Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Stocks - U.S. Futures Rise as Investors Ignore Inverted Yield Curve

Published 2019-03-26, 06:46 a/m
Updated 2019-03-26, 07:15 a/m
© Reuters.

Investing.com - U.S. futures pointed to a higher opening bell on Tuesday, as Apple (NASDAQ:AAPL) reinvention of itself as an entertainment and financial services company distracted investors from concerns over ominous signals from the bond market.

Apple rose 0.8% in premarket trading after closing in the red as it unveiled a movie and television streaming service. The company also introduced a credit card and video game arcade, in an effort to move its revenue mix from being device-heavy to subscription-based as iPhone sales plateau.

Netflix (NASDAQ:NFLX), a company that stands to face increased competition from Apple's new service, shrugged off the news, rising another 0.5% to add to Monday's 1.5% gain.

Dow futures rose 117 points to 0.5% by 6:45 AM ET (10:45 GMT), while S&P 500 futures gained 11 points or 0.4% and tech-heavy Nasdaq 100 futures was up 27 points or 0.4%.

Concerns about the future path of the economy have moderated a little since Friday, when the U.S. Treasury yield curve inverted for the first time since 2007. Three-month bill rates are still marginally higher than 10-year yields, a configuration that has in the past been a reliable advance indicator of a recession. Analysts warn that its predictive power has probably weakened in the wake of the financial crisis, however.

The yield on the benchmark United States 10-Year Treasury note was at 2.44%, after falling as low as 2.39% last Friday. The three-month T-bill rate was at 2.46%.

Overnight, the world's biggest chipmaker Samsung (KS:005930) warned that its first-quarter profit would miss market expectations due to a fall in chip prices.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Still, chipmakers were higher, with Advanced Micro Devices (NASDAQ:AMD) up 1.4% and Micron (NASDAQ:MU) rising 1.1%. Intel (NASDAQ:INTC) and Qualcomm (NASDAQ:QCOM) were also both up a touch.

Elsewhere, Carnival (NYSE:CCL) fell 1.2%, while Thor Industries (NYSE:THO) slumped 1.7%. Tesla (NASDAQ:TSLA) jumped 1.5% after a lawsuit over Tesla Model 3 production claims was dismissed.

In economic news, building permits and housing starts are released at 8:30 AM ET (12:30 GMT), while consumer confidence data is out at 10:00 AM ET (14:00 GMT).

In commodities, gold futures were down 0.7% to $1,320.15 a troy ounce, while crude oil gained 1.2% to $59.54. The U.S. dollar index, which measures the greenback against a basket of six major currencies, slipped 0.1% to 95.998.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.