Connect with us

Hi, what are you looking for?


U.S. Futures Mixed; Banks in Focus After Dividend Announcements

Stock Markets11 minutes ago (Jun 29, 2021 07:00AM ET)

(C) Reuters

By Peter Nurse — U.S. stocks are seen opening little changed Tuesday, consolidating around record levels, with the major U.S. banks to the fore after announcing significant dividend increases.

At 7 AM ET (1100 GMT), the Dow futures contract was up 60 points, or 0.2%, S&P 500 futures traded just 1 point higher, while Nasdaq 100 futures dropped 7 points, or 0.1%.

The main indices closed largely higher Monday, with the broad-based S&P 500 advancing 0.2%, its third consecutive record close, and the tech-heavy Nasdaq Composite gaining nearly 1%, also a new high. The blue-chip Dow Jones Industrial Average, however, dipped 0.4%.

Trading ranges are expected to be limited this week as investors warily await Friday’s monthly jobs report. This is expected to show that the economy added 675,000 new jobs in June, pushing the unemployment rate down to 5.7% from 5.8%.

“Volatility levels are sinking fast again following a brief hiatus around the FOMC meeting,” said analysts at ING, in a note. “The recent FOMC meeting suggests the Fed’s trigger-finger will be a little twitchier when it comes to tapering, but unless the NFP figure comes in close to the one million mark, financial markets will probably be set fair for a low volatility summer.”

In corporate news, Facebook (NASDAQ:FB) joined the $1 trillion market capitalization club on Monday after a Federal antitrust court case against the social media giant was dismissed.

However, it’s the banking sector which is likely to be in the spotlight Tuesday, after most of the senior U.S. lenders announced plans to pay an additional $2 billion in dividends in the wake of the Fed’s stress tests results. Citigroup (NYSE:C) bucked the trend, by not raising its payout to shareholders – at least not yet.

United Airlines (NASDAQ:UAL) on Tuesday unveiled its largest ever order for 270 Boeing (NYSE:BA) and Airbus jets worth more than $30 billion at list prices, a move that was rumored about on Monday.

Economic data centers around the release of the Conference Board’s consumer confidence index at 10 AM ET, which is expected to rise to 119 after declining to 117.2 in May.

Crude oil prices weakened Tuesday, with the growth of Covid cases, mainly in the U.K. but also a number of Asian countries, caused by the highly infectious delta strain weighing on sentiment.

By 6:30 AM ET, U.S. crude was down 0.4% at $72.60 a barrel, while Brent was down 0.2% at $74.05, after reaching levels not seen since 2018 during last week’s trading.

There was also an element of traders taking some money off the table ahead of Thursday’s meeting of the Organization of Petroleum Exporting Countries and its allies, a group known as OPEC+.

Estimates of weekly U.S. crude oil inventory data by the American Petroleum Institute are due later in the day.

U.S. Futures Mixed; Banks in Focus After Dividend Announcements

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like


Stock Markets25 minutes ago (Jul 16, 2021 05:46PM ET) (C) Reuters. FILE PHOTO: Johnson & Johnson’s Neutrogena Cool Dry Sport sunscreen, which is part...


Builders, creators and developers, this one’s for you! TechCrunch has always been about discovering fresh solutions and shining the light on exciting, new products...

Disclaimer: it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Wise Gazette. All Rights Reserved