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Futures Flat As Soaring Commodities Depress Tech Stocks

S&P futures started the weak flat with Nasdaq futures falling offset by surging commodity stocks as a new record in copper and iron ore prices stoked concern about whether inflation will derail a growth rebound in the world’s largest economy and spoil a record stock rally.  Metal producers were among the biggest gainers in premarket trading, with Freeport-McMoRan, Cleveland-Cliffs and United States Steel all up at least 3%. At 715 am ET, Dow e-minis were up 109 points, or 0.31%, S&P 500 e-minis were up 3.25 points, or 0.08%, and Nasdaq 100 e-minis were down 35.5 points, or 0.26%. The tech-heavy index has been whipsawed by the prospect of inflation which threatens longer-term profit expectations typical of the industry A downgrade by Citi of Internet stocks such as GOOGL did not help. Treasury yields steadied as traders brace for a busy week of auctions.

Some notable premarket movers:

  • Copper miner Freeport-McMoran rose 3.5% premarket, while aluminum giant Alcoa gained 3.6% and steelmaker United States Steel Corp was up 3.1% as copper prices touched a record high and aluminum scaled a new peak.
  • Chevron, Occidental Petroleum and Exxon Mobil all rose about 1% after a cyber attack on top U.S. pipeline operator Colonial Pipeline shuttered fuel network that transports nearly half of the East Coast’s supplies, lifting oil prices.
  • Cybersecurity firm FireEye jumped about 6% as industry sources said the company was among those helping Colonial Pipeline to recover from one of the most disruptive digital ransom schemes reported.
  • Some banks dipped after Malaysia’s 1MDB and a former unit have filed suits against several banks entities including JPMorgan Chase and Deutsche Bank as the nation seeks to recover assets worth more than $23 billion linked to the scandal-plagued state-owned investment fund.

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