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Stocks - U.S. Futures Flat as 30-Year Bond Inverts

Published 08/28/2019, 06:41 AM
Updated 08/28/2019, 07:07 AM
© Reuters.
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Investing.com - U.S. futures were flat on Wednesday, as investors remained on edge after the yield on the 30-year Treasury bond hit a record low, adding to concerns over the economic fallout from the protracted Sino-U.S. trade war.

The 30-year yield fell below that of the 3-month note a day earlier for the first time since 2007, while the 2-year note inverted against the 10-year bond. The inversion of the Treasury bonds is considered a precursor for a recession, although when and if a downturn will happen remains uncertain.

Nasdaq 100 futures rose 2 points or 0.1% by 6:40 AM ET (10:40 GMT), while Dow futures gained 10 points or 0.1% and S&P 500 futures were up 2 point or 0.1%.

Altria (NYSE:MO) inched up 0.6% in premarket trade after falling 3.5% on news that it is in talks with Philip Morris (NYSE:PM) to merge. Facebook (NASDAQ:FB) gained 0.7% while Intel (NASDAQ:INTC) was up 0.2% and Teva rose 0.5%.

Autodesk (NASDAQ:ADSK) slumped 12.4% after it said the trade war could hurt its financials in the second half of the fiscal year. JP Morgan Chase (NYSE:JPM) was down 0.4%, while Tesla (NASDAQ:TSLA) declined 0.3%.

Amazon.com (NASDAQ:AMZN) inched down 0.1% after reports that it wants exclusive programming for IMDb TV, which launched on Tuesday. The ecommerce giant has reached out to content suppliers for more licensing agreement, including offering upfront license fees, The Wall Street Journal reported.

In commodities, crude oil jumped 1.6% to $55.80 a barrel. Gold futures were flat at $1,551.90 a troy ounce, while the U.S. dollar index, which measures the greenback against a basket of six major currencies, rose 0.1% to 98.012.

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