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US pre-open: Stocks set for lower start ahead of trade talks, data deluge

By Alexander Bueso

Date: Thursday 21 Feb 2019

US pre-open: Stocks set for lower start ahead of trade talks, data deluge

(Sharecast News) - Futures are pointing to a slightly lower start to the trading day on Wall Street as investors wait on a spate of high-frequency economic indicators, even as they scan their screens for any fresh headlines relating to the start of trade talks between senior US and Chinese officials.
As of 1301 GMT, the Dow Jones Industrials was being called to start the day down by 39.0 points at 25,925.0, alongside a decline of 5.5 points on the S&P 500 to 2,781.50.

Commenting on the market mood ahead of the next round of contacts between US and Chinese officials, IG's Chris Beauchamp said: "Today sees the US and China return to the negotiating table, with markets hopeful that the sides will find some form of pathway to a solution.

"Markets are becoming less sensitive to the fact that these talks are taking place, in some ways reflecting the weariness and scepticism that comes with each meeting that comes and goes. However, while stocks appear to be showing lower expectations, we are still seeing an underlying element of optimism as evident from the seven-month high for the Yuan against the dollar."

To take note of, overnight Bloomberg reported that Washington and Beijing were working on various memorandums of understanding covering areas that ranged from agriculture or technology transfers and intellectual property to non-tariff barriers.

On the economic calendar for Thursday, data on weekly jobless claims, durable goods orders and the Philly Fed's factory sector index were all due out at 1330 GMT.

Figures on existing home sales in January were scheduled to follow at 1500 GMT.

In corporate news meanwhile, Wendy's reported better-than-expected adjusted earnings per share of 16 cents (consensus: 15 cents) for the fast-food restaurant chain's fourth quarter, but at $397.8m, sales were a tad shy of the analyst consensus.

Going the other way, Norwegian Cruise Lines pleased, reporting an adjusted quarterly EPS of 85 cents (consensus: 79 cents) and offering stronger than anticipated guidance for its full-year 2019 profits per share.

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