An employee works on the Carmen Boulogne prototype car at the factory of Spanish automobile manufacturer Hispano Suiza in Montmelo, near Barcelona on Apr. 7, 2021.
Pau Barrena/AFP via Getty Images
U.S. stock futures edged higher Tuesday, putting markets on track for at least a slight recovery after the worst day in months.
The
closed 1.6% lower on Monday in its worst session day since May 12. Futures on the S&P 500 however rose 0.5% on Tuesday.
READ MORE
European stocks also rose after the worst drop of the year. The
rose 0.9%, following a 2.3% decline on Monday, its biggest one-day drop since Dec. 21. The Nikkei 225 closed 1% lower, its fifth consecutive loss. Other Asian indexes including the Hang Seng also pulled back.
The yield on the 10-year Treasury, which fell nearly 12 basis points on Monday, rose to 1.21%.
“The concerns are cyclical. They are about the spread of the Delta variant, peak momentum, lower oil (higher U.S. inventories), peak earnings growth and the realization that high inflation is starting to impact consumption, as evident in Friday’s Michigan [consumer sentiment] survey,” said
Sebastien Galy,
senior macro strategist at Nordea Investment.
Analysts at Bespoke Investment Group said, generally speaking, the stocks that were the worst performers during last year’s bear market were the worst performers in Monday’s session—airlines, cruise lines, shopping-center real estate stocks and energy producers.
Second-quarter earnings, however, remain strong.
International Business Machines
reported revenue growth for a second consecutive quarter, as the technology services company beat expectations.
however, may see pressure as the maker of paints and industrial coatings reported a profit below Wall Street expectations and said that rising costs and supply-chain disruptions continue.
After the close, streaming service
and restaurant chain
will release results. U.S. housing starts data highlight the economics calendar.
