The Dow Jones Industrial Average (DJIA) futures jumped by more than 0.20% as global stocks soared ahead of the US non-farm payrolls. Other global futures like the Nasdaq 100, S&P 500, DAX, and FTSE 100 indices also rose while the dollar index and US bond yields retreated.
Dow Jones Performance
Global stocks were mixed on Wednesday as some sectors recorded gains while others recorded losses. Oil & Gas recorded a 3.85% gain, Basic Materials recorded a 1.70% increase as Financials were on 0.73% high. Sectors like Healthcare, Technology and Utilities declined by 1.56%, 0.26% and 0.53% respectively.
The best performer in the Dow Jones Industrial Average Index was Boeing Co which was up by 3.12%. Dow was up by 2.91%. Goldman Sachs Group Inc gained 2.80% to 233.52. On the flipside, Johnson& Johnson fell by 2.29% while Amgen Inc declined by 1.86%.
Stocks tied to the economic reopening were weaker. United Airlines and American Airlines shares were slightly lower. AMC shares surged by 27% while the Meme stock rose by 22% on Tuesday after selling $230.5 million in stock.
Airline and cruise operators had their stocks on the rise as Covid cases in the United States continue to decline. Transport network is headed towards recovery as lockdown restrictions in the country ease. This will help in the country’s path to economic recovery.
US Financial Outlook
Inflation fears are still hovering in the markets as the ways in which the Federal Reserve might respond have weighed on opinions recently. Investors are worried that the Fed might decide to tighten the monetary policy earlier than expected due to the inflation in the country.
Investors will be eyeing the Fed’s Beige Book which will be released this afternoon. The book will outline how businesses are fairing and conditions in the industries such as inflation pressures and the recovering economy. The book is produced approximately two weeks before the setting of the monetary policy by the Fed hence might provide investors with an idea about the new monetary policy to be set.
Economic investors seem to have sidelined the US jobs report on Friday due to the Fed’s Beige Book. According to economists, the US is likely to have added 671,000 non-farm payrolls in MAY, from 266,000 jobs added in April.
Top Stocks to Watch Today
Lands’ End (LE) reported a profit of 8 cents per share compared to a forecast for a 29 cents per share loss. The company rose by 6.6% in premarket trading. Ambarella (AMBA) rallied 4.9% in the premarket trading. The company’s revenue beat Street projections and was boosted by strong growth in the company’s automotive business.
Advance Auto Parts (AAP) earned $3.34 per share in its latest quarter. The auto parts retailer store sales increased by 24.7% which was slightly better than the 23% estimate. The AMC Entertainment (AMC), a movie theatre operator, was up by23.7% in pre-market trading. It raised more than $230 million in a share sale which was later sold at a profit.