U.S. stock futures little changed after Dow, S&P 500 fall from their highs

U.S. stock futures were little changed early Tuesday morning after the Dow Jones Industrial Average and S&P 500 fell from record highs in regular trading on Monday amid concerns about a resurgence in Covid-19 cases. Dow Jones Industrial Average futures dipped 21 points. S&P 500 futures were flat while Nasdaq 100 futures traded mildly higher. During regular trading on Monday, the Dow fell 106.66 points to 35,101.85, or 0.3%. The S&P 500 traded down 0.1% at 4,432.35. The Nasdaq Composite rose 0.16% to 14,860.18.

Energy stocks led the declines after oil prices fell 4% amid fears that a wave of Covid cases could lead to a demand slowdown. Recovery plays including Norwegian Cruise Line and United Airlines were down as well. Treasury yields rose, however, following data released by the Labor Department that showed job openings jumped to 10.1 million for the month of June, versus the 9.1 million expected by economists.

Still, the labor market might be tighter than it appears, according to Natixis’ Joseph Lavorgna. “The July employment report was solid confirming the spell of robust economic growth and the 2021 boom,” he said in a note. “While the job market is still far away from a couple of key pre-pandemic benchmarks, recent data suggest there is much less labor slack than what is implied by the unemployment rate. If worker shortages persist, wages will be poised to rise further, and even more government spending will serve as an additional accelerant.”

U.S. stock futures little changed after Dow, S&P 500 fall from their highs, CNBC, Aug 10