Advisor Group chief market strategist Phil Blancato, Kaltbaum Capital Management President Gary Kaltbaum, Cresset Capital founding partner Jack Ablin and Hedge Fund Telemetry energy and materials strategist Tracy Shuchart on oil, today’s markets.
U.S. stock futures were under pressure Tuesday as Federal Reserve Chairman Jerome Powell was set to voice concerns on inflation.
Dow Jones Industrial Average futures fell 132 points, or 0.38%, while S&P 500 futures and Nasdaq 100 futures declined 0.78% and 1.48%, respectively.
Powell is set to speak before the Senate Banking Committee and will say inflation is larger and longer lasting than anticipated and that the central bank will raise rates, if necessary.
The selling of U.S. Treasurys continued, with the yield on the 10-year note up 4 basis points to 1.53% and was on track to close at a more than three-month high.
In stocks, financials, which benefit from a steeper yield curve, outperformed.
Meanwhile, mega cap technology stocks, like Apple Inc., Microsoft Inc. and Amazon Inc., lagged as rising yields are a negative for growth names.
Ford Motor Co. and Korean battery partner SK Innovation will invest $11.4 billion to build an electric F-150 assembly plant and three battery plants in the U.S. in an effort to speed up the automaker’s shift to electric vehicles.
Oil companies like Cabot Oil & Gas Corp., Diamondback Energy Inc. and Kinder Morgan Inc. were higher as West Texas Intermediate crude oil jumped 73 cents to $76.18 a barrel.
Overseas markets were mixed.
European bourses were weaker across the board with France’s CAC 30 tumbling 1.77%, Germany’s DAX 40 sliding 1.31% and Britain’s FTSE 100 declining 0.48%.
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In Asia, Japan’s Nikkei 225 slipped 0.19% while China’s Shanghai Composite index and Hong Kong’s Hang Seng index jumped 0.54% and 1.2%, respectively.
