Stock Index Futures Are Lopsided Due To The Current U.S-China Tensions
U.S stock futures again suffered from slipping on rising Wednesday early trading, all because of the U.S-China tensions and amidst the scope of major technology earnings from Microsoft and Tesla after the closing bell. European stocked crumbled as well after a sudden diplomatic bust-up between the two headstrong countries.
The matrix of U.S stock is under pressure as Dow Jones Industrial Average futures dragged down 58 points, or 0.2%. S&P 500 futures dipped 0.2% while Nasdaq 100 futures gained 0.2%.
With the abrupt decision from the United States Department to seize Chinese consulate in Houston, futures made extra losses in premarket trading. Foreign ministry spokesperson Wang Wenbin castigated such a decision and warned about taking measures if the U.S Government doesn’t dump the decision and stop it immediately.
On the other hand, Pfizer shares are rising, and currently, it’s inflated more than 3% after the government suggested to allow the company to make millions of COVID-19 vaccine doses as soon as possible.
Snap shares were lowered by more than 9% in extended trading. Its shares are fluctuating since the big social media company observed the number of users has drastically gone down.
United Airlines could not secure its shares from dropping in extended trading after the company revealed the massive loss of $1.62 billion for the second quarter. The pandemic has hamstrung the travel industry and the airlines are suffering the hardest. Its impact is so huge that it has declined 87% year-over-year revenue for one of the biggest airlines.
Quarterly earnings have started on Wednesday with gathered reports from Microsoft, Tesla, Chipotle Mexican Grill, CSX, and Las Vegas Sands after the closing bell. Every investor is tensed about Tesla’s earnings.
The Dow Jones Industrial Average improved with more than 150 points and then rose to 300 points on Tuesday. Chevron and Exxon Mobil gained 7% and 5%, respectively.
Facebook, Amazon Apple, Netflix, and Google-parent Alphabet had lower earnings and that led to Nasdaq Composite shares dropping 0.8%.
Jim Paulsen, chief investment strategist at the Leuthold Group said, “A major leadership shift dominated the day,” in a recent interview with CNBC. He continued to explain such share drops and said, “Old leadership led by Large-cap technology gave way to strong upside moves in the broader market including most cyclical sectors.”
Fortunately, Coca-Cola and IBM earnings are living up to the expectations. Coca-Cola saw a rise of more than 2%.
Glenda Bozeman – Business and Services
Glenda Bozeman writes Business articles for industries that want to see their Google search rankings surge. Her articles have appeared in a number of sites. Her articles focus on enlightening with informative Services sector needs. She holds the degree of Masters in Business and Marketing. Before she started writing, she experimented with various professions: computer programming, assistant marker, and others. But her favorite job is writing that she is now doing full-time.
