Big Tech battles back as bond yields ease
Strategist predicts bull market despite stock gyrations
BMO Capital Markets chief strategist Brian Belski, Simpler Trading director of options Danielle Shay and Peapack Private Wealth Management managing principal David Dietze provide insight into market movements, the Federal Reserve, inflation and promising stocks.
U.S. stock futures battled higher Tuesday morning as bond yields eased off their highest level in over a year.
Dow Jones Industrial Average futures were higher by 99 points, or 0.31%, while S&P 500 futures and Nasdaq futures gained 0.38% and 2.15%, respectively.
The rally comes a day after the Nasdaq Composite slid into a correction, down at least 10% from its recent peak, as the 10-year yield climbed 4 basis points and closed at a 13-month high of 1.59%.
On Tuesday, the benchmark yield was trading down 5 bps at 1.54%, below where it closed on Friday.
In stocks, mega-cap technology names that have been mauled amid the recent rise in bond yields were bouncing back with Tesla Inc., Apple Inc. and Netflix Inc. outperforming.
GameStop Corp. shares were on track for a sixth straight day of gains, seeing continued strength from Monday that developed after the company said Ryan Cohen, founder of online pet food supplier Chewy, would lead its e-commerce push. Fellow Reddit favorite AMC Entertainment Holdings Inc. will report after the closing bell.
Elsewhere, Peloton Interactive Inc. announced plans to expand to the Asia-Pacific region. The company will begin selling its workout equipment in Australia later this year.
Apparel retailer Gap Inc. is considering selling its China business, according to Bloomberg News, citing people with knowledge of the matter.
In earnings, Dick’s Sporting Goods reported better-than-expected quarterly earnings and revenue, but warned full-year sales may not be as strong as previously anticipated
Personal styling platform Stitch Fix Inc. swung to a quarterly loss as holiday sales came in softer-than-expected. The company lowered its full-year revenue forecast due to shipping and processing delays.
In commodities, West Texas Intermediate crude oil rose 65 cents to $65.70 per barrel while gold jumped $27 to $1,705 an ounce.
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Overseas markets were mostly higher.
Britain’s FTSE 100 outperformed as U.K. retail sales returned to growth, trading up 0.73%, while Germany’s DAX and France’s CAC advanced 0.35% and 0.32%, respectively.
In Asia, China’s Shanghai Composite slumped 1.82%, Hong Kong’s Hang Seng climbed 0.81% and Japan’s Nikkei 225 gained 0.99%.
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