Stock

Market Snapshot: Wall Avenue heads for extra features as bond sell-off takes a breather

US stock index futures rose on Wednesday as the sell-off in bonds eased ahead of the latest inflation report due Thursday and investors absorbed another batch of earnings reports.

How are stock index futures traded?

S&P 500 futures
ES00,
+0.85%
rose 0.8% to 4,547

Dow Jones Industrial Average Futures
YM00,
+0.61%
rose 0.5% or 180 points to 35,532

Nasdaq 100 futures
NQ00,
+1.20%
increased by 1.1% to 14,897

Tuesday's action saw the Dow Industrials
djia,
+1.06%
climbed 371.65 points, or 1.1%, to close at 35,462.78, its best daily gain since January 31. The S&P 500
SPX,
+0.84%
up 0.8% to end at 4,521.54, the best day since February 2. The Nasdaq Composite
comp,
+1.28%
rose 1.3% to 14,194.45.

Read: Google's parent company's stock split could spark a wave, Bank of America analysts say

And: This fund was sold off by the parent company of Facebook and PayPal before their earnings disaster. Here's what it bought instead.

What moves the markets?

Investors got a breather from a recent sell-off in bonds on Wednesday. The yield of the treasury note
TMUBMUSD10J,
1.929%
was last down 3 basis points to 1.922% after hitting 1.954% on Tuesday, its highest since 2019.

But investors are still eyeing the key 2% level in the 10-year, especially as key inflation data emerges for Thursday. Annual consumer price inflation is expected to rise to 7.2% in January after hitting a 40-year high of 7% in December.

Read: 'This isn't 1980': What investors expect to be the next US inflation

"The improved sentiment stems from more optimism about the reopening, while the Fed's dovish expectations and rising yields remain a serious threat to actual earnings as the key triggers behind the recent bond sell-off are still at play," Ipek Ozkardeskaya said , Senior Analyst at Swissquote, in a note to clients.

"This means there is a high risk of a sudden shift in sentiment ahead of Thursday's US inflation data," she said.

Additional earnings will be shared Wednesday with The Walt Disney Co.
DIS,
-0.02%
and MGM Resorts International
mgm,
+3.49%
and ridesharing operator Uber Technologies Inc.
OVER,
+2.13%
in the spotlight after the market close, and

Read: After the 'baptism of fire', the Disney CEO is looking for a recovery

Which stocks are in focus?

shares of Chipotle Mexican Grill Inc.
cmg,
+0.51%
Soared 6% in premarket trading after the fast-food chain more than doubled earnings to a record high in 2021 and spoke of plans for expansion.

CVS Health Corp.
Resume,
+1.30%
The stock rose 6% after the health care and drugstore operator's profit and earnings beat expectations, despite a mixed outlook for the full year.

Mandiant Inc.
MNDT,
+17.86%
Shares surged more than 2% after the cybersecurity software and services company reported unexpected results. Shares rose during Tuesday's regular session after a report that Microsoft Corp.
MSFT,
+1.20%
was in talks to buy the company.

Lyft Inc.
LYFT,
+5.37%
Shares fell 3% after the ride-sharing operator met its target of positive Ebitda for the full year and spoke of a "solid" fourth quarter but offered a cautious guidance.

How are other assets traded?

The ICE US Dollar Index
DXY,
-0.21%,
a measure of the currency against a basket of six major peers, fell 0.2%.

West Texas Intermediate crude for March delivery
CL.1,
-0.40%

CLH22,
-0.40%
fell 0.5% to $88.90 a barrel. Gold futures for delivery in April
gc00,
+0.01%

GCJ22,
+0.01%
remained flat at $1,827.60 near Tuesday's close, which was the highest most active contract settlement since Jan. 26, FactSet data showed.

Bitcoin
BTCUSD,
-0.84%
fell by 0.3%

The Stoxx 600 Europe
SXXP,
+1.59%
rose 1.5% during the FTSE 100
UKX,
+0.74%
up 0.5%.

The Shanghai Association
SHCOMP,
+0.79%
rose 0.7% while the Hang Seng Index
HSI00,
-0.54%
rose 2% and Japan's Nikkei 225
Nick,
+1.08%
1% up.

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