Dow, S&P futures rise as banks, energy stocks rebound

[July 09, 2021]  By Devik Jain

(Reuters) - The Dow and S&P 500 futures rose on Friday as energy and banking shares rebounded from a sharp selloff that was triggered by growth worries and has put the indexes on track for their biggest weekly fall since mid-June.

Energy firms such as Exxon Mobil Corp, Devon Energy Corp, Schlumberger NV, Occidental Petroleum Corp and Halliburton Co rose between 1% and 1.8% in premarket trading, tracking oil prices.

Rate-sensitive lenders Wells Fargo & Co, Morgan Stanley, JP Morgan Chase & Co, Citigroup Inc, Goldman Sachs Group Inc and Bank of America Corp gained between 0.9% and 2%, as the benchmark 10-year Treasury yield rose, breaking an eight-day falling streak.

Among companies benefiting from economic reopenings, cruise operators including Royal Caribbean Cruises Ltd and Carnival Corp added more than 2.5% each, while airlines such as United Airlines Holdings and American Airlines Group Inc rose about 1.5% each.
 

Wall Street's main indexes slid on Thursday, as investors flocked to bond markets amid concerns that the domestic economic recovery was losing steam, with the S&P 500 and the Nasdaq pulling back from record closing highs in a broad selloff.

The S&P 500 is down 0.7% so far this week, while the Dow has declined 1%. The Nasdaq is set to post a smaller weekly decline of 0.5%, helped by a recent move into growth companies, but was still on track for its worst week since mid-May.

Focus will now shift to second-quarter earnings, with big banks reporting next week. Analysts expect earnings growth of 65.4% for companies in the S&P 500 index in the second quarter, up from a previous forecast of 54% growth at the start of the quarter, according to IBES data from Refinitiv.

People are seen on Wall Street outside the New York Stock Exchange (NYSE) in New York City, U.S., March 19, 2021. REUTERS/Brendan McDermid

Graphic: Q2 expected to see peak results for U.S. companies - https://graphics.reuters.com/USA-STOCKS/EARNINGS/
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At 6:45 a.m. ET, Dow e-minis were up 202 points, or 0.59%, S&P 500 e-minis were up 13.75 points, or 0.32%.

Nasdaq 100 e-minis were down 22.75 points, or 0.15%, with mega-cap technology stocks Google owner-Alphabet Inc, Facebook Inc, Apple Inc, Microsoft Corp and Amazon.com slipping between 0.1% and 0.3%.

Levi Strauss & Co gained 3.3% as it forecast a strong full-year profit after beating quarterly earnings estimates on improving demand across its markets for jeans, tops, and jackets.

U.S.-listed shares of Chinese ride hailing company Didi Global Inc rose 4.5%, for the first time in five days as it was recently hit by an investigation from China's internet watchdog.

(Reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; Editing by Arun Koyyur)

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