US pre-open: Futures point to losses at the end of Q2

Wall Street futures were pointing to losses ahead of the bell on the final day of trading for June and for the second quarter.

As of 1225 BST, Dow futures were down 0.23%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.15% and 0.09% weaker, respectively.

The Dow closed 580.25 points higher on Monday despite a spike in new coronavirus cases in certain US states over the weekend.

For the most part, investors will be focussed on testimony from Federal Reserve chairman Jerome Powell and treasury secretary Steven Mnuchin in front of the House Financial Services Committee at 1730 BST.

In prepared remarks for his testimony, which had been released overnight, Powell told the committee that the US economic outlook will remain uncertain for some time as a result of the Covid-19 pandemic.

“Output and employment remain far below their pre-pandemic levels. The path forward for the economy is extraordinarily uncertain and will depend in large part on our success in containing the virus,” Powell will say. “A full recovery is unlikely until people are confident that it is safe to reengage in a broad range of activities.”

Also in focus, Beijing warned that it would retaliate against the US if the Trump administration stripped Hong Kong of its special status and treated it the same as mainland China. While Trump has confirmed the US-Sino trade deal was still in place, it was again seen as being potentially at risk in light of recent developments.

On the macro front, April’s S&P/Case-Schiller Home Price index will be posted at 1400 BST, while the Chicago PMI for June will follow at 1445 BST.

The other main highlight of the day, the Conference Board‘s June consumer confidence survey, will follow at 1500 BST.

In addition to Powell’s testimony, Fed heads Williams, Brainard, Bostic and Kashkari are all scheduled to deliver speeches throughout the course of the day.

In the corporate space, shares in chipmaker Micron were stronger ahead of the bell after topping earnings estimates and issuing some strong forward revenue guidance, while athletic wear maker Lululemon stock was also trading higher after news broke that it would be acquiring in-home fitness business Mirror for $500m.

Be the first to comment

Leave a Reply

Your email address will not be published.