U.S. stock futures point to a flattish start on Wednesday after the S&P 500 Index and the Dow Jones Industrial Average retreated from record highs in the previous session. A rebound by tech stocks could lend support to the market but the absence of any major economic catalysts could render the mood uncertain, potentially leading to a range-bound move. Earnings news, and preannouncements, if any, may also guide the market. Crude oil continues to be weak amid the fluid geopolitical situation, exerting further downward pressure on energy stocks.
| Futures | Performance (+/-) |
| Nasdaq 100 | +0.09% |
| S&P 500 | +0.02% |
| Dow | -0.05% |
| R2K | +0.49% |
In premarket trading on Wednesday, the SPDR S&P 500 ETF Trust SPY edged up 0.07% to $580.16 and the Invesco QQQ ETF QQQ moved up 0.10% to $491.36, according to Benzinga Pro data.
Cues From Last Session:
Wall Street pulled back sharply from their record highs on Tuesday as Dutch chip-equipment maker ASML Holdings N.V.’s ASML weak revenue forecast weighed down on the artificial intelligence hardware space and oil’s plunge hurt energy stocks. The major indices opened on a mixed note after a regional manufacturing survey showed an unexpected contraction.
The S&P 500 and the Nasdaq Composite indices, which started higher, gave back their gains and fell sharply after ASML’s early earnings release. They languished below the unchanged line for the rest of the session before ending sharply lower, while the Dow was in the red throughout the session.
Healthcare stocks also pulled back strongly, while real-estate stocks ended firmer during the session.
| Index | Performance (+/) | Value |
| Nasdaq Composite | -1.01% | 18,315.59 |
| S&P 500 Index | -0.76% | 5,815.26 |
| Dow Industrials | -0.75% | 42,740.42 |
| Russell 2000 | +0.05% | 2,249.82 |
Insights From Analysts:
Given the bull market has progressed beyond the second year, more gains could follow, according to Carson Group’s Chief Market Strategist Ryan Detrick. “Going back 50 years, if a bull market makes it past it’s 2nd birthday (like this one) that is a great sign many more years could be left in the tank,” he said.
“Five bull markets made it this far and the shortest was at least 5 years old when it ended,” he added.
Upcoming Economic Data:
- The Labor Department is due to release its import and export prices report for September at 8:30 a.m. EDT. Economists, on average, expect 0.4% and 0.3% declines in export and import prices, respectively, following 0.7% and 0.3% declines in August.
Stocks In Focus:
- J.B. Hunt Transport Services, Inc. JBHT climbed over 7% in premarket trading following the release of the company’s quarterly results.
- NovoCure Limited NVCR jumped nearly 30% after the FDA approved the company’s lung cancer treatment.
- Abbott Laboratories ABT and Morgan Stanley MS are among the noteworthy companies reporting ahead of the market opening.
- Cisco Systems, Inc. CSCO rose over 1.5% on a positive analysts’ action.
- Intel Corp. INTC declined over 2% after a report said Qualcomm, Inc. QCOM has been asked to wait until the U.S. election regarding its intention to invest in the troubled chipmaker.
- Those reporting after the close include Alcoa Corporation AA, CSX Corporation CSX, Discover Financial Services DFS, Kinder Morgan, Inc. KMI and Steel Dynamics, Inc. STLD.
Commodities, Bonds And Global Equity Markets:
Crude oil futures retreated, although the loss was much more modest than Tuesday’s, while gold futures rose modestly. Bitcoin BTC/USD rose past the $67.5 level, while the 10-year U.S. Treasury note slipped 2.6 points to 4.012%.
Most Asian markets declined, led by the Japanese market, although the Chinese and Indonesian markets notched up small gains. The tech sell-off seen in Europe and the U.S. dampened sentiment in the domestic markets.
European stocks were on the back foot in early trading but the U.K. market was seen advancing.
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