Fall in futures prices on rise in oil allays inflation concerns

Texas News Today

FILE PHOTO: Wall Street road signs can be seen outside the New York Stock Exchange (NYSE) on July 19, 2021 in New York City, NY. Reuters / Andrew Kelly

11 October 2021

by Shreyashi Sanyal

(Reuters) – US stock index futures fell on Monday as rising commodity prices added to inflation concerns and could lead to earnings season at Wall Street banks later this week.

Rising raw material costs, labor shortages and other supply chain bottlenecks raise concerns that rising prices will impact corporate profits.

US oil rose nearly 3% to a seven-year high as the energy crisis ravaging major economies showed no signs of easing.

However, shares of Chevron, ExxonMobil and Apache rose 1.2% to 3% in pre-market transactions.

Megacap Apple Inc, Microsoft Corp and Amazon.com Inc fell between 0.6% and 0.8%.

“There is certainly a significant risk to growth as a result of recent price increases, and rising natural gas prices driving up both energy and food costs,” Joshua Mahoney, senior market analyst at IG, said in a client note. Brings more growth potential.”

“Inflation seems to be here for a while.”

At 7:01 a.m. ET, the Dow E-Mini fell 117 points (0.34%), the S&P 500 E-Mini fell 21.5 points (0.49%), and the Nasdaq 100 E-Mini fell 107.25 points (0.72 points). %). did.

Earnings season begins this week, with JPMorgan Chase & Co reporting Wednesday, followed by Bank of America Corporation, Morgan Stanley, Citigroup Inc. on Thursday and Goldman Sachs Group Inc. on Friday.

Analysts expect third-quarter S&P 500 companies’ profits to rise 29.6% from 96.3% in the second quarter, according to IBES data from Refinitiv on Friday.

Although all major Wall Street indices closed last week, investors still expect the Federal Reserve Board to begin reducing asset purchases later this year.

Investors can confirm this week’s inflation and retail sales, as well as November’s decline, showed weaker employment growth than September’s expectations after last week’s data, I’ve been paying attention to the minutes.

Southwest Airlines fell 1.9% on Sunday, with reports reporting cancellations of at least 30% of its scheduled flights.

(Reporting by Shreyashi Sanyal and Devik Jain in Bengaluru, edited by Arun Koyur)

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