

Commodities, Other Global Equity Markets:

Crude oil futures were see-sawing after they snapped a three-session losing streak on Monday.

The markets in the Asia-Pacific region meandered to a mixed close on Tuesday amid lingering China COVID-19 concerns and the U.S. interest rate trajectory. Meanwhile, European stocks are advancing in early trading, helped by a firmer sentiment that prevailed among resource stocks.

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