US pre-open: Stocks seen higher but Boeing remains under pressure
By Michele Maatouk
Date: Wednesday 13 Mar 2019
(Sharecast News) - US stock futures pointed to a slightly firmer open on Wall Street on Wednesday, although Boeing shares were likely to remain weaker.
At 1220 GMT, Dow Jones Industrial Average and S&P 500 futures were up 0.2% and 0.3%, respectively, while Nasdaq futures were 0.4% higher.
James Hughes, chief market analyst at Axi Trader, said: "There's still no progress to report on the US-China trade deal and some global markets - Japan in particular - have faced some profit taking off the back of last night's latest round of Brexit carnage - but US indices appear to be holding relatively stable.
"Boeing shares lost further ground during Tuesday's session after European regulators banned the 737 MAX variant from flying on the continent, putting the onus on the American authorities to follow. If this was to happen, then the stock would have the potential to suffer again, with its heavy weighting in the Dow translating into further potential losses for the index."
Investors will also be casting their eye across the pond after UK Prime Minister Theresa May's Brexit plan was voted down in the Commons again on Tuesday. MPs will vote later in the day on whether to take a no-deal Brexit off the table. If that scenario is rejected, there will be another vote on Thursday on whether to delay the whole process by extending Article 50.
In corporate news, shares in Rite Aid looked set to surge at the open after the drugstore chain announced the departure of its chief executive officer alongside a company shake-up that would see it slash about 400 jobs.
Elsewhere, luggage and handbag company Vera Bradley saw its shares jump 8% in pre-market trade following the release of its fourth-quarter earnings.
Build-A-Bear stock looked poised for losses, however, after the retailer reported a surprise loss for the fourth quarter amid weakness in North America and Brexit woes.
On the data front, the producer price index and durable goods orders are at 1230 GMT, while construction spending is at 1400 GMT.
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