US stock futures rebound after rate jitters; Exxon Mobil takes earnings hit
U.S. stock index futures edged higher Wednesday, rebounding after sharp losses on growing uncertainty over the pace of future interest rate cuts.
At 05:55 ET (10:55 GMT), Dow Jones Futures rose 135 points, or 0.3%, S&P 500 Futures climbed 20 points, or 0.4%, and Nasdaq 100 Futures gained 87 points, or 0.4%.
Wall Street indexes slid on Tuesday, pressured by a spike in Treasury yields as stronger-than-expected job openings data pointed to persistent strength in the labor market.
The S&P 500 fell 1.1%, the NASDAQ Composite slid 1.9%, and the Dow Jones Industrial Average fell 0.4%. More economic data due
Tuesday's data pointed to an unexpected increase in job openings and lingering inflationary pressures, which could provide the Federal Reserve with less impetus to cut interest rates sharply in 2025, with the bank having warned as much during its December meeting.
Fed officials reiterated this stance over the weekend, further rattling investor sentiment.
Focus this week is squarely on nonfarm payrolls data for December, due on Friday, for more cues on interest rates.
However, ahead of this, there are more economic figures due out on Wednesday that could provide further clarity on potential Fed monetary policy.
Economists expect a monthly report from management services group ADP to show that private payrolls dipped slightly in December, while the amount of Americans filing for first-time jobless benefits last week is tipped to rise marginally.
Investors will also be keeping tabs on a speech from Fed Governor Christopher Waller on Wednesday, as well as minutes from the rate-setting Federal Open Market Committee's latest meeting, for any more indications on the central bank's policy trajectory. Exxon Mobil flags hit to earnings
In the corporate sector, Exxon Mobil (NYSE:XOM ) will be in the spotlight after the oil major warned that a decline in oil refining profits, along with weak returns from across its operations, would dent its fourth-quarter income by around $1.75 billion versus the prior three-month period.
In a regulatory filing, the oil giant noted that oil refining margins would hit earnings by between $300 million to $700 million compared to the third quarter. Alterations in timing effects are also projected to cut away an additional $500 million to $900 million in earnings from its energy products division.
London-based rival Shell (NYSE:SHEL ) flagged that it will book a charge of $1.3 billion in the fourth quarter related to permits in Germany and the US. It added in an update that earnings from its integrated gas division will also be "significantly lower" than the third quarter. Crude edges higher
Oil prices edged higher Wednesday, extending a bounce from the prior session as US industry data pointed to a drop in oil inventories, while production by OPEC countries was seen falling.
By 5:55 ET, the US crude futures (WTI) climbed 0.3% to $74.50 a barrel, while the Brent contract rose 0.1% to $77.10 per barrel. Both contracts were close to their highest levels since mid-October.
Data from the American Petroleum Institute , released on Tuesday, showed that oil inventories in the US -- the world's top crude consumer -- shrank by more than 4 million barrels in the week to January 3, substantially more than expectations for a draw of 250,000 barrels.
If confirmed by upcoming official data, it would be the second straight week of draws for inventories, reflecting increased travel during the year-end holiday season.
Additionally, data from Reuters showed oil production by countries in the Organization of the Petroleum Exporting Countries decreased in December, with maintenance activity in the United Arab Emirates offsetting an output hike in Nigeria.
(Ambar Warrick contributed to this article.)
Source: Investing.com