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Dec 6, 2016

U.S. Stock Market Future Indications by MarketWatch on December 6, 2016: Dow Reaches for a Fresh Record, But It'll Be a Struggle

www.marketwatch.com


marketwatch.com
 
Sara Sjolin
 
U.S. stock futures struggled for direction on Tuesday morning, with the Dow average fighting to push into fresh record territory a day after closing at an all-time high.


With no Federal Reserve speakers on tap ahead of next week’s rate-setting meeting, investors instead focused on the upcoming factory orders and productivity data as well as a slump in oil prices.
Futures for the Dow Jones Industrial Average YMZ6, +0.03%  were flat at 19,208, attempting to break into uncharted territory.

The benchmark on Monday closed at a record at 19,216.24 as the post-election rally marched on, and traders largely shook off the “’no” vote in Italy’s referendum. The move marked the 19th all-time high for the index logged in 2016.

“The resilience in financial markets to be able to absorb and adjust to surprises this year has been quite surprising in a lot of respects, having largely put the unexpected Brexit vote and Trump victory behind them, with the Dow once again putting in yet another record high yesterday,” said Michael Hewson, chief market analyst at CMC Markets, in a note.

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Futures for the S&P 500 index ESZ6, +0.05%  flattened out at 2,204, putting it within touching distance of a record high. The benchmark on Monday closed 0.4% off from a record close. Futures for the Nasdaq-100 index NQZ6, +0.08%  gained 3.50 points, or 0.1%, to 4,784 on Tuesday.
Economic data: The Fed is entering its “blackout” period on Tuesday, which means there won’t be any central bank speakers ahead of the monetary-policy setting meeting on Dec. 13-14. Markets are currently pricing in a 94.9% probability of a rate hike at the meeting, according to the CME FedWatch tool.

In data news, the foreign trade deficit for October will come out at 8:30 a.m. Eastern Time, along with productivity and labor costs figures for the third quarter.
At 10 a.m., factory orders for October are due.
See: MarketWatch’s economic calender
 
Oil slump: Following four straight day of gains, oil prices moved lower on Tuesday. West Texas Intermediate crude oil CLF7, -0.85%  lost 0.4% to $51.58 a barrel, while Brent LCON7, -0.30%  fell 0.2% to $54.83.

Investors are now waiting for a meeting between members of the Organization of the Petroleum Exporting Countries and non-OPEC countries on Saturday to discuss a deal to limit oil production.
Movers and shakers: Shares of TherapeuticsMD Inc. TXMD, +0.65%  soared 23% in thin premarket trade after the drug developer late Monday published an upbeat update on its menopause drug.

Shares of Ford Motor Co. F, +1.63%  could also be active after the car giant on Monday said it plans to raise $2.8 billion in new long-term financing.

Ahead of the bell, Toll Brothers Inc. TOL, +3.92%  reported a drop in fourth-quarter profit to 67 cents per share from 80 cents last year.

AutoZone Inc. AZO, -0.93%  is also slated to report earnings before the open.

Other markets: European markets were mainly higher, tracking gains from Asia.

The dollar traded in tight ranges against most other currencies, with the ICE Dollar Index DXY, +0.09%  marginally higher at 100.11.

Gold prices GCG7, -0.41%  dropped for a second day.