Futures under pressure from rising yields; Tesla has record deliveries

A Wall St. street sign is seen near the New York Stock Exchange (NYSE) in New York City, the United States, on September 17, 2019. REUTERS / Brendan McDermid

  • New round of US-China trade talks in mind
  • 3M falls due to JPM downgrade, Merck rises on COVID-19 pill
  • Futures down: Dow 0.25%, S&P 0.31%, Nasdaq 0.43%

Oct. 4 (Reuters) – U.S. stock indices should open lower on Monday as most major technology stocks come under pressure from a surge in government bond yields, while Tesla stocks rose after reporting a record number of electric vehicle deliveries.

US Treasury bond yields were supported by recent data pointing to rising consumer spending, accelerated factory activity and increased inflationary growth, fueling bets that the Federal Reserve may begin tightening its expansive monetary policy sooner than expected. [US/]

Emerging growth companies such as Apple Inc (AAPL.O), Facebook Inc (FB.O), Microsoft Corp (MSFT.O), Alphabet Inc (DemokratieL.O) and Amazon.com Inc (AMZN.O) fell between 0.2% and 0.9% in pre-trading.

“In an environment of rising interest rates, you’ve historically been rewarded for investing in the cyclical and cyclical stocks versus technology stocks. That doesn’t mean technology will collapse, just that cyclical stocks will improve in the months ahead should develop. ” said Thomas Hayes, executive director of Great Hill Capital LLC in New York.

“The markets are really focused on Washington and the uncertainty that they can’t agree on the infrastructure bill, the social spending plan and raising the debt ceiling.”

Wall Street’s major indices were hit in September amid concerns over the US debt ceiling, the fate of a massive infrastructure spending bill and the collapse of the heavily indebted China Evergrande Group (3333.HK).

Trading in shares of debt-laden Evergrande was suspended on Monday, further unsettling markets about the impact of its troubles, even as media reports said the company would sell a stake in its property management unit for over $ 5 billion. Continue reading

Markets also waited for US President Joe Biden’s new trade strategy plan for China, with US Trade Representative Katherine Tai holding new talks with Beijing later that day for failing to deliver on promises made in a phase 1 trade deal with the former president Donald Trump. Continue reading

At 8:24 a.m. ET, the Dow E-Minis fell 86 points, or 0.25%, the S&P 500 E-Minis fell 13.25 points, or 0.31%, and the Nasdaq 100 E-Minis fell 63.25 points, or 0.43 %.

Tesla Inc (TSLA.O) gained 2.5% after shipping a record-breaking electric car in the third quarter, beating Wall Street estimates on Saturday. Continue reading

Merck & Co (MRK.N) added 3.5%, building on Friday’s gains after creating an experimental antiviral pill that increased the likelihood of dying or being hospitalized for those who were strongest are at risk of developing severe COVID-19. Continue reading

3M Co (MMM.N) stocks fell 1.5% after JP Morgan downgraded its rating for the industrial conglomerate’s stock from “overweight” to “neutral”.

The first trial of four major pharmacy chains over the deadly opioid epidemic in the US was due to begin on Monday and the shares of Walgreens Boots Alliance Inc (WBA.O), CVS Health Corp (CVS.N) and Walmart Inc (WMT.N) put under pressure. , between 0.1% and 0.6%. Continue reading

Reporting by Shreyashi Sanyal and Devik Jain in Bengaluru; Adaptation by Maju Samuel

Our Standards: The Thomson Reuters Trust Principles.

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