US pre-open: Major indices look to recover from two-day losing streak

By Iain Gilbert

Date: Wednesday 06 Dec 2023

US pre-open: Major indices look to recover from two-day losing streak

(Sharecast News) - Wall Street futures were in the green ahead of the bell on Wednesday as the blue-chip Dow Jones tries to recover from two straight losing sessions.
As of 1245 GMT, Dow Jones futures were up 0.09%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.15% and 0.13% firmer, respectively.

The Dow closed 79.88 points lower on Tuesday, extending losses recorded in the previous session and marking a departure from the blue-chip's recent winning streak.

Looking ahead, Wednesday will likely be dominated by the Bank of Canada's rate decision, with traders looking for any hints of potential rate cuts in March.

"With the bank facing an environment of negative third-quarter growth (-0.1%), rising unemployment, and a contractionary composite PMI reading, they are under pressure to perform a dovish pivot as soon as possible," said Scope Markets' Joshua Mahony. "However, while the ECB are expected to cut rates in the face of sub 2% inflation, a March cut from the Bank of Canada would likely have to occur before reaching that key price target. This adds a greater degree of uncertainty, with markets looking for guidance over whether current expectations are justified or not."

On the macro front, mortgage applications rose 2.8% in the week ended 1 December, with refinancing applications jumping 13.9% amid sliding interest rates, according to the Mortgage Bankers Association. Refinancing applications were also 10% higher year-on-year. The increase comes as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances fell to 7.17% from 7.37% - the lowest level seen since August. New mortgage applications were down 0.3% on the week.

Still to come, ADP employment change figures were due out at 1315 GMT, while October goods trade balance data and nonfarm productivity numbers were slated for release at 1330 GMT.

In the corporate space, Box was under pressure in early trading after reporting third-quarter results that came in below expectations, while Toll Brothers traded higher after exceeding expectations on both the top and bottom lines.

Reporting by Iain Gilbert at Sharecast.com


Email this article to a friend

or share it with one of these popular networks:

Top of Page