The Dow, S&P 500 and Nasdaq set new records after June payrolls beat estimates

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Stock futures drifted sideways on Tuesday to hold near record levels as traders prepared to return to a relatively bullish session after a US holiday weekend

S&P 500, Dow and Nasdaq contracts followed the flat line. Each of the major indexes hit new highs on Friday, propelled by a June jobs report that reflected a healthy pace of recovery in the labor market but did not suggest an overheating economy.

Oil prices soared amid a breakdown in talks among OPEC + members earlier this week, with Saudi Arabia and the United Arab Emirates at a stalemate over production cuts. The meeting, which began with a tentative deal to ramp up production given the high energy demand during the resumption of the pandemic era, ultimately resulted in no decision, pushing up prices for U.S. crude and Brent. A Reuters report that the main oil exporter Saudi Arabia raised its August official selling prices (OSP) for Asia has compounded the rise in commodities.

“As negotiations continue, we believe that most of the results (1) will still imply higher prices in the coming months as the physical market tightens, (2) with higher OPEC + production than the group discussed. needed by the global oil market next year, ”Goldman Sachs analyst Damien Courvalin wrote in a note Tuesday. “Price volatility is likely to increase.”

West Texas Intermediate Crude Oil Futures (CL = F) hit $ 76.98, the highest level since mid-2014. Brent crude, the international benchmark (BZ = F) hovered at a two-year high of nearly $ 78 a barrel.

Equity investors will eagerly await the release of the minutes of the Federal Open Market Committee’s June meeting, which will help reveal central bankers’ thoughts on adjusting monetary policy as the economic recovery matures. The June meeting marked a notable change in the Fed’s outlook, with the central bank signaling up to two rate hikes by 2023. later, to reduce the Fed’s asset purchase program in period crisis.

Next week, more catalysts will come at the start of the second quarter earnings season. As has been the case in recent quarters, Wall Street has adopted a bullish tone as earnings season approaches, especially as vaccinations and business reopenings have resumed in recent months. The consensus on the street is that the S&P 500’s second-quarter earnings will grow 63.6% overall year-on-year, according to FactSet. This would be the highest profit growth rate since the fourth quarter of 2009.

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8:26 a.m. ET: Didi Global shares collapse after Chinese regulators crack down on ridesharing app

Shares of Didi Global (DIDI) plunged more than 19% on Tuesday morning after Chinese regulators demanded that Didi’s ridesharing app be removed from the country’s mobile app stores.

This decision, which came from the Cyberspace Administration of China, came following an investigation into Didi’s data handling practices. The announcement also came just days after Didi’s initial public offering of $ 4.4 billion on the New York Stock Exchange, as part of the largest IPO of a Chinese company in the United States. since Alibaba’s (BABA) debut in 2014.

Shares of other Chinese companies listed in the United States, including Full Truck Alliance (YMM) and Nio (NIO), also fell, with the specter of an even tougher crackdown from Chinese regulators in the wake of the their decision on Didi. Didi, like other Chinese tech giants Alibaba, has come under close scrutiny by the Chinese government in recent months, and noted in his out-to-be-released prospectus that he had met with China’s regulators. Chinese market several months ago.

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7:16 a.m. ET Tuesday: Stock futures gain as investors wait for jobs report

Here’s where the markets were trading ahead of the opening bell Tuesday morning:

  • S&P 500 Futures Contracts (ES = F): 4,340.00, -2.75 points (-0.06%)

  • Dow Futures (YM = F): 34,644.00, -33 points (-0.1%)

  • Nasdaq Futures Contracts (NQ = F): 14,727.00, +13.25 points (+ 0.09%)

  • Gross (CL = F): + $ 1.08 (+ 1.44%) to $ 76.24 per barrel

  • Gold (CG = F): + $ 25.00 (+ 1.4%) to $ 1,808.30 per ounce

  • 10-year cash flow (^ TNX): -0.8 bps for a yield of 1.427%

NEW YORK, NY - JUNE 02: Exterior view of the New York Stock Exchange and Wall St. as a new Organon company to begin trading next Thursday in New York City on June 02, 2021. Organon is looking to expand to provide treatment for other conditions unique to women, around 80% of the new company's income will come from outside the United States (Photo by Kena Betancur / VIEWpress)

NEW YORK, NY – JUNE 02: Exterior view of the New York Stock Exchange and Wall St. as a new Organon company start trading next Thursday in New York on June 02, 2021. Organon is looking to expand to provide treatment for other conditions unique to women, around 80% of the new company’s income will come from outside the United States (Photo by Kena Betancur / VIEWpress)

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck



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