Stock futures are little changed after Dow’s second straight losing day in new quarter: Live updates – CNBC
Traders work on the floor at the New York Stock Exchange on March 5, 2024.
Brendan Mcdermid | Reuters
U.S. stock futures were little changed Wednesday morning after the Dow Jones Industrial Average fell for a second day in a rough start to the quarter.
Dow futures fell by 56 points, or 0.14%. S&P 500 futures were lower by 0.15%, while the Nasdaq 100 futures dipped 0.2%.
Wall Street is coming off a losing session for the major benchmarks after sticky inflation data from last week, as well as some strong economic data, had investors concerned the Federal Reserve will take longer to cut interest rates. Treasury yields spiked, with the rate on the 10-year note touching its highest level since November. Oil prices also rose to five-month highs.
On Tuesday, the 30-stock Dow dropped nearly 400 points, or 1%. The S&P 500 lost 0.7%, while the Nasdaq Composite tumbled nearly 1%.
Still, some market observers remain optimistic overall on equities, saying stocks are due for some consolidation after a strong start to the year. The S&P 500 is coming off its best first quarter since 2019.
“I think it’s a little bit of a garden variety pullback,” Kristen Bitterly, global wealth head of investment solutions at Citi, said on CNBC’s “Closing Bell” on Tuesday. “We’ve heard day after day that we’re either touching all-time highs or within reach of all-time highs. So, I don’t see anything to read into today, more than geopolitics resurfacing, yields popping up.”
“We know that the Fed’s trajectory from here is downward. We know inflation is coming down. And we know that earnings have turned a corner as well,” Bitterly continued. “So, when you have that fundamental backdrop, it’s actually pretty constructive for risk assets overall.”
On Wednesday, investors will get more insight into the labor market with the ADP private payrolls report, which comes ahead of the March jobs data on Friday. The ISM services index is set to release after the open.
Federal Reserve Chair Jerome Powell is also set to speak, as is a slew of other central bank speakers including Fed Governors Michelle Bowman and Adriana Kugler. Chicago Fed President Austan Goolsbee and Fed vice chair for supervision Michael Barr will also be speaking at events.
On the earnings front, Levi Strauss will be reporting after the close.
China’s service sector activity expands at fastest pace since December
China’s service sector activity expanded at its fastest pace since December, according to surveys from Caixin.
The services purchasing managers index in China rose to 52.7 in March, up from 52.5 in February. This also marked the 15th straight month of expansion for the sector.
Caixin noted in its report that this was due to new business in the sector rising, with anecdotal evidence revealing that “improvements in underlying demand conditions and business development efforts helped to boost the rise in new work,” the report said.
— Lim Hui Jie
Uniqlo-owner Fast Retailing plunges 4% to two-week low
Shares of Fast Retailing plunged to a two-week low, falling over 4%, after the firm disclosed that same-store sales in its Uniqlo stores in Japan fell in March. The firm is the largest component of the Nikkei 225 index.
The company saw five store openings in March domestically, but eight store closures.
Same-store sales, including online sales, decreased by 1.5% year on year, while total sales in March increased by 1%.
Fast Retailing explained the sales contraction was due to sales of spring items struggling to gain momentum, due to “persistently cold weather throughout the month [in Japan].”
— Lim Hui Jie
Country Garden sales plunge over 80% in March
TSMC evacuates factory areas after earthquake hits Taiwan
The logo for Taiwan Semiconductor Manufacturing Company is displayed on a screen on the floor of the New York Stock Exchange on Sept. 26, 2023.
Brendan Mcdermid | Reuters
Taiwan Semiconductor Manufacturing Co evacuated production lines after a major earthquake hit Taiwan early Wednesday.
A company spokesperson said safety systems were operating normally.
“To ensure the safety of personnel, some fabs were evacuated according to company procedure,” the person said.
Shares of TSMC fell 1.5% in early trading, while the broader Taiwan Weighted Index dropped 0.9%.
— Shreyashi Sanyal
ADP private payrolls data set to release Wednesday
The ADP private payrolls report is set to release before markets open on Wednesday. Economists polled by Dow Jones anticipate companies to have added 155,000 in March. That would be an increase from the 140,000 positions added in the prior month.
— Sarah Min
Second-quarter selloff marks a ‘return to the norm,’ says 50 Park Investments’ Sarhan
The recent stock market selloff resembles a “return to the norm” after a long period of upward and sideway moves, according to Adam Sarhan.
“We’ve seen the market go pretty much up or sideways just about every single day for the last five months,” said the CEO of 50 Park Investments. “It’s perfectly normal and long overdue to see some selling come into the market. That’s what’s happening now after a big move up.”
He added that investors may also be “taking some risk off the table” ahead of fresh data points, including Friday’s March jobs report.
— Samantha Subin
Stocks making the biggest moves after hours
Here are the stocks making the biggest moves in extended trading:
- Intel — Shares dropped about 4% after Intel disclosed a $7 billion operating loss in its foundry business.
- Cal-Maine Foods — Shares jumped 5.2% after the egg producer exceeded expectations in its latest quarter. In its third quarter, Cal-Maine Foods reported earnings of $3 per share, better than the $2.45 per-share earnings anticipated by analysts polled by FactSet. Revenue of $703.1 million topped the FactSet consensus estimate of $692.4 million.
- Dave & Buster’s Entertainment — Shares gained 5% after the restaurant and entertainment company reported its latest quarterly results. Dave & Buster’s Entertainment posted adjusted fourth-quarter earnings of $1.03 per share, weaker than the FactSet consensus estimate of $1.10 per share. Revenue of $599.1 million was also lower than the $602.6 million estimate.
— Sarah Min
Stock futures open little changed Tuesday night
Stock futures opened little changed Tuesday night.
Dow futures rose 9 points, or 0.02%. S&P 500 futures and Nasdaq 100 futures climbed 0.03% and 0.05%, respectively.
— Sarah Min
