Dow futures rise as traders track progress toward reopening the Strait of Hormuz
Dow Jones Industrial Average futures rose Thursday as traders monitored tensions in the Middle East and progress toward an agreement to reopen the Strait of Hormuz. Wall Street was also digesting a heavy slate of corporate earnings reports. As of publication, Dow futures were up 94 points, or 0.2%. S&P 500 futures rose 0.1%, while 100 Index futures fell 0.6%. SanDisk shares fell 9%, weighing on the Nasdaq futures, after the storage company reported fourth-quarter results that failed to satisfy investors. AppLovin plunged 19% after reporting mixed quarterly results. A separate, unnamed company fell 14% after its first-quarter forecast disappointed investors, despite fourth-quarter results that exceeded expectations. Oil prices edged higher as Iran and Oman neared an agreement to reopen the Strait of Hormuz. An Iranian government official told MS NOW that, under an interim agreement, shipping through the strait would not be subject to fees or tolls. Deutsche Bank strategist Jim Reid wrote: “Markets have experienced multiple false dawns during this conflict. While the details are becoming more specific, the focus is shifting from whether an agreement can be reached to what the final arrangement will look like, including unresolved questions such as whether Iran will ultimately be allowed to charge tolls to vessels using the strait.” Meanwhile, the first lockup period for SpaceX stock is nearing expiration, with more than 900 million shares set to be released into the market. The phased unlocking would give early investors their first opportunity to sell, which could put pressure on the stock price. In Asia, Japan’s Nikkei 225 closed down 0.93%, South Korea’s Kospi fell 4.58%, Australia’s benchmark S&P/ASX 200 rose 0.47%, and mainland China’s CSI 300 closed down 0.15%. European stocks opened broadly higher Thursday, with continental technology shares stabilizing after a sell-off in Asian markets.
As of publication, Dow futures were up 94 points, or 0.2%. S&P 500 futures rose 0.1%, while 100 Index futures fell 0.6%.
SanDisk shares fell 9%, weighing on the Nasdaq futures, after the storage company reported fourth-quarter results that failed to satisfy investors. AppLovin plunged 19% after reporting mixed quarterly results. A separate, unnamed company fell 14% after its first-quarter forecast disappointed investors, despite fourth-quarter results that exceeded expectations.
Oil prices edged higher as Iran and Oman neared an agreement to reopen the Strait of Hormuz. An Iranian government official told MS NOW that, under an interim agreement, shipping through the strait would not be subject to fees or tolls.
Deutsche Bank strategist Jim Reid wrote: “Markets have experienced multiple false dawns during this conflict. While the details are becoming more specific, the focus is shifting from whether an agreement can be reached to what the final arrangement will look like, including unresolved questions such as whether Iran will ultimately be allowed to charge tolls to vessels using the strait.”
Meanwhile, the first lockup period for SpaceX stock is nearing expiration, with more than 900 million shares set to be released into the market. The phased unlocking would give early investors their first opportunity to sell, which could put pressure on the stock price.
In Asia, Japan’s Nikkei 225 closed down 0.93%, South Korea’s Kospi fell 4.58%, Australia’s benchmark S&P/ASX 200 rose 0.47%, and mainland China’s CSI 300 closed down 0.15%.
European stocks opened broadly higher Thursday, with continental technology shares stabilizing after a sell-off in Asian markets.