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Stock futures have changed little after tech stocks continue to sell

Traders work on the floor of the New York Stock Exchange (NYSE) on November 15, 2021 in New York City.

Spencer Platt | Getty Images

U.S. equity futures were little changed on Tuesday night after tech stocks sold for the second day in a row, under pressure from rising rates that boosted energy and financial stocks.

Futures contracts on the Dow Jones Industrial Average fell 0.02%. S&P 500 and Nasdaq 100 futures fell about 0.05%.

Retail stocks were hit by prolonged trading after quarterly results. Nordstrom fell about 22% and Gap fell more than 15%. Both companies reported missed revenue for the most recent quarter.

Shares of computer hardware company HP were up 7% against company profits which beat both upper and lower results and higher earnings expectations in the first quarter.

In regular trading, however, most tech stocks were in the red. The Nasdaq Composite lost 0.50% in Tuesday’s session, while the S&P 500 added 0.17% and banking and energy stocks helped push the Dow Jones Industrial Average up 194 points.

The divergence in sectors has moved in tandem with Treasury yields, which tend to push bank stocks up and crush tech and other high-growth companies. Yields have risen since President Joe Biden appointed Jerome Powell on Monday as Federal Reserve Chairman.

“It’s definitely a story of increased turnover,” said Rob Haworth, senior investment strategist at US Bank Wealth Management. “The market is now with the re-appointment of Powell, believing it to be a reopening story, which sets aside any risks or concerns we might have regarding rising rates of Covid infection. “

On Friday, just before the announcement of Powell’s re-appointment, investors were spooked by a resurgence of Covid-19 in Europe, which pushed tech stocks higher.

Trading could slow in the next few days due to the Thanksgiving holiday, but investors will be watching a lot of economic data expected on Wednesday, including weekly jobless claims, a GDP update, personal income, consumer confidence, and consumer confidence. Federal Reserve FOMC minutes.

Most companies, but not all, have released their financial results for the third quarter. Deere is due to show up before the bell Wednesday.

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