Nvidia demand continues to outweigh supply, JPMorgan says
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* Futures up: Dow 0.22%, S&P 0.24%, Nasdaq 0.47%
By Shashank Nayar and Medha Singh
March 19 (Reuters) - U.S. stock index futures edged higher
on Friday following a steep pullback in the prior session as
bond yields withdrew from 14-month peaks and oil prices retraced
some losses.
Oil majors Chevron Corp CVX.N and Exxon Mobil Corp XOM.N
added 1.2% and 1.5% in premarket trading as crude prices
stabilized a day after a selloff driven by concerns over demand.
O/R
FedEx Corp FDX.N jumped about 3% after the U.S. delivery
firm said quarterly profit jumped more than expected on higher
prices and surging volume from pandemic-fueled e-commerce
deliveries during the holiday shipping season. Yields on U.S. 10-year notes US10YT=RR , which have risen
sharply in the past seven weeks on growth expectations, edged
lower on Thursday to 1.687% after touching their highest since
January 2020 peak of 1.754%. US/
Optimism over a $1.9 trillion fiscal package and the Federal
Reserve's promise to maintain its ultra-loose policy stance for
years has accelerated a shift into economy-linked stocks,
powering the S&P 500 and the Dow to record levels this week.
However, the Nasdaq is still about 7% below its Feb. 12
all-time closing high as technology and high-growth stocks have
lost favor, with their valuations looking expensive with a jump
in yields.
Several bond managers believe the recent pace of the rise in
yields in the U.S. Treasury market has been unsettling and also
worry the market could be viewed as disorderly if the momentum
continues. Investors are turning their attention to prospects that
higher taxes could threaten the rally in U.S. stocks as
President Joe Biden's administration moves forward with its
agenda and seeks ways to pay for its spending plans.
Yield-sensitive tech stocks such as Apple Inc AAPL.O ,
Facebook Inc FB.O , Netflix Inc NFLX.O , Amazon.com Inc
AMZN.O and Microsoft Corp MSFT.O gained nearly 0.6% in
premarket trading.
At 06:35 a.m. ET, Dow E-minis 1YMcv1 were up 71 points, or
0.22%, S&P 500 E-minis EScv1 were up 9.5 points, or 0.24% and
Nasdaq 100 E-minis NQcv1 were up 59.5 points, or 0.47%.
Market trading volumes are expected to rise on Friday due to
"quadruple witching," in which futures and options expiries
occur, and that typically also translates into elevated
liquidity.
Nike Inc NKE.N dropped about 2.7%, leading losses among
the 30 Dow components trading before the bell, after the company
missed quarterly sales estimates due to shipping issues and a
pandemic-related slump at brick-and-mortar stores.