Markets

Wall Street Futures Capitulate to 10-Year Treasury Note Above 3.05%

US stock futures were struggling to stay positive ahead of Wednesday's opening bell as investors nervously eye the yield on the 2-year and 10-year Treasury notes with renewed geopolitical risks on the Korean peninsula simmering in the background. Dow futures reversed modest overnight gains and are trading slightly lower as Wall Street capitulates to an uptick in the 10-year note above the 3.05% trigger.

Fresh off Tuesday's's sell-off on Wall Street, stock futures cautiously traded higher overseas, propped up by slightly lower Treasury yields. Gains were kept in check, however, by developments in Korea after Pyongyang threatened to withdraw from negotiations with the U.S. and South Korea if military drills proceed, as well as political turmoil in Italy.

Ahead of the US trading open, market participants ignored soft housing market data as April housing starts were down 3.7% from March to a seasonally-adjusted annual rate of 1.287 million, missing expectations for a slight gain to 1.324 million. Permits fell 1.8% to a SAAR of 1.352 million, slightly better than expectations and follows an upward-revised March.

At 9:15 am ET, April industrial production is forecasted to increase 0.6% while capacity utilization is predicted to increase to 78.3 from 78.0 in March.

-Dow Jones Industrial down 0.06%

-S&P 500 futures down 0.06%

-Nasdaq 100 futures down 0.02%

SENTIMENT

Nikkei was down 0.44%

Hang Seng was down 0.13%

Shanghai Composite was down 0.70%

FTSE-100 was up 0.09%

DAX-30 was up 0.27%

PRE-MARKET SECTOR WATCH

(+/-) Large cap tech: Mixed

(+/-) Chip stocks: Mixed

(+/-) Software stocks: Mixed

(+/-) Hardware stocks: Mixed

(+/-) Internet stocks: Mixed

(-) Oil stocks: Lower

(+) Biotech stocks: Higher

(+/-) Drug stocks: Flat

(-) Financial stocks: Lower

(+) Retail stocks: Higher

(+) Industrial stocks: Higher

(+) Airlines: Higher

(+/-) Autos: Flat

UPSIDE MOVERS:

(+) BOOT (+16.09%) Beat Q4 estimates, issued upbeat Q1 EPS guidance

(+) ABAX (+14.84%) Agreed to be acquired by Zoetis ( ZTS ) for $83 per share

(+) CLMT (+10.69%) Reported Q1 loss, sales decline

DOWNSIDE MOVERS:

(-) VSTM (-13.17%) Announced $35 million stock offering

(-) PRPL (-5.84%) Reported wider-than-expected Q1 loss, guides Q2, FY18 below estimate

(-) RYB (-4.93%) Swings to a loss in Q1

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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