Wall Street Falters Pre-Bell, Mega-Cap Tech Drags Nasdaq

Tuesday, May 4, 2021 9:09 AM | MT Newswires

US equities were set to open in red territory Tuesday, with futures of tech-heavy Nasdaq posting sharp losses amid weakness in mega-cap technology stocks, including Amazon (AMZN) and Tesla (TSLA).

Dow Jones Industrial Average futures fell 146 points or 0.4%, S&P futures declined 23 points or 0.6%, and Nasdaq futures slumped 114 points or 0.8%.

Oil prices rose, with both global benchmark Brent crude and US West Texas Intermediate up around 1.3%, supported by a weaker greenback and hopes of improving demand as economic activity in the US and Europe picked up steam.

At 8:30 am, data showed US trade deficit widened to $74.4 billion in March from $71.1 billion deficit in the previous month, nearly in-line with expectations for a $74.3 billion gap, according to Bloomberg data.

At 10 am, forecasters see a 1.3% increase in factory orders in March following February's 0.8% downtick.

In other world markets, Hong Kong's Hang Seng closed 0.7% higher, while UK's FTSE 100 slipped 0.01% and Germany's DAX index slumped 1.5% in Europe's early afternoon session. Stock markets in China and Japan were closed for public holidays.

On the winning side, shares of Huttig Building Products (HBP) were 22% higher pre-bell after the company swung to a net profit in Q1 on higher sales. Vaxart (VXRT) shares increased 18% after the company said it has enrolled the first patient in a phase 1b trial of its norovirus vaccine candidate. Domtar (UFS) shares surged 19% following media reports of a potential takeover offer from Paper Excellence.

On the losing side, Ballard Power Systems (BLDP) shares slumped 15% after the company posted lower Q1 revenue, while net loss was flat. SmileDirectClub (SDC) shares fell 9% after the company said in a filing with the US Securities and Exchange Commission it expects an approximately $10 million to $15 million revenue impact in Q2 from the a recent cyber-attack and associated downtime.

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