Premarket Stock Movers: Shake Shack Pops, Domino’s Drops
Stocks look poised for a higher open as inflation fears subside for the time being.
Dow Jones Industrial Average
futures gained 96 points, or 0.3%, while
futures contracts rose 0.4% and
futures contracts advanced 0.6%.
Concerns about relatively high inflation are easing for now. The 10-year Treasury yield, which rises and falls in response to lower and lower inflation expectations, is down to 1.59% from a closing level of 1.61% on Monday. A lower yield on this bond increases the value of future cash flows, which is positive for stock valuations.
“US equity futures extend yesterday’s gains this morning as inflation fears subside” are part of the picture, writes Tom Essaye, founder of Sevens Report Research.
Recently, warmer than expected inflation has fueled fears that the Federal Reserve will soon be raising interest rates. The Fed’s preferred measure of inflation, the personal consumption expenditure price index, is due on Friday. The index is expected to rise 0.6% from April and 3.5% from last year.
Here are five stocks that evolve into Tuesday’s pre-market action:
(ticker: SHAK) the stock gained 6% after being upgraded by Goldman Sachs and Wedbush Securities.
(CGC) gained 3.4% after being upgraded to buy from Neutral at MKM Partners.
(LAZR) gained 1% after Berenberg initiated hedging the stock with the Hold rating.
(OKTA) gained 0.6% after Stifel initiated a hedge with a Hold rating.
(DPZ) fell 1% after being demoted to Neutral by Buy at Goldman Sachs.
Write to Jacob Sonenshine at [email protected]