Stocks poised to extend losses Tuesday
U.S. stock markets are poised to open lower on Tuesday after the technology-dominated Nasdaq composite finished the previous session in the red on inflation fears.
Shares of Facebook (NASDAQ: FB) shed more than 4% while Tesla (NASDAQ: TSLA) tumbled 3.82%. Netflix (NASDAQ: NFLX) and Amazon (NASDAQ: AMZN) slumped more than 3%.
Market participants worry that commodity-fueled inflation will force central banks to withdraw the ultra-low monetary policies earlier than expected.
By 5:20 a.m. ET, futures tied to the Nasdaq 100 gave away 156 points, or 1.17% to 13,200.75. S&P 500 futures dropped 22.88 points, or 0.55% to 4,160.62 while the blue-chip Dow futures lost 91 points, or 0.26% to 34,577.
Crude tumbles on inflation fears
Crude futures were also trading lower early Tuesday on rising inflation worries and the hacked Colonial Pipeline system resuming operations at one section of the key link.
The pipeline is set to return to full service by the end of the week, but some Gulf Coast refiners are already paring output. Colonial Pipeline halted its systems in the wake of a cyberattack that was carried out by a hacking group the FBI identified as DarkSide.
As of 5:20 a.m. ET, U.S. West Texas Intermediate (WTI) crude futures fell 35 cents, or 0.52% to $64.58 a barrel. International Brent crude futures were at 67.97, down 35 cents, or 051% a barrel.
L Brand slides amid reports it has decided to spin off Victoria’s Secret
Shares of L Brands (NYSE: LB) slipped in Tuesday’s pre-market trading session after the New York Times reported that the retailer has opted to spin off Victoria’s Secret rather than sell it.
According to the report, L Brands received several offers for Victoria’s Secret north of $3 billion, but the company rejected as it was seeking an offer of between $5 billion to $7 billion.
Sources told the NYT that L Brands has now chosen to split itself into two independent, publicly listed companies: Victoria’s Secret and Bath & Body Works. According to the sources, the deal is set to close in August.
As of writing, L Brands stock was indicated 89 cents, or 1.29% lower to $67.90 a share.
