On Tuesday, US stock index futures received a boost, thanks to leisure and travel stocks that were trading higher after the quarantine requirements were relaxed by China for international travelers. This fueled hopes of a global growth revival that sent the futures up.
Premarket trading gainers
In premarket trading, the biggest gains were recorded in hotels, casinos, cruises, and airlines, after China removed the quarantine requirements for inbound travelers, boosting hopes of an increase in spending and international travel.
There was a 2.5% gain recorded in Walt Disney Inc. shares, as they hit the top of Dow Jones Industrial Average list. This came after the Shanghai Disney Resort announced that it would be opening on June 30th, after having been shut down for three months. The biggest gainers in the airline sector were Spirit Airlines, which rose by 4%, and American Airlines Group Inc., which recorded a 2% gain.
There was also a 10% rise in Melco Resorts, which resulted in a boost for the casino sector. Other resorts that also experienced boosts included Wynn Resorts and MGM Resorts International.
Investors turned toward data
The main indexes on Wall Street had started the week on a soft footing after market sentiment was dominated by worries over high inflation and the hawkish Federal Reserve. There are not many market-moving catalysts that will be seen until the earnings session begins, which is in two weeks.
Investors are now focused on data that will help them figure out if the economy is capable enough to withstand the aggressive hike in the interest rates by the US Fed in order to tame inflation. The Conference Board will share the results of a survey at 10 a.m. ET, which is expected to show that there was a decline in the consumer confidence index from 106.4 in May to 100.4 in June.
The Nasdaq and S&P 500 are both on course to post losses for the month and will also log declines in two consecutive quarters for the first time after 2015.
Individual performance
There was a 0.56% increase in Dow e-minis, as they climbed by 175 points, while a 0.51% or 20 points increase was recorded in S&P 500 e-minis. As for the Nasdaq e-minis, they reported a gain of 0.43%, or 52.25 points.
There was a 2.8% drop in Nike Inc., as the company’s forecast for its revenue in the first quarter was below estimates. This was because of additional discounts and disruptions due to the pandemic in China, which is its most profitable market.
A 3.1% gain was recorded in Occidental Petroleum Corp after Warren Buffett, its top investor decided to raise his stake in the shale producer. There was also a rise in China ADRs after COVID curbs were eased in the country. Gains were seen in e-commerce companies between 1.2% and 1.4%, including names like JD.com, Pinduoduo and Alibaba.com. Things might reverse if further curbs are implemented in the case of rising cases.