Stock futures rose slightly on Tuesday morning as Wall Street looked to build on a modest rebound ahead of another rate hike from the Federal Reserve.
Futures tied to the Dow Jones Industrial Average inched up 61 points, or 0.2%. S&P 500 futures added 0.22%, and those for the Nasdaq 100 rose 0.27%.
The Federal Open Markets Committee kicks off its September meeting on Tuesday, and the central bankers are expected to announce a 0.75 percentage point rate hike on Wednesday. Stocks have tumbled in recent weeks as comments from Fed Chair Jerome Powell and an unexpectedly hot August consumer price index report caused traders to prepare for even higher rates until inflation cools.
“I think last week a lot of the work was done to reset interest rate expectations,” said Angelo Kourkafas, investment strategist at Edward Jones.
“The momentum in equity markets is to the downside. … Until we establish that pattern of lower [inflation] readings, it’s going to be hard to reverse that elevated uncertainty and volatility that we are seeing,” Kourkafas added.
During a choppy trading session on Monday, stocks rose in the afternoon to snap a two-day losing streak and claw back some of their recent losses. The Dow rose 197 points, or about 0.6%. The S&P 500 and Nasdaq Composite gained roughly 0.7% and 0.8%, respectively.
However, after the market closed on Monday, Ford announced that supply chain issues would cost the automaker an extra $1 billion in the third quarter. Shares fell 4.5% in extended trading.
On the economic front, investors will get a fresh look at the housing market on Tuesday morning with the August reports for housing starts and building permits.
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— Zavier Ong
Ford under pressure after supply chain warning
Shares of Ford fell more than 4% in extended trading after the automaker warned it would take a $1 billion hit due to supply chain costs for the third quarter.
Ford set that an inability get all the parts it needs could delay delivery for more than 40,000 vehicles to dealerships. The company did say it expects those vehicles to be moved during the fourth quarter and reiterated its full-year guidance for adjusted earnings before interest and taxes.
— Jesse Pound
Stock futures open higher
U.S. stock futures opened modestly higher on Monday evening, suggesting that the late-day rise for equities may carry over into the next session.
Nasdaq 100 futures were the early leaders, but were still up just 0.2%.
— Jesse Pound
Stocks break losing streak on Monday
The three major indexes ended positive today — breaking multi-day losing streaks — as the markets came out of last week’s sell-off.
- SPDR S&P 500 and Invesco QQQ both surpassed their 30-day average volume.
- Approximately three stocks in the New York Stock Exchange advanced for every two that declined.
- Nine of 11 sectors were positive, with materials up the highest at 1.6%. Of those that fell, health care posted the greatest loss going down approximately 0.5%.
- The U.S. two-year, five-year and 10-year Treasury notes all hit highs not seen in more than a decade.
- DJ Transports gained nearly 2%, breaking a four-day losing streak. It was the largest gain of any of the major U.S. indices, which all were positive at the close.
— Alex Harring, Chris Hayes