Futures down on Evergrande troubles; Tesla rises after record deliveries
Mon Oct 04 2021
Lucy Harlow (3846 articles)

Futures down on Evergrande troubles; Tesla rises after record deliveries

U.S. stock index futures ticked lower on Monday, drawing from weakening sentiment in Asia and Europe on worries about property developer China Evergrande, while Tesla shares rose after reporting a record number of electric vehicle deliveries.

Investors also kept close watch on rising U.S. Treasury yields after data last week showed increased consumer spending, accelerated factory activity and elevated inflation growth, which could help push the Federal Reserve towards tightening its accommodative monetary policy sooner than expected.

Wall Street’s main indexes were battered in September, hit by worries about the U.S. debt ceiling, the fate of a massive infrastructure spending bill and the meltdown of heavily indebted China Evergrande Group (3333.HK).

Trading in shares of debt-laden Evergrande were halted on Monday, unsettling markets further about any fallout from its troubles even as media reports said the company would sell a stake in its property management unit for over $5 billion. read more

Markets also awaited U.S. President Joe Biden’s new plan on China trade strategy, with U.S. Trade Representative Katherine Tai set for new talks with Beijing later in the day over its failure to keep promises made in a “Phase 1” trade deal struck with former President Donald Trump. read more

At 6:49 a.m. ET, Dow e-minis were down 114 points, or 0.33%, S&P 500 e-minis were down 16.25 points, or 0.37%, and Nasdaq 100 e-minis were down 73.75 points, or 0.5%.

In company news, Tesla Inc (TSLA.O) rose 2.8% in premarket trading after it had delivered a record electric cars in the third quarter, beating Wall Street estimates on Saturday. read more

Merck & Co (MRK.N) gained 3.1% after developing an experimental antiviral pill that could halve the chances of dying or being hospitalized for those most at risk of contracting severe COVID-19. read more

Shares in 3M Co (MMM.N) fell 1.5% after J.P. Morgan cut its rating on the industrial conglomerate’s stock to “neutral” from “overweight”.

Lucy Harlow

Lucy Harlow

Lucy Harlow is a senior Correspondent who has been reporting about Commodities, Currencies, Bonds etc across the globe for last 10 years. She reports from New York and tracks daily movement of various indices across the Globe