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Sep 7, 2016

U.S. Stock Market Future Indications - September 7, 2016 Stocks Poised to Tread Water Ahead of Apple Event, Fed Book


www.marketwatch.com
marketwatch.com
 
Ellie Ismailidou, Sara Sjolin
U.S. stock futures on Wednesday were dipping in and out of negative territory as the market braced for a duo of Federal Reserve speakers and a key report on economic conditions, which could help gauge the Fed’s next steps on U.S. interest rates.

Investors also were eagerly awaiting a product announcement from Apple Inc. later in the day, where the tech giant is expected to unveil an update to its iPhone roster.
Futures for the Dow Jones Industrial Average YMU6, -0.02%  were down 4 points, or less than 0.1%, to 18,518, while those for the S&P 500 index ESU6, -0.07%  shed 2 points, or 0.1%, to 2,183. But futures for the Nasdaq-100 index NQU6, +0.11%  climbed 5 points, or 0.1%, to 4,832.
The muted action comes after U.S. stocks logged small gains on Tuesday when a disappointing services-sector report fueled expectations the Fed won’t raise interest rates at its Sept. 20-21 meeting. The S&P 500 SPX, -0.14%  and the Dow average DJIA, -0.14%  both ended the day 0.3% higher.
Traders may get more clues on the Fed’s view on rates this morning, when Richmond Fed President Jeffrey Lacker and Kansas City Fed President Esther George testify at the House Financial Services panel on ‘Governance, Monetary Policy and Economic Performance’ at 10 a.m. Eastern Time.
New Apple iPhone arrives amid sales slowdown

Apple newest iPhone, which the company will announce on Wednesday, comes to market as the company faces a global slowdown in sales of its smartphone. Photo: Apple CEO Tim Cook by Bloomberg News
The Fed’s report on economic conditions, the so-called Beige Book, comes out at 2 p.m., Société Générale analysts said.
“Given the declines in both the ISM factory and services surveys in August, comments from regional Fed banks about the degree of cooling in those sectors could aid in determining whether the weak ISM prints in August truly reflect weaker conditions,” they said in a note.
San Francisco Fed President John Williams late Tuesday said he still backs a rate increase “sooner rather than later”, repeating comments he made before the release of the disappointing August jobs report.
At 10 a.m., Labor Department figures on July job openings, known as the JOLTS report, are due.
See: MarketWatch’s economic calender
Movers and shakers: On the corporate front, all eyes were on Apple AAPL, +0.08% as it expected to unveil its iPhone 7 at an event in San Francisco at 10 a.m. Pacific Time, or 1 p.m. Eastern.
Apple shares were up 0.2% premarket. An analysis from UBS found that the tech major’s stock tends to trade lower leading into its flagship September event, then rebounds in the run-up to the actual release of the new hardware a few weeks later.
Read: How to get Apple’s new iPhone 7 free
Chipotle Mexican Grill Inc. CMG, +4.33%  jumped 5.8% in thin premarket trade after Bill Ackman’s Pershing Square Capital Management LP late Tuesday disclosed it has bought a 9.9% stake in the fast food chain.
Advanced Micro Devices Inc. AMD, -4.87%  lost 3.4% ahead of Wednesday’s opening bell, after late Tuesday announcing plans to raise more than $1 billion through a stock and debt offering.
Oil-related companies rose premarket as oil CLV6, +0.31% LCOX6, +0.21%  marched firmly higher ahead of key U.S. oil inventory data due later Wednesday. ConocoPhillips COP, +0.71%  rose 0.6% and SeaDrill Ltd. SDRL, +1.23%  climbed 0.4%.
Other markets: Stocks in Asia closed mixed, but Japan’s Nikkei NIK, -0.41%  was shoved 0.4% lower, pressured by a stronger yen.
European markets SXXP, +0.23%  were mostly higher, but struggled for firm direction.
Gold GCZ6, +0.05%  was flat, while the dollar DXY, -0.03% traded mixed against other major currencies.