Salem Radio Network News Tuesday, November 30, 2021

Business

Nasdaq futures at record high as economic concerns drive tech demand

By Ambar Warrick and Devik Jain

(Reuters) – Nasdaq index futures hit a record high on Friday as investors sought economically stable sectors after a small delay in voting on President Joe Biden’s $1.75 trillion spending bill, while rising COVID-19 cases in Europe also dented sentiment.

S&P and Dow futures fell tracking losses in banks, airlines, and other economically sensitive sectors. Uncertainty over rising inflation and the Federal Reserve’s tightening also kept demand for value stocks low.

The U.S. House of Representatives early on Friday delayed an anticipated vote on passage of Biden’s social programs and climate change investment bill, and will instead reconvene at 8 a.m. EST (1300 GMT) to complete the legislation.

In Europe, rising COVID-19 cases saw Austria outline plans for a full lockdown, while Germany could follow suit amid a new wave of infections.

Shares of Alphabet Inc, Amazon.com and Microsoft Corp – stocks which have largely persevered through economic shocks since 2020, rose between 0.3% and 0.5% in premarket trade.

Chipmaker Nvidia also boosted Nasdaq futures, rising 1.7% in heavy trade after posting strong quarterly results late Wednesday.

On the other hand, carriers Delta Air Lines, United Airlines and American Airlines, and cruiseliners Norwegian Cruise Line and Carnival Corp fell between 1.4% and 2.3%.

Oil firms Exxon Mobil and Chevron Corp slipped 2.1% and 1.8% as crude prices sank, while big banks including JPMorgan Chase & Co and Bank of America were down between 0.9% and 1.1%, tracking a fall in U.S. Treasury yields. [O/R][US/]

At 6:26 a.m. ET, Dow e-minis were down 145 points, or 0.4%. S&P 500 e-minis were down 5.75 points, or 0.12% and Nasdaq 100 e-minis were up 68 points, or 0.41%.

The S&P 500 and the Nasdaq eked out record highs on Thursday following strong technology and retail earnings. Both indexes were headed for mild weekly gains, while the Dow Jones was set for a second straight week of losses.

Among major premarket movers, Intuit Inc jumped 10.3% as brokerages raised their price targets on the income tax software company after it beat quarterly estimates and raised forecast. The stock was the top S&P 500 gainer in premarket trade.

Applied Materials Inc dropped 5.7% after the chipmaker forecast first-quarter sales and profit below market estimates on supply chain woes.

(Reporting by Ambar Warrick in Bengaluru; Editing by Maju Samuel)

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