Stocks look set for a steady open as investors await key economic data out later this week.
“A sense of trader paralysis grips global markets ahead of key catalysts due in the back half of the week,” writes Tom Essaye, founder of Sevens Report Research.
Investors are in wait-and-see mode ahead of the latest data on employment and inflation. Jobless claims and the core consumer-price index will be released on Thursday. Higher inflation has prompted the Federal Reserve to ponder making decisions that would lift bond yields. Some think if the Fed soon reduces the size of its bond purchasing program, which keeps bond prices high and yields low, stocks could fall more than 15%.
But the 10-year Treasury yield dipped below 1.5% on Wednesday morning, giving a boost to the technology-heavy Nasdaq. Lower yields on long-dated bonds boost the value of future cash flows and many tech companies—relying on long-term industry growth trends—are expecting profit growth well into the future. The yield is down from 1.7% on May 12, and the Nasdaq is up more than 6% since then.
Here are five stocks making moves in Wednesday’s premarket action:
ContextLogic (ticker: WISH) stock spiked 33%, as it seems the stock has gotten caught up in the “meme stock” frenzy.
Colgate-Palmolive Co. (CL) stock gained 1% after getting upgraded to Outperform from Neutral at Credit Suisse.
Chemours (CC) stock rose 3% after getting upgraded to Buy from Neutral at Goldman Sachs.
Abercrombie & Fitch (ANF) stock gained 3% after getting upgraded to Buy from Hold at Jefferies.
Wendy’s (WEN) stock dropped 0.5% after getting downgraded to Hold from Buy at Stifel.
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