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Jan 23, 2017

U.S. Stock Market Future Indications: Wall Street Stocks set to Slip as Trump Keeps Investors on the Back Foot


 
Barbara Kollmeyer
 
U.S. stock futures tilted south on Monday as global markets grappled with uncertainty over the policies of U.S. President Donald Trump and concerns he’ll pursue a protectionist agenda.

Investors were paring some risk, buying Japanese yen and driving the dollar lower. European equities and oil also fell. Earnings from Halliburton Co., McDonald’s Corp. and Yahoo Inc. later may also drive trading action.
Dow Jones Industrial Average futures YMH7, -0.11%  futures fell 9 points to 19,736, while S&P 500 futures ESH7, -0.21%  slipped 3.4 points to 2,262.50. Nasdaq-100 futures ESH7, -0.21%  eased 9.25 points to 5,049.
Need to know: ‘Bond King’ says look east if you’re nervous about the U.S. bull market under Trump
Stocks finished higher on Friday. The Dow Jones Industrial Average DJIA, +0.48%  closed up 0.5% to 19,827.25, while the S&P 500 SPX, +0.34%  climbed 0.3%, to 2,271.31 and the Nasdaq Composite COMP, +0.28%  gained 0.3%, to 5,555.33. All indexes fell for the week, as the Dow and S&P 500 logged second-straight weekly declines.
Trump has set up meetings with Canadian and Mexican leaders, and will host U.K. Prime Minister Theresa May on Friday to lay the grounds for a trade pact. The new president has said he will renegotiate the North American Free Trade Agreement.
“His inauguration speech on Friday was high on rhetoric, light on specifics but pretty combative with phrases like ‘American carnage stops right now’ and ‘America first’ grabbing the headlines,” said Jim Reid, Deutsche Bank strategist, and Craig Nicol, research analyst, in a note to clients.
Opinion: 10 popular stocks at risk from Trump’s ‘America first’ inauguration speech
Some fear the postelection rally for stocks may continue to unwind if Trump doesn’t start to get more specific about his fiscal plans.
Investors will be watching closely the first official Trump administration press briefing on Monday, following a weekend of protests across the U.S. against his presidency. Trump is scheduled to appear at 1:30 p.m. Eastern Time.
Read: All investment decisions must be re-evaluated as the Trump era dawns
There are no top-tier economic data reports on the docket Monday. See: MarketWatch’s economic calendar.
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Stocks to watch: Thirty-four S&P 500 components are scheduled to report earnings this week. Of the 54 companies that have reported so far, 74% are beating earnings estimates by a median of 5%, according to Fundstrat.
Halliburton Co. HAL, +2.01%  beat profit expectations, but posted a sales miss ahead of the open. McDonald’s Corp. MCD, +0.07%  will report results before the bell too, with Yahoo Inc. YHOO, -0.10%  due after the close.
See: Jeff Reeves on 6 tech stocks that could move big on earnings
The Securities and Exchange Commission has opened a probe into whether Yahoo should have reported its two big data breaches sooner to investors, The Wall Street Journal reported.
Foxconn Technology Group 2354, +3.07% may build a display-panel manufacturing facility in the U.S. as part of a joint venture with Apple Inc. AAPL, +0.18%  , worth up to 50,000 jobs, the company’s chairman said Sunday.
Apple, meanwhile, filed suit against Qualcomm Inc. QCOM, -2.42%  for $1 billion late Friday, alleging the company sought “onerous” terms in a chip deal.
AMC Entertainment Holding Inc. AMC, +1.18%  announced Monday a deal to buy Stockholm-based Nordic Cinema Group Holding AB for the equivalent of $292 million in cash.
Other markets: European stocks SXXP, -0.31%  drifted lower in early trade, while in Asia, the Nikkei 225 NIK, -1.29%  lost 1.3% on yen strength. The dollar DXY, -0.26%  moved lower across the board, while gold GCH7, +0.76%  was higher.
Oil prices CLH7, -1.16%  fell after a short-lived boost from Saudi Arabia, which voiced confidence that a deal to cut production is putting a dent on excess supply.