Stocks seek direction as bond market threat looms

US manufacturing in ‘precarious situation’ as China mulls limiting rare earth exports: CEO of mining company

USA Rare Earth CEO Pini Althaus emphasizes the need of a domestic supply chain so critical U.S. national security products can be manufactured without reliance on China.

U.S. stock futures traded cautiously Wednesday morning as investors kept a watchful eye on the bond market.

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Dow Jones Industrial Average futures were trading higher by 3 points, or 0.01%, while S&P 500 futures and Nasdaq Composite futures were lower by 0.04% and 0.16%, respectively.

The Dow finished at an all-time high Tuesday while the S&P and the Nasdaq ended just below their own record peaks as the benchmark 10-year yield settled near 1.3%, its highest in almost a year.

GAMESTOP’S SAGA MAY BE OVER… BUT ITS EFFECT ON WALL STREET ISN’T

In stocks, Warren Buffett’s Berkshire Hathaway upped its stakes in Chevron Corp., Verizon Communications Inc., and other companies while exiting positions in Pfizer Inc., JPMorgan Chase & Co. and PNC Financial Services Group Inc, according to a 13-F filing. The conglomerate also trimmed its holdings in Apple Inc. and Wells Fargo & Co.

In earnings, Hilton Worldwide Holdings Inc. reported a surprise quarterly loss as a resurgence in COVID-19 cases resulted in tighter travel restrictions and fewer bookings. Revenue per available room, a key industry metric, was down 59% year over year.

Shopify Inc. posted stronger-than-expected quarterly earnings and revenue, but warned 2021 revenue growth will be slower than last year as COVID-19 restrictions are lifted.

In deals, oil and gas pipeline company Energy Transfer LP agreed to buy natural gas liquids transportation provider Enable Midstream Partners for $7.2 billion, including debt. The deal pays Enable common unitholders 0.8595 Energy Transfer common units for each unit they own.

In commodities, West Texas Intermediate crude oil rose 68 cents to $60.73 per barrel as wintry weather kept production idled across parts of Texas. Elsewhere in the complex, gold traded down $9.60 to $1,789.40 an ounce.

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European markets were mixed with France’s CAC 40 up 0.03%, Britain’s FTSE 100 down 0.18% and Germany’s DAX 30 weaker by 0.54%.

In Asia, Japan’s Nikkei 225 lost 0.58% and Hong Kong’s Hang Seng index added 1.1%. China’s Shanghai Composite remained closed in observance of the Lunar New Year.

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