U.S. Stocks Attempt Rebound, European Indexes Trade Higher

Barry Adams
10 May, 2022
New York City

Futures of the S&P 500 index increased 0.6% to 4,009.10 and the Nasdaq Composite added 0.9% to 12,309.55. 

Stocks are attempting a rebound after six weeks of selloff that has dragged the Nasdaq deep in the bear zone and the S&P 500 index down 14% in the year so far. 

Inflation jitters were in full display in Monday's trading but the benchmark 10-year Treasury note yield eased after three weeks of rising. 

In early trading today, the yield is down to 3.017%. 

Crude oil futures eased in New York and London trading with Texas oil trading down 60 cents to $102.78 and the Brent crude down 80 cents to $105.11 a barrel. 

Earnings were also in focus after the popular fitness equipment maker Peloton plunged more than 25% after the company reported larger-than-expected quarterly loss and the company tapped bank credit lines. 

Vroom soared 35% in the pre-market trading after the used-car seller announced a restructuring plan. Quarterly loss soared more than four-fold to $310 million and sold 31,285 units, an increase of 21% from a year ago. 

European indexes jumped as investors searched for bargains. 

The DAX index in Frankfurt added 1.3%, the CAC 40 index in Paris gained 0.8% and the FTSE 100 index in London advanced 0.6%. 

German bund held near 8-year high and investors worried if the rates have advanced too fast on the expectations of rate hike from the European Central Bank. 

The benchmark yield has jumped to 1.03% from the low of 0.5% in mid-August. 

Fraport Group declined 4% after the airport operator reported larger-than-expected loss. 

Renault said it has agreed to sell more than one-third stake in its unit in Korea to China-based Geely Automotive for $200 million. 

Bayer, the fertilizer and pharmaceutical company gained after reporting better-than-expected first quarter results. 

Swedish Mach AB soared 26% after the tobacco products maker confirmed that it has been approached by Philip Morris with a takeover offer.   

The Nikkei index in Tokyo edged down 0.6% and trimmed the day's loss after the latest household spending showed some promise. 

NTT Data Corp fell as much as 7% after the company announced restructuring. 

Japan Steel Works plunged 16% to 2,554 yen after the company reported that one of its units falsified product data for more than two decades. 

The Hang Seng index in Hong Kong declined 1.9% but the index in Shanghai jumped 1% after the Chinese government announced rent relief to small businesses struggling from a coronavirus outbreak. 

The two leading indexes in Mumbai ended lower after another day of choppy trading. 

The Sensex fell 0.2% or 105.82 to 54,346.85 and the Nifty index declined 0.4% or 61.80 to 16,240.05.