MARKET SNAPSHOT: Dow Futures Pull Back After 5-day Rally, With Earnings In Focus
19 Luglio 2018 - 11:41AM
Dow Jones News
By Sara Sjolin, MarketWatch
Travelers earnings on deck before the open; Microsoft after the
closing bell
U.S. stocks were poised for a day of mild losses on Thursday,
with the Dow industrials on track to pull back from a five-day
rally driven partly by optimism over the U.S. economy.
Traders appeared to be pausing for breath as they looked ahead
to prominent earnings releases, including from Dow components
Travelers and Microsoft, in what is shaping up to be an upbeat
season.
Readings on weekly jobless claims and the Philly Fed index are
on deck ahead of the open.
What are markets doing?
Futures for the Dow Jones Industrial Average fell 39 points, or
0.2%, to 25,122, while those for the S&P 500 index dropped 6.75
points, or 0.2%, to 2,809.25. Futures for the Nasdaq-100 index gave
up 16 points, or 0.2%, to 7,388.50.
The premarket pullback comes after the Dow on Wednesday logged
its longest winning streak in two months
(http://www.marketwatch.com/story/us-stock-futures-fight-for-direction-with-powell-morgan-stanley-earnings-ahead-2018-07-18),
ending 0.3% higher, and the S&P 500 closed with a 0.2% gain.
The Nasdaq Composite Index finished less than a point lower,
slipping back from a record close scored on Tuesday.
What is driving the market?
The muted action on Thursday came as traders absorbed recent
market-moving events, including Federal Reserve Chairman Jerome
Powell's two-day congressional testimony, upbeat economic data and
a raft of largely positive earnings.
The earnings season was expected to continue at full speed on
Thursday, with Travelers Cos. Inc.(TRV) , Philip Morris
International Inc.(PM) and Domino's Pizza Inc.(DPZ) on the docket
ahead of the open.
Capital One Financial Corp.(COF) , Microsoft Corp.(MSFT) and
Intuitive Surgical Inc.(ISRG) were slated to report after the
close.
But worries about a potential trade war were hovering after
President Donald Trump threatened
(http://www.marketwatch.com/story/trump-threatens-eu-with-tremendous-retribution-via-auto-tariffs-2018-07-19)
"tremendous retribution" against the European Union on Wednesday,
specifically mentioning auto tariffs, if his meeting with EU
officials next week doesn't yield what he considers a fair auto
trade deal.
What are strategists saying?
"With EPS growth exceeding 22% we are obviously heading towards
the best earning season in eight years. More interestingly, we
started seeing rotation from non-cyclical to cyclical sectors over
the past couple of days in a clear sign that investors are willing
to take more risk," said Hussein Sayed, chief market strategist at
FXTM, in a note.
"If this earnings momentum continues at its current pace the
S&P 500 may take out the record high posted on 26 January; at
the moment, the index is just 57 points away from this record," he
added.
What's on the economic calendar?
Weekly jobless claims are due at 8:30 a.m. Eastern Time, with
224,000 Americans forecast to have filed for unemployment claims
last week.
The Philadelphia Fed index for July is also due at 8:30 a.m.,
followed by leading economic indicators for June at 10 a.m.
Federal Reserve Vice Chairman Randall Quarles will give a speech
on alternate reference rates at the New York Fed at 9 a.m.
Eastern.
Stock movers
Shares of eBay Inc.(EBAY) fell 5.9% before the bell after the
company late Wednesday reported an earnings beat but issued a
lower-than-expected guidance
(http://www.marketwatch.com/story/ebay-stock-falls-after-earnings-beat-weak-guidance-2018-07-18).
IBM Corp.(IBM) traded 3.1% higher premarket after the tech
giant's earnings out late Wednesday topped Wall Street estimates
(http://www.marketwatch.com/story/ibm-stock-ticks-higher-as-mainframe-gains-fuel-earnings-beat-2018-07-18).
What are other markets doing?
Stocks in Asia closed lower
(http://www.marketwatch.com/story/most-asian-stocks-rise-with-nikkei-on-track-for-five-day-winning-streak-2018-07-18),
with European markets mostly matching the downbeat mood.
U.K. stocks , however, bucked the negative trend
(http://www.marketwatch.com/story/ftse-100-holds-steady-as-traders-focus-on-retail-sales-data-2018-07-19)
after British retail sales data missed expectations and sent the
pound sharply lower.
The ICE U.S. Dollar index climbed 0.3% to 95.353.
Oil prices and gold prices both slumped, weighed on by the
stronger dollar.
(END) Dow Jones Newswires
July 19, 2018 05:26 ET (09:26 GMT)
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