THURSDAY – U.S. stock index futures fell on Thursday morning as investors digested the Federal Reserve’s latest announcement on monetary policy as well as a sharp drop in Biogen shares.
At 7:48 a.m. ET, Dow Jones Industrial Average futures indicated a decline of 136 points at the open. Futures on the S&P 500 and Nasdaq 100 also fell.
The Dow closed lower on Wednesday after the Fed announced a more dovish policy. Jerome Powell, the Fed’s chair, said the central bank is forecasting no rate hikes in 2019, which is down from two hikes forecast earlier. U.S. Treasury yields fell on the news, which added pressure on certain stocks, including banks.
Rising rates are good for banks since they are able to lend out money to investors at a profitable rate of interest. Lower interest rates restrict the bank’s ability to make profits thus adding pressure on margins.
The central bank also lowered its growth outlook for the year and indicated it would end its balance-sheet reduction process by the end of September.
U.S.-China trade is also in focus for investors after mixed comments from the White House. President Donald Trump said Wednesday that Washington’s tariffs on Beijing could stay on for a “substantial period of time.”
WEDNESDAY – U.S. stock indexes barely moved on Wednesday as shares of FedEx fell while investors awaited a policy decision by the Federal Reserve.
At 10:00 a.m. ET, Dow Jones Industrial Average was down just about 100 points. S&P 500 and Nasdaq 100 were also little changed.
Concerns over global growth and U.S.-China trade talks were also renewed to keep stock gains subdued.
Bloomberg News reported some U.S. officials are worried China could walk back on some concessions. However, The Wall Street Journal said U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin both plan to travel to Beijing next week for another round of negotiations with Chinese Vice Premier Liu He. These reports buffeted stocks on Tuesday.
The world’s two largest economies have imposed tariffs on billions of dollars’ worth of one another’s goods over the past year, battering financial markets and souring business and consumer sentiment.
In Asia, MSCI’s broadest index of Asia-Pacific shares, excluding Japan, dipped 0.4 percent.
No economic data are expected on Wednesday, however, on the earnings front, General Mills is set to report its results before the bell and Williams-Sonoma will report after the bell.
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Stocks started lower on Tuesday as investors digested the release of weaker-than-expected Home Depot earnings, mixed economic data and testimony from the top-ranked Federal Reserve official.
The Dow Jones Industrial Average traded just above even after falling more than 100 points earlier in the day. The S&P 500 climbed 0.1 percent while the Nasdaq Composite was also up slightly.
Strong consumer confidence numbers helped stocks rebound. The Conference Board said its consumer confidence index jumped to 131.4 in February, easily topping an estimate of 124. In January, consumer confidence was at 121.7.
Investors also digested testimony from Federal Reserve Chairman Jerome Powell to a U.S. Senate committee on Tuesday. In prepared remarks, Powell said the economy is “healthy” but that the Fed is also seeing “crosscurrents and conflicting signals.” It comes after the U.S. central bank adopted a more cautious stance on future interest rate hikes last month.
Stocks have been on a tear recently, with the Dow and Nasdaq rising a nine-week winning streak. The S&P 500 has risen for eight of the past nine weeks. Diminishing concerns over U.S.-China trade and tighter monetary policy have contributed to the sharp stock gains.
MONDAY – U.S. stocks traded lower on Monday, the first trading day of the fourth quarter, as investors digested key economic news and kept an eye on oil prices.
The Dow Jones industrial average fell about 100 points in midmorning trade before holding about 50 points lower, with UnitedHealth contributing the most losses. The S&P 500 fell 0.25 percent, with real estate and utilities leading decliners, as both fell 1 percent. The Nasdaq composite slid approximately 0.1 percent.
In economic news, the September Markit Manufacturing PMI came in at 51.5, a three-month low. “U.S. manufacturers signalled another moderate upturn in both production volumes and incoming new work during September, but the latest survey indicated a further loss of growth momentum from July’s recent peak,” Markit said.
The ISM Manufacturing index for September came in at 51.5, up from 49.4 in the previous month. Construction spending fell 0.7 percent in August, with analysts expecting a 0.2 percent increase.
8:15 a.m.: ADP payrolls
8:30 a.m.: Trade deficit
9:45 a.m.: Markit services PMI
10 a.m.: ISM non-manufacturing
10 a.m.: Factory orders
8:30 a.m.: Jobless claims
8:30 a.m.: Employment report
10 a.m.: Wholesale trade
3 p.m.: Consumer credit
TUESDAY – U.S. stock index futures pointed to a slightly higher open on Tuesday, as investors remained watchful over the recovery in U.S. crude, ahead of important economic data.
For the U.S.’ first trading day of the week after Labor Day, oil is expected to keep investors abuzz after leading oil producers Russia and Saudi Arabia agreed on Monday to cooperate on stabilizing the energy market.
On the data front, the final Markit services PMI is due out at 9.45 a.m. ET, followed by the ISM non-manufacturing data, set to come out at 10 a.m. ET.
The data will be of key importance for the U.S., as investors look for indications as to how well the U.S. economy is performing. The data come just days after a disappointing jobs figure for the U.S. In August, nonfarm payrolls increased by 151,000, below what Wall Street economists were expecting of 180,000.
When it comes to earnings, Marvell Technology posted quarterly results before the bell Tuesday. Dave & Buster’s Entertainment and Casey’s General Stores are also expected to release their latest earnings.
European stocks traded slightly higher, while Asia-Pacific indexes finished mixed to higher overnight.
THURSDAY – U.S. equities traded slightly higher Thursday, a day ahead of a key speech from Federal Reserve Chair Janet Yellen, and following the release of solid economic data.
The Dow Jones industrial average rose just 10 points, with Home Depot contributing the most losses. The S&P 500 rose about 0.15 percent, with materials leading. Investors also kept an eye on health care a day after posting its worst day since June 24.
The sector fell Wednesday after presidential candidate Hillary Clinton tweeted about Mylan’s price increases of the allergy drug EpiPen.
The three major indexes have held in a tight range recently amid low trading volume and a lack of volatility. On Wednesday, the S&P recorded its 33rd straight session without a 1 percent move on a closing basis.
Earnings: Autodesk, GameStop, Pure Storage, Splunk
1 p.m. $28 billion 7-year note auction
Earnings: Big Lots
Fed Chair Janet Yellen speaks at Jackson Hole, Wyoming
8:30 a.m. Real GDP Q2 (second); international trade
9:45 a.m. Services PMI
10 a.m. Consumer sentiment
MONDAY – U.S. stocks tried for gains on Monday as investors digested falling oil prices, low trading volume and looked ahead to a key speech from the top Federal Reserve official.
Stocks posted new record highs last week, despite the S&P notching its 30th straight session without a 1 percent move on a closing basis, its longest streak since 2014.
Fed Chair Janet Yellen is scheduled to deliver a speech Friday on the U.S. economy and monetary policy at the Economic Policy Symposium at Jackson Hole, Wyoming.
Yellen’s remarks will be delivered following hawkish rhetoric from Fed Vice Chairman Stanley Fischer and New York Fed President William Dudley.
There are no major economic data reports due Monday, but the second read on second-quarter GDP is scheduled for release Friday.
10 a.m. New home sales
1 p.m. $26 billion 2-year note auction
9 a.m. FHFA home prices
9:45 a.m. Manufacturing PMI
10 a.m. Existing home sales
1 p.m. $34 billion 5-year note auction
U.S. stocks traded lower Monday, with energy stocks weighing as oil prices declined, as investors looked ahead to major earnings reports and central bank meetings.
Chevron, Exxon Mobil and UnitedHealth contributed the most to declines in the Dow Jones industrial average, which held about 100 points lower in afternoon trade. The Dow is up about 3 percent for the month so far.
No major economic data was due Monday. The Dallas Fed manufacturing index improved from June’s negative 18.3 to minus 1.3 in July. Second-quarter GDP and housing data are among the major reports due later in the week.
About nine stocks declined for every five advancers on the New York Stock Exchange, with an exchange volume of 423 million and a composite volume of 2.0 billion in afternoon trade.
Two-day Fed meeting begins
9 a.m. S&P/Case-Shiller home prices
9:45 a.m. Services PMI
10 a.m. New home sales<br>10 a.m. Consumer confidence
1 p.m. $34 billion 5-year note auction
7 a.m. Mortgage applications
8:30 a.m. Durable goods; pending homes
11:30 a.m. $15 billion 2-year floating rate notes auction
2 p.m. FOMC rate decision
U.S. stocks traded in a range Monday, after five straight weeks of gains, as investors eyed oil and housing data in the holiday-shortened week.
The major averages tried to reclaim opening losses to hold mostly higher, with telecommunications leading S&P 500 advancers and Boeing the top contributor to gains in the Dow Jones industrial average.
Citigroup traded more than 1 percent higher. KBW said in a Sunday note the firm “could be one of the only U.S. (global systematically important banks) that could successfully split up,” a move that “should unlock meaningful shareholder value—50+% returns versus the current market capitalization.”
The Nasdaq composite outperformed in morning trade, as Apple gained more than half a percent and the iShares Nasdaq Biotechnology ETF (IBB) rose 1.5 percent.
U.S. crude oil futures for April delivery attempted to hold higher above $39.50 a barrel. After the settle, the contract rolls to May, which was above $41 in morning trade.
12:40 p.m.: Atlanta Fed President Dennis Lockhart speaks on the economic outlook and monetary policy.
8:30 p.m.: St. Louis Fed President James Bullard speaks on economic inequality
U.S. stocks opened higher Friday, extending a recent rally as oil prices rose and the dollar weakened following the Federal Reserve’s more accommodative policy decision earlier in the week.
The S&P 500 traded in positive territory for 2016 with financials leading nearly all sectors higher.
U.S. crude oil futures for April delivery extended recent gains to briefly top $41 a barrel in morning trade ET.
Options expiration on Friday will likely contribute to volatility.
The U.S. dollar index recovered slightly from a recent decline to trade mildly higher, but is still off more than 1 percent for the week so far. The euro was just below $1.13 and the yen at 111.53 yen against the greenback.
10 a.m.: Consumer sentiment
10 a.m.: Atlanta Fed business inflation expectations
11 a.m.: Boston Fed President Eric Rosengren speaks
1 p.m.: Oil rig count
St. Louis Fed President James Bullard