MONDAY – U.S. stocks were lower Monday, with the market perhaps worried about what is likely to be a tougher earnings season.
At around 8:35 a.m. ET, Dow Jones Industrial Average futures indicated a negative open of more than 100 points. Futures on the S&P 500 and Nasdaq 100 were both marginally lower.
Market focus is largely attuned to corporate results, with major U.S. banks set to get the ball rolling later in the week.
Analysts have warned that the upcoming earnings season could be the first quarter of contracting corporate results since 2016.
J.P. Morgan Chase and Wells Fargo are both set to report their latest figures on Friday.
Before that, minutes from the Federal Reserve’s last meeting are due to be released on Wednesday.
Following the Fed’s most recent meeting in March, the central bank decided to maintain interest rates and hold off on any further increases this year.
On the data front, factory orders for February will be published at around 10 a.m. ET.
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SUNDAY – Stocks posted their second weekly rise on Friday as stocks were boosted by better-than-expected jobs data and progress on the U.S.-China trade front.
The S&P 500 and Dow Jones Industrial Average both rose about 2% this week, while the Nasdaq Composite jumped 2.7%. On Friday, the S&P 500 and Nasdaq closed up by 0.5% and 0.6%, respectively.
Materials and financials were the best-performing sectors this week, rising 4.3% and 3.3%, respectively. Bank shares led the gains in financials. Morgan Stanley rose more than 6% this week, while Goldman Sachs, Bank of America and Citigroup all ended the week up more than 5%.
The U.S. economy added 196,000 jobs in March, according to data released on Friday by the Bureau of Labor Statistics. Economists polled by Dow Jones expected 175,000. The U.S. unemployment rate, meanwhile, remained at 3.8%. However, wage growth expanded 3.2% just below an expected gain of 3.4%.
Wall Street was looking forward to this report after the previous jobs data showed growth of just 20,000. That number was revised higher to 33,000 on Friday.
Friday’s strong jobs report comes after the release of disappointing economic data earlier in the week. Activity in the U.S. services sector fell to its lowest level since August 2017 while payrolls data released on Wednesday was also below expectations.
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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.”
THURSDAY – Stocks fell on Thursday after the European Central Bank slashed its economic growth forecast for 2019 and announced a new round of stimulus to help banks in the region, stoking worries over the global economy.
The Dow Jones Industrial Average traded 246 points lower as shares of 3M and United Technologies lagged. The S&P 500 fell 0.7 percent, led by declines in the industrials and materials sectors. The Nasdaq Composite dropped 0.8 percent. The indexes were headed for their fourth consecutive loss.
Both the Nasdaq and S&P 500 also broke below their 200-day moving averages, levels that are closely watched by traders.
ECB President Mario Draghi said the central bank cut its growth estimate to 1.1 percent, down from a 1.7 percent expansion forecast released in December.
Thursday’s moves come after the major indexes posted their third straight day of losses, with investors eager to know details from trade negotiations between the U.S. and China.
Stocks are still up sharply for the year despite Thursday’s losses. The S&P 500 and Nasdaq have both risen more than 10 percent while the Dow is up more than 9 percent.
THURSDAY – U.S. stock index futures erased earlier losses on Thursday after the European Central Bank announced a new round of stimulus to help banks in the region.
At 8:10 a.m. ET, Dow Jones Industrial Average futures were up 23 points after slipping nearly 100 points. S&P 500 and Nasdaq 100 futures were also up slightly.
The ECB said its new targeted longer-term refinancing operations (TLTRO-III) stimulus program will start in September and run through March 2021. TLTROs are loans provided by the ECB to European banks at a low rate, making it easier for them to lend money to consumers, which in turn can help stimulate the economy. This is the third stimulus injection from the ECB since 2014.
Wall Street ended Wednesday’s session lower, posting its third consecutive decline. Investors are eager to know details from trade negotiations between the U.S. and China.
As trade talks between the world’s largest economies continue, there’s fresh tensions regarding Huawei. The Chinese firm filled a lawsuit against the U.S. government, claiming the law which bans it from selling equipment to government agencies is unconstitutional.
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MONDAY – U.S. stock index futures rose on Monday on a report that U.S. and China are getting close to a trade deal.
This morning, the Dow Jones Industrial Average futures were up 65 points, indicating a gain of more than 70 points at the open. Futures on the S&P 500 and Nasdaq 100 were also slightly higher.
The Wall Street Journal reported that China had proposed to bring down duties on certain American goods in an attempt to strike a deal with the U.S. The same report suggested both countries are at the final stage of their negotiations, which could see the country’s leaders meeting at a special summit to sign a trade deal soon.
The Trump administration touted last week significant progress being made in U.S. negotiations with China. Treasury Secretary Steven Mnuchin told CNBC on Thursday the two sides were getting closer.
The back-and-forth on trade between the two countries has sent ripples through financial markets since last year, with investors fretting how tighter trade conditions could impact corporate profits.
On the economic front, there will be construction spending figures out at 10 a.m. ET.
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Stocks rose on Friday on the back of stronger-than-expected employment data. Investors also shrugged off concerns over an escalating trade war between the U.S. and China.
The Dow Jones Industrial Average jumped 99.74 points to 24,456.48, with Apple and Microsoft outperforming. The S&P 500 closed 0.8 percent higher at 2,759.82, with health care rising 1.5 percent. The Nasdaq composite climbed 1.3 percent to 7,688.39 as the iShares Nasdaq Biotechnology ETF (IBB) surged 3.8 percent. Facebook rose to an all-time high, also boosting the Nasdaq.
The U.S. economy added 213,000 jobs in June, while economists polled by Reuters expected a gain of 195,000.
WEDNESDAY – Stocks rose on Wednesday, boosted by dealmaking activity and potentially improving trade relations between the U.S. and the European Union.
The Nasdaq composite rose 1 percent and hit an all-time high, led by Facebook and Netflix, which also reached record levels. The S&P 500 gained 0.4 percent, with technology stocks outperforming.
The Dow Jones industrial average, meanwhile, rose 10 points as it tired to snap its longest losing streak since March 2017.
Disney raised its bid for Twenty-First Century Fox assets to $38 per share, or $71.3 billion, surpassing an offer made by rival and NBCUniversal parent Comcast. Last week, Comcast bid $65 billion in cash for Fox assets which include FX, Star TV and stakes in Sky.
The bid sent Fox shares higher by 7.3 percent.
Stocks fell on Tuesday as trade tensions between the U.S. and China intensified. The Dow led the way lower, sliding nearly 300 points and erasing its gains for 2018.
Small cap and penny stock index Russell 2000 also jumped higher Wednesday.