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Jan 9, 2017

U.S. Stock Market Future Indications - January 9, 2016: Dow Industrials Keep 20,000 in Sight With Fed Speakers Ahead:

marketwatch.com

Barbara Kollmeyer
 
U.S. stock futures indicated a slow start for Wall Street on Monday, but the Dow industrials may have another run at 20,000, after barely missing the psychologically important level in the last session.
Comments from a lineup of Federal Reserve speakers later today and the lead-in to earnings season could help provide impetus.


Dow Jones Industrial Average futures YMH7, -0.05%  was flat at 19,898, while S&P 500 futures ESH7, -0.06%  added 0.25 point to 2,271.75. Nasdaq-100 futures NQH7, +0.04%  inched up 5.75 points to 5,009.75.
A solid jobs report pushed the S&P 500 SPX, +0.35%   and Nasdaq Composite COMP, +0.60%  to record levels on Friday, while the Dow industrials DJIA, +0.32%  finished just shy of the key 20,000 level. The S&P 500 closed up 7.98 points to 2,276, and the Nasdaq advanced 33.12 points to 5,521.06.
The Dow industrials hit a session high of 19,999.63 on Friday, its closet yet to that big psychological level.
Read: What Dow 20,000 means for stock-market investors
“European equity markets have opened slightly weaker this morning after Asian markets unwound some of the gains overnight, but with Dow futures only moderately lower, there is still potential for the market to turnaround later this afternoon and have another run at the number,” said James Hughes, chief market analyst at GFKX, in a note to clients.
Fed speakers: Boston Fed President Eric Rosengren is due to speak at 9 a.m. Eastern in Hartford, Conn., followed by Atlanta Fed President Dennis Lockhart in Atlanta at 12:40 p.m. Eastern.
More central bank officials will step up throughout the week, including Fed Chairwoman Janet Yellen, who is set to appear at a town-hall meeting in Washington on Thursday at 7 p.m. Eastern.
A press conference from President-elect Donald Trump is also likely to attract investor attention. His first news conference since July is scheduled for Wednesday, Jan. 11.
“This would usually be a nonevent for the markets, as political wranglings and news conferences are often ignored by the major markets. However a Donald Trump press conference is not your normal political press conference,” said Hughes.
On the economic docket Monday, a reading on consumer credit for November is due at 3 p.m. Eastern Time, with bigger data to come later in the week, including retail sales.
Stocks to watch: Earnings season kicks off in earnest later this week with banks such as J.P. Morgan Chase JPM, +0.01%  and Bank of America Corp. BAC, +0.00%  due to report Friday. S&P 500 earnings for the fourth quarter are expected to rise 3% from the year-ago period, and the bulk of that will come from financials, said John Butters, senior earnings analyst at FactSet.
Read: Stock market investors focus on banks as earnings season begins
Shares of McDonald’s Corp. MCD, +0.89%  could be active after news it has signed a deal to sell a controlling stake in its China unit to an investor group let by one of China’s biggest state-owned companies, Citic Ltd.
Merrimack Pharmaceuticals Inc. MACK, -5.26%  said Sunday that it will sell its oncology assets, including pancreatic cancer drug, to French drugmaker Ipsen SA IPN, -0.63%  in a deal worth up to $1.025 billion.
The car industry may be in focus as Detroit’s annual trade show gets underway. Growing tensions between auto makers and President-elect Donald Trump could possibly overshadow the event.
General Motors Co. GM, -1.10%  Chief Executive Mary Barra told reporters Sunday that the company won’t move small-car production to the U.S. from Mexico. GM has been criticized by President-elect Donald Trump for importing some Chevrolet Cruze compact cars from a Mexico plant.
Other markets: The FTSE 100 UKX, +0.16%  bucked the downbeat European markets SXXP, -0.46%  mood as sterling fell, boosting certain U.K. stocks.
The pound GBPUSD, -1.0256%  was under pressure against the dollar after U.K. Prime Minister Theresa May indicated in an interview that her government plans a definitive break with the European Union, raising fears of a “hard Brexit.”
Asian markets ADOW, -0.05%  finished mixed. The Nikkei 225 index NIK, -0.34%  was closed for a holiday in Japan.
Oil prices fell after an update from Baker Hughes Inc. BHI, -0.61%  on Friday showed the number of rigs drilling for oil in the U.S. rose by four in the week ended Dec. 30 to 529.