US pre-open: Futures in the red as bond yields rise, Chinese GDP disappoints
By Iain Gilbert
Date: Monday 18 Oct 2021
(Sharecast News) - Wall Street futures were in the red ahead of the bell on Monday as bond yields headed north and Chinese GDP numbers disappointed.
As of 1225 BST, Dow Jones futures were down 0.25%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.26% and 0.28% weaker, respectively.
The Dow closed 382.20 points higher on Friday thanks to a better than anticipated start to the third-quarter earnings season.
In focus ahead of the bell on Monday, the yield on the benchmark 10-year Treasury note inched back above 1.61% at the start of the week, pressuring tech shares as market participants look to rotate out of growth stocks and pick up some more value-oriented positions.
Also weighing on sentiment prior to the open was news that Beijing had revealed that gross domestic product had fallen short of estimates in the third quarter, coming in at 4.9% annual growth, less than the 5.3% clip expected by economists.
On the macro front, September's industrial production figures will be released at 1415 BST, while the NAHB's October housing market index was slated for release at 1500 BST, the Federal Government's monthly budget statement was prepped for publication at 1900 BST and August foreign bond investment and overall net capital flows will follow at 2100 BST.
In the corporate space, Disney shares traded lower in pre-market after analysts at Barclays downgraded the stock, pointing to an expected slowdown in subscriber growth.
While things were fairly quiet on the earnings front on Monday, big-time names like Netflix, Johnson & Johnson, United Airlines and Procter & Gamble will report tomorrow, while Tesla, Verizon and IBM will publish their latest quarterly results before the week is out.
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