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Stocks slide and markets on edge ahead of speech by Fed chair Powell – Treasury yields rise – Oil prices move higher – Dell to cut 6650 jobs amid weakening computer demand
US stock futures fell on Monday morning as investors remain on edge ahead of an important speech on Tuesday by Federal Reserve Chairman Jerome Powell at the Economic Club of Washington. It’s anticipated he will deliver further insight on the Fed’s future moves against inflation, CNBC reported.
Dow Jones industrial average futures were down 161 points or -0.47%, while S&P 500 futures were down 26.5 points or -0.64%, and NASDAQ futures were down 104.75 points or -0.83%, Yahoo reported.
Stocks making the biggest moves in premarket trading on Monday were Tyson Foods dropped 6%, PayPal fell by 2.6%, T-Mobile dipped more than 2%, Lyft shares fell about 2%, and battery maker Energizer Holdings fell 6% after missing revenue and earnings expectations. On the other hand, Dell technologies gained nearly 1% and Spotify rose more than 1%, CNBC reported.
Investors are awaiting key earnings from S&P 500 companies this week, including Disney, Chipotle, DuPont, and PepsiCo. According to analytics firm Refinitiv, about halfway through earnings season, profits for S&P 500 companies are on pace to be 2.7% lower for the fourth quarter, CNBC reported.
US treasuries advanced on Monday as investors await remarks by Federal Reserve Chairman Jerome Powell this week, as well as a series of data releases, CNBC reported.
The US 10-Year Treasury was up +0.093 to yield 3.625%, while the 2-Year Treasury rose +0.119 to yield 4.422% as of 8:45 AM EST.
Oil futures were up on Monday, with WTI crude up +1.20% and trading at $74.27 a barrel, while Brent crude was up +1.49% and trading at $81.13 per barrel as of 8:37 AM ET.
Other factors affecting oil are The International Energy Agency (IEA) viewing China as a driver of demand for at least half the global supply, while an earthquake halted Turkey’s oil terminal operations, and interest rates are still expected to check gains, Reuters reported. Investors are also concerned that slower growth in major economies may limit fuel use.
Dell Technologies Inc. announced it will eliminate roughly 6,650 jobs amid a drop in demand for the company’s personal computers. The staff reduction represents about 5% of Dell’s global workforce, FOXBusiness reported. The staff reductions became necessary because previous cost-cutting initiatives, which included a pause on hiring and limits on travel, were no longer sufficient, according to Dell’s co-Chief Operating Officer Jeff Clarke.
