As the influential two-day policy meeting of the Federal Open Market Committee commences, financial markets reacted positively in premarket activity on Tuesday. The SPDR S&P 500 ETF Trust experienced a modest increase of 0.2%, while the actively traded Invesco QQQ Trust saw a slightly larger uptick of 0.4%.
This optimistic data hints at a resilient start for U.S. stock futures, evidenced by increases across major indices. The S&P 500 Index futures rose 0.2%, Dow Jones Industrial Average futures climbed by 0.1%, and Nasdaq futures advanced 0.3%, leading into the regular trading hours. Today at 9 am ET, market participants will also be looking to the release of significant housing data with the Case-Shiller Home Price Index and the FHFA House Price Index for May.
Additionally, the July Consumer Confidence bulletin from the Conference Board is set to be released alongside the Job Openings and Labor Turnover Survey (JOLTS) for June at 10 am ET, providing further insights into consumer sentiment and labor market dynamics. In cryptocurrency markets, Bitcoin saw a slight drop of 1%, while the ProShares Bitcoin Strategy ETF dropped by the same percentage. Focusing on sector performance, the Technology Select Sector SPDR Fund (XLK) appreciated by 0.2%, while the iShares US Technology ETF (IYW) had a more substantial rise of 0.5%.
Although the iShares Expanded Tech Sector ETF (IGM.US) remained inactive, investor interest was notably high in semiconductor listed funds. The SPDR S&P Semiconductor ETF gained minimally by 0.01%, and the iShares Semiconductor ETF (SOXX) reported a 0.2% increase. In a notable development, QXO experienced a dramatic 80% decline during premarket trading.
The sharp decline followed the announcement that the company had filed a prospectus supplement pertaining to the resale by certain selling security holders of approximately 789.5 million shares, raising concerns among investors. Winners and losers in the consumer sector presented a mixed bag. The Consumer Staples Select Sector SPDR Fund ($XLP) fell by 0.5%, while the Vanguard Consumer Staples Fund (VDC) remained inactive.
Conversely, the Consumer Discretionary Select Sector SPDR Fund ($XLY) posted a slight gain of 0.2%, indicating a divergence in investor sentiment. Sprouts Farmers Market stock ($SFM) notably surged over 17%, bolstered by upgrades from Deutsche Bank, Wells Fargo, and BMO Capital, following the company’s robust second-quarter earnings report. Within the financial sector, the Financial Select Sector SPDR Fund (XLF) also saw a positive movement of 0.2%.
For leveraged funds, Direxion Daily Financial Bull 3X Shares ($FAS.US) reported a gain of 1%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares ($FAZ), dipped by 1%. Nomura Holdings ($NMR) shares rallied by over 7% prior to the market opening after announcing superior fiscal Q1 results and projecting improved guidance for 2024. In the industrial segment, the Industrial Select Sector SPDR Fund ($XLI) gained 0.3%.
However, both the Vanguard Industrials Index Fund ($VIS) and the iShares US Industrials ETF (IYJ) remained inactive on the trading floor. Stanley Black & Decker enjoyed a solid increase of 5.6% after disclosing Q2 adjusted earnings of $1.09 per diluted share, a significant recovery from a loss a year earlier. Health Care indicators showed slight upward movement with the Health Care Select Sector SPDR Fund ($XLV) rising by 0.1%.
However, Merck ($MRK) saw its shares dip by 1.8% premarket after the pharmaceutical giant revised downward its guidance for 2024 non-GAAP earnings. On the energy front, the iShares US Energy ETF ($IYE) remained inactive, while the Energy Select Sector SPDR Fund ($XLE) stayed flat. Notably, BP ($BP) saw its stock increase by 1.3% after reporting Q2 underlying earnings of $1 per American depositary share, an improvement from $0.89 in the prior year. In commodity trading, the front-month US West Texas Intermediate crude oil price edged down by 0.7% to settle at $75.30 per barrel, while natural gas prices declined 0.5% to reach $2.03 per million British Thermal Units.
The United States Oil Fund (USO) reported a 0.7% decrease, and the United States Natural Gas Fund (UNG) saw a nearly 1.1% drop. Contrarily, December gold futures gained 0.4% to $2,436 an ounce on the Comex, with silver futures rising by 0.5% to reach $28 an ounce. Among ETFs, SPDR Gold Shares ($GLD) edged higher by 0.3%, while the iShares Silver Trust ($SLV) dropped marginally by 0.04%..