Stock futures rise slightly after Wall Street posts slight decline
26 May 2021
The New York Stock Exchange welcomes Lightning eMotors (NYSE: ZEV), on May 24, 2021, in celebration of its transition to a public company.
Stock futures ticked marginally higher in early morning trading after the market rally stalled Tuesday, with major indexes ending the regular session slightly lower.
Futures on the Dow Jones Industrial Average rose 91 points. S&P 500 and Nasdaq-100 futures traded in mildly positive territory.
Nordstrom shares dropped about 6% in extended trading after the company missed the Street’s first-quarter earnings expectations, while shares of Urban Outfitters jumped more than 7% following better-than-expected quarterly results after the bell.
The market struggled to find direction Tuesday. Stocks edged higher early in the session, but ultimately closed lower. The S&P 500 dipped 0.2% as the energy sector lagged. The Nasdaq Composite closed flat while the Dow Jones Industrial Average dipped 81.52 points, or 0.2%.
Airline, cruise line and homebuilder stocks outperformed. United Airlines jumped 1.5% after the carrier said domestic leisure fairs topped 2019 levels this month amid the reopening. Royal Caribbean and Norwegian Cruise Line shares each rose about 3.6%. NVR shares jumped about 4%.
The strong performance from reopening stocks suggests “investors are also leaning into the normalcy,” Goldman Sachs managing director Chris Hussey wrote in a note. “The news on the recovery remains very encouraging in the US. And it’s interesting to see that some stocks may have still not fully priced it in.”
“Low volatility, flat equities, declining US Treasury yields, and low trading volumes — feels a lot like a Tuesday during a pre-holiday week. In other words, this feels…normal,” Hussey said.
Investors are awaiting a speech from Federal Reserve Vice Chair Randal Quarles on Wednesday as concerns surrounding inflation and potential tapering continue.
Chief executives of the country’s largest banks — including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley — are set to testify before the Senate Banking Committee on Wednesday morning.
— CNBC’s Michael Bloom contributed reporting.