Updated 2 min read
US stock futures mostly gained on Wednesday after Google (GOOG, GOOGL) was spared the worst in an antitrust ruling, as Wall Street waited for jobs market data amid a continued sell-off in bonds.
Futures on the tech-heavy Nasdaq 100 (NQ=F) rose 0.7%, while those on the S&P 500 (ES=F) moved up roughly 0.5%. Contracts on the Dow Jones Industrial Average (YM=F), which includes fewer tech stocks, held near the flat line on the heels of a downbeat day for stocks.
Tech hopes are buoying markets after a judge’s decision not to force Google (GOOG) to sell its Chrome browser to loosen its dominance in search. The ruling late Tuesday also allowed the Alphabet-owned company to continue paying Apple (AAPL) to use Google Search as default in Safari and Siri.
The outcome to the landmark antitrust case fell far short of Wall Street’s worst fears, lifting a regulatory risk that had hung over Google’s stock. The tech giant’s shares rallied in premarket, as did Apple’s, and faith in the staying power of the Big Tech rally got a boost as the ruling was welcomed as a big win.
But the Dow is lagging as a sell-off in bonds continues to pile on pressure. The 30-year Treasury yield (^TYX) rose to within a hair’s-breadth of reaching the key 5% level, seen as a headwind for stocks. Meanwhile, the benchmark 10-year Treasury yield (^TNX) traded above 4.29%, amid uncertainty around President Trump’s trade policy and the Federal Reserve.
On Wednesday, investors get the release of the JOLTS job openings report at 10 a.m. ET. July’s jobs report showed cracks appearing in the labor market, and further signs of stress could convince the Fed to make a deeper cut in interest rates than currently expected at its September meeting. The crucial August jobs report is set to land Friday.
In corporate earnings, Macy’s (M), Salesforce (CRM), and Dollar Tree (DLTR) report results on Wednesday.
LIVE 7 updates
-
Premarket trending tickers: Apple, Dollar Tree and Macy’s
Here’s a look at some of the top stocks trending in premarket trading:
Apple (AAPL) stock rose 3% in premarket trading on Wednesday following the ruling late Tuesday that Alphabet-owned company to continue paying Apple (AAPL) to use Google Search as default in Safari and Siri.
Dollar Tree (DLTR) stock fell more than 6% on Wednesday before the bell after the discount retailerraised its annual sales and profit forecasts on Wednesday as more Americans across income categories shop for cheaper groceries, apparel and home decor items at its stores.
Macy’s (M) stock soared premarket after raising its fiscal outlook on Wednesday after posting better-than-expected quarterly results.
-
Good morning. Here’s what’s happening today.
-
Important point on Google post-Chrome ruling
I think this is an important point on Google’s (GOOG) stock this morning from the KBW team, after the positive Chrome ruling:
-
Google stock surges as investors cheer antitrust ruling
Shares in Google parent Alphabet (GOOG, GOOGL) jumped almost 6% in premarket trading after a judge ruled it doesn’t have to sell Chrome as an antitrust remedy.
Judge Amit Mehta also allowed Google to keep control of the Android mobile operating system. But in a setback, the tech giant will have to end billion-dollar contracts that fueled its search market dominance.
The DOJ had argued that Google should divest Chrome and Android after a judgement last year that it held an illegal monopoly in search. However, Judge Mehta noted that AI bots now threaten its dominance, and that fed into his ruling.
At the same time, he stopped short of putting an end to Google’s distribution search deal with Apple (AAPL). Its payments for making Google Search a default in Safari and Siri have added up to $20 billion per year in revenue for the iPhone maker, whose shares rose almost 3% in premarket.
Reuters reports:
-
Bond sell-off deepens with longer debt leading losses
Global bonds are selling off as worries around inflation, debt sales, and fiscal disarray undermine faith in what are usually seen as the safest of assets.
Treasury yields rose on Wednesday, with benchmark 30-year yields (^TYX) within a whisker of the closely watched 5% level.
Meanwhille, UK 30-year bond yields rose to 5.75%, having already hit their highest level since 1998. In Japan, yields on 20-year notes jumped to their highest in over 25 years.
Bloomberg reports:
-
Vietnam rally leads to foreign investment withdrawing record funds
Bloomberg reports:
-
Gold maintains rise to reach new all-time high
Bloomberg reports:
