U.S. equity futures were flat early Thursday, hours before the opening bell after investors showed a strong IPO appetite on Wednesday for DoorDash and the compromise stimulus package was rejected by investors. Republicans in Congress.
|IS: DJI||MEDIUM DOW JONES||30068,81||-105,07||-0,35%|
|I: COMP||INDEX COMPOSITE NASDAQ||12338.95337||-243,82||-1,94%|
On Wednesday, the S&P 500 Index fell 0.8% to 3,672.82 as losses at tech companies outpaced gains in industrials, energy and materials. The core index is still up 1.4% for the month after hitting record highs four times in the past two weeks.
The Dow Jones Industrial Average lost 0.4% to 30,068.81. The high-tech Nasdaq composite fell 1.9% to 12,338.95.
HIGH RECORD STOCK RETIREMENT AS DOORDASH IPO BOOMS
The Russell 200 index of small business stocks was down 0.8% to 1,902.15. Smaller company stocks have outpaced the overall market this month and the Russell 2000 is holding a 4.5% lead.
Investors still have an appetite for IPOs, as the DoorDash meal delivery service climbed 85.8% when it debuted in the market. The business has been one of the beneficiaries of the home economy as more and more people buy and order food from homes.
Further economic damage could be expected over the next few months and investors are still watching Washington closely for any development on another boost for people, businesses and state governments. Congress is still divided on the size and scope of any new package, and the Trump administration has added to potential plans with a new $ 916 billion proposal.
The 10-year Treasury yield was at 0.93%, just below its level of 0.94% on Wednesday night.
Meanwhile, shares were mostly down Thursday in Asia after weakness in shares of technology and health services companies caused an overnight decline on Wall Street.
THE STOCK LEVELS RECORDED INCREASE THE CONCERNS OF “GROUPTHINK”
The benchmarks fell in Tokyo, Hong Kong and Sydney, but edged up in Shanghai.
As the coronavirus vaccines move closer to distribution, markets have pushed higher in hopes the pandemic will begin to ease, allowing economies to rebound.
A vaccine from Pfizer and its German partner BioNTech, which is already in use in the UK, is on track for positive review and potential approval in the US in the next week. The Food and Drug Administration will also review a vaccine developed by Moderna later this month.
The recent surge in coronavirus cases and the tighter restrictions on businesses in recent weeks have again increased the importance of a vaccine for battered businesses.
The deployment of vaccines in Asia has been even slower. In many countries, epidemics have increased and decreased as governments seek a balance between pandemic precautions and economic demand.
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The Shanghai Composite Index added 0.2% to 3,377.86. Hong Kong’s Hang Seng index slipped 0.5% to 26,359.06 and Tokyo’s Nikkei 225 index fell 0.2% to 26,756.24. In South Korea, the Kospi index fell 0.1% to 2,752.46.
Australia’s S & P / ASX 200 fell 0.7% to 6,683.10 after the Chinese government announced additional import taxes on Australian wines, stepping up pressure on its government amid conflict bitter diplomatic campaign on coronavirus, territorial disputes and other irritants.
China’s Ministry of Commerce said an investigation has found Australia is unduly subsidizing wine exports, hurting Chinese producers. It imposed a compensation tax of 6.3% to 6.4%. China, Australia’s largest export market, has already effectively blocked imports of Australian wine by imposing taxes of over 200%. Beijing has also blocked imports of beef, wheat and other Australian products since the Australian government expressed support for an independent investigation into the origins of the coronavirus.
In other trades, US benchmark crude oil gained 26 cents to $ 45.78 per barrel on electronic trading on the New York Mercantile Exchange. It lost 8 cents to $ 45.52 a barrel on Wednesday.
Brent crude, the international standard, added 24 cents to $ 49.11 a barrel.
The dollar strengthened to 104.43 Japanese yen from 104.24 yen on Wednesday night. The euro rose to $ 1.2096 from $ 1.2083.