U.S. stock surge ahead as Lululemon and Micron beat estimate
U.S. stock futures advanced as traders looked for an improvement from the session:
- Dow Jones Industrial Average futures advanced by 232 points or 0.72%.
- S&P 500 saw an increase of 0.92%
- Nasdaq 100 futures advanced 1%
Shares of Lululemon advanced 14% in premarket trading after the athletic apparel retailer beat Wall Street estimates on adjusted profit and revenue. Shares of Micron advanced more than 2.3% after the chipmaker reported its fiscal second-quarter results.
The interest rate on benchmark 10-year notes advanced to 3.59%, and the 2-year rate advanced to 4.07%. The decline comes a day after both yields hit record highs, weighing on the broader stock market.
Key averages retreated as some investors feared higher interest rates were likely to push the economy into recession — even as Wall Street struggled to recover from the regional banking crisis.
In the economic market, traders await the latest home sales statistics, which will be released after trading opens on Wednesday. Economists polled by Dow Jones had predicted a 3% decline last month.
Europe stocks rise
European stock markets advanced further as investors’ doubts about a banking sector recovery diminished.
The pan-European Stoxx 600 index rose 0.92%, while banks gained 1.52%. Tech stocks reversed the decline with a 1.8% advance, while the financial services sector climbed 1.2%.
Shares in UBS advanced 3.2% after the bank said the chief executive would return to the post in April following its recent acquisition of Credit Suisse. Profits retreated to 1.7%.
A partner at Porta Advisors said the level of fear in public over the failure of consistent management at Credit Suisse to oversee multiple events and politicians for their earlier meddling should not be underestimated. Banks were able to finish higher after a difficult session.