Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dow Futures 105 Pts Higher; Oil Rises on Colonial Pipeline Attack

Stock Markets May 10, 2021 07:03AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

By Peter Nurse

Investing.com - U.S. stocks are seen opening mixed Monday, while crude prices rise in the wake of a cyber attack on the largest U.S. gasoline pipeline.

At 7:05 AM ET (1205 GMT), the Dow Futures contract was up 105 points, or 0.3%, S&P 500 Futures traded 3 points, or 0.1%, higher, but Nasdaq 100 Futures dropped 36 points, or 0.3%.

The Dow Jones Industrial Average and S&P 500 closed at record highs Friday, and these indices are expected to open higher Monday as investors seek out value stocks following Friday’s unexpectedly weak April jobs report, which cooled fears the Federal Reserve may be forced to tighten policy to curb an overheating economy.

However, the tech-heavy Nasdaq Composite is seen opening lower, with the megacap tech stocks struggling to move higher from already advanced levels despite generally strong quarterly earnings. 

Additionally, the benchmark 10-year U.S. Treasury yield edged up toward 1.60% as traders brace for a busy week of auctions.  

Elsewhere, oil prices strengthened and gasoline futures hit a near three-year high Monday after a ransomware attack caused Colonial Pipeline, which provides nearly half of the U.S. east coast's fuel supply, to shut down its entire system on Friday, stoking expectations of gasoline shortages along the U.S. East Coast.

Some smaller lines were restarted Sunday, but Colonial has given no timeline for the restart of its main pipelines.

U.S. crude futures traded 0.5% higher at $65.22 a barrel, the Brent contract rose 0.6% to $68.69, while gasoline futures on the New York Mercantile Exchange rose 1.4% to $2.1562 a gallon, climbing to the highest level since May 2018 before paring gains.

The surge in energy prices is sure to add to the inflation debate, with the April CPI report due on Wednesday. This is forecast to show prices posting more gains, with the annual figure seen rising 3.6% on the year, a sharp jump from March’s 2.6%, and considerably above the 2% level the Federal Reserve usually seeks to limit price rises to.

In the corporate sector, the generally successful first-quarter earnings season is gradually winding down, but there will still be updates Monday from Duke Energy (NYSE:DUK), Air Products (NYSE:APD) and Marriott International (NASDAQ:MAR), the last of which posted a loss for the quarter as the pandemic again hit bookings.

Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) could also be in focus following reports that the U.S. Department of Defense is rethinking its $10 billion ‘JEDI’ contract for Cloud hosting, the implementation of which is being delayed by litigation from Amazon.

Cybersecurity stocks, such as FireEye (NASDAQ:FEYE) and SolarWinds (NYSE:SWI), are also in demand on the back of the Colonial Pipeline ransomware attack.

Additionally, gold futures rose 0.5% to $1,839.45/oz, while EUR/USD traded flat at 1.2163.

 

Dow Futures 105 Pts Higher; Oil Rises on Colonial Pipeline Attack
 

Related Articles

Diageo to wind down Russia operations by year-end
Diageo to wind down Russia operations by year-end By Reuters - Jun 28, 2022 1

By Richa Naidu LONDON (Reuters) -Diageo, the world's largest spirits maker, will wind down its business operations in Russia over the next six months, it said on Tuesday, becoming...

Ark's Cathie Wood Says She Was Wrong on Inflation
Ark's Cathie Wood Says She Was Wrong on Inflation By Investing.com - Jun 28, 2022 1

By Sam Boughedda Founder and chief executive officer of Ark Investment Management Cathie Wood said, in an interview with CNBC Tuesday, that she was wrong on inflation. Wood had...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email