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Futures Movers: Stock futures steady as investors get ready to test records, brace for aftermath of Hurricane Ida

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U.S. stock futures inched higher Monday morning, with major indexes set to hold on to records set late last week after a message from Federal Reserve Chairman Jerome Powell at the Jackson Hole symposium that has been interpreted as dovish.

Energy prices meanwhile, were in focus, as officials begin to tally up damages from one of the strongest hurricanes to ever hit the U.S.

How are markets trading?
  • Dow Jones Industrial Average futures
    YM00,
    +0.08%

    were barely higher, up 18 points, at 35,422.
  • S&P 500 futures
    ES00,
    +0.14%

    were climbing 0.1% higher, or 6.15 points, at 4,508.25.
  • Nasdaq-100 futures
    NQ00,
    +0.13%

    rose 22.50 points, or 0.1%, to 15,449.

On Friday, the Dow Jones Industrial Average 
DJIA,
+0.69%

 rose 242.68 points, or 0.7%, to 35,455.80, the S&P 500
SPX,
+0.88%

advanced 39.37 points, or 0.9%, to a record 4,509.37, and the Nasdaq Composite Index
COMP,
+1.23%

jumped 183.69 points, or 1.2%, to a record 15,129.50. The small-capitalization Russell 2000 index
RUT,
+2.85%

climbed 63.17 points, or 2.9%, to 2,277.15.

What’s moving the markets?

In a closely watched speech on Friday, Fed Chairman Powell said he was in favor of tapering the Fed’s monthly purchases of $80 billion of Treasurys and $40 billion of mortgage-backed securities beginning this year, but remained vague about the timetable. He also said there several factors indicated higher inflation will be temporary.

“The main takeaway was that Powell is not in a rush to dial back asset purchases, with investors reading his vagueness as diminishing the chances of a September announcement,” said Marios Hadjikyriacos, senior investment analyst at XM, in a note to clients.

“Hopes that markets will stay flush in central bank liquidity for a while longer catapulted stocks on Wall Street to record highs and hammered the dollar lower alongside Treasury yields, putting the shine back into gold,” he said.

The yield on the 10-year Treasury note
TMUBMUSD10Y,
1.305%

was easing back on Monday, down 1 basis point to 1.30%, though it rose 5.2 basis points last week, the biggest one-week gain since June 25. Gold
GC00,
-0.16%
,
meanwhile, was flat at around $1,818.20 an ounce.

Investors will get important economic data this week, including the August jobs report on Friday. On Monday, investors are awaiting a report on pending home sales at 10 a.m. Eastern Time and a report on Dallas Fed Manufacturing Survey, which will be released at 10:30 a.m.

Read: Delta might stunt U.S. job creation in August, but not enough to derail economy

Commodities were in focus after Hurricane Ida ripped through Louisiana and was moving into Mississippi, leaving destruction in its wake and at least one death. Winds clocked at 150 miles an hour tied it for the fifth-strongest hurricane to ever hit the U.S., while all of New Orleans was without power.

Crude-oil
CL00,
-0.01%

CLV21,
-0.01%

prices rose 0.1% to $68.80 a barrel, while gasoline futures
RBU21,
+2.21%

climbed 1.8% to $2.158 a gallon. Nearly 95% of U.S. oil and gas production in the Gulf Coast region was offline, according to S&P Global Platts.

Which companies are in focus?
  • Shares of Li Auto Inc. LI rallied 2.9% in premarket trading Monday, after the China-based electric vehicle maker reported a surprise second-quarter loss but revenue that beat expectations as deliveries nearly tripled and provided an upbeat outlook.
  • Catalent Inc. CTLT said Monday it has reached an agreement to acquire Bettera Holdings LLC, a maker of gummy, soft chew and lozenges as nutritional supplements, from Highlander Partners LP for $1 billion in cash.
  • Shares of Ideanomics IncIDEX shot up in premarket trading Monday, after the electric vehicle adoption facilitator and financial services company announced a deal to buy electric commercial vehicle company VIA Motors International Inc. in a stock deal valuing VIA at $450 million.
  • Specialty chemicals company H.B. Fuller FUL said Monday it is planning to implement an 11% surcharge on global shipments of its products starting Sept. 1, as it moves to combat rising costs of chemical feedstocks and plastic and metal packaging. 
  • Adtran Inc. ADTN announced Monday an agreement to acquire networking services company ADVA in a deal valued at EUR789 million ($931.1 million).
  • PNC Financial Services Group IncPNC said Monday it will raise its minimum wage to $18 an hour, starting Nov. 22, about three years after it raised it to $15 an hour.

Futures Movers: Hurricane Ida sends gasoline prices jumping as it knocks refineries offline

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