Dow Futures Sharply Lower as Bond Yields Rise

Stocks appear to be continuing the fall's volatile trading

Deputy Editor
Oct 6, 2021 at 9:14 AM
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Stock futures are pointed lower this morning, with Wall Street unable to build on last night's tech stock rebound. Futures on the Dow Jones Industrial Average (DJI) were last seen down 246 points, Nasdaq-100 Index (NDX) futures are eyeing a triple-digit drop, and S&P 500 Index (SPX) futures sit more modestly in the red. Concerns over inflation and slowing economic growth remain prevalent, sending the 10-year Treasury yield to as high as 1.55% earlier this morning. This month's choppy price action comes even after ADP employment data showed a better-than-expected 568,000 new jobs in September, the biggest gain since June. 

Continue reading for more on today's market, including:

  • A look at the implications of the SPX's pullback, with Schaeffer's Senior Quantitative Analyst Rocky White. 
  • Revisiting Peloton stock after its recent slide. 
  • Plus, STX downgraded; Palantir awarded army contract, and MANU stumbles on share offering.  

Futures 1006

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.4 million call contracts traded on Tuesday, compared to 666,169 put contracts. The single-session equity put/call ratio fell to 0.45, and the 21-day moving average stayed at 0.50.
  2. Morgan Stanley downgraded Seagate Technology Holdings PLC (NASDAQ:STX) to "equal weight" from "overweight," with a price-target cut to $88 from $118. The firm noted less-than-satisfactory industry data, such as rising inventory levels and lower corporate spending plans. In electronic trading, STX is down 3.8%. 
  3. Palantir Technologies Inc (NYSE:PLTR) is up 6.6% in pre-market trading, after announcing an agreement with the U.S. Army. The software company was selected to provide its Gotham platform in an $823 million contract. If these gains hold, PLTR will jump back above its year-to-date breakeven level.
  4. Plummeting ahead of the open this morning, English football club Manchester United PLC (NYSE:MANU) is down 12.3%, after news that the Glazer family is offering up 9.5 million of their shares, slashing their stake from 74.9% to 69%. Coming into today, MANU is up 17.2% year-to-date, having added roughly 14% since the club welcomed star player Cristiano Ronaldo in August. 
  5. There is no other economic data on tap today.

OV Buzz Chart Oct 6

Stocks Lower in Europe, Asia

Asian markets were lower on Wednesday, as investors monitored continually shaky trading in the U.S., and surging oil prices stoked inflation anxieties. Japan’s Nikkei extended its losses with another 1.1% drop, while the Hong Kong Hang Seng lost 0.6%, and the South Korean Kospi dropped 1.8%. China’s Shanghai Composite was still closed for holiday.

The major bourses are also feeling pressure, with inflation fears mounting as investors monitor a spike in the U.S. 10-year Treasury yield. The German DAX is down 1.8%, with the region’s sharper-than-expected drop in industrial orders weighing on the index. Meanwhile, the London FTSE 100 is 1.5% lower, while the French CAC 40 is off 1.9%.

 

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