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Nov 29, 2016

U.S. Stock Market Market Future Indications - November 29, 2016: U.S. Stocks on Pace for Muted Open as Analysts Argue Traders "Got Carried Away"

Victor Reklaitis
U.S. stock futures on Tuesday pointed to little change at the open, as analysts argued the post-election rally has run its course.

Investors are due to get a dose of Federal Reserve speeches and economic reports, including a reading on U.S. GDP.
S&P 500 futures  ESZ6, +0.12%  edged up by 4.45 points, or 0.2%, to 2,205.25, while Dow Jones Industrial Average futures YMZ6, +0.09% inched higher by 29 points, or 0.2%, to 19,109. Nasdaq-100 futures NQZ6, +0.10%  tacked on 9.50 points, or 0.2%, to 4,870.50.
On Monday, the S&P 500 SPX, -0.53%  and Dow DJIA, -0.28%  closed lower by 0.5% and 0.3%, respectively, as each gauge ended a four-session advance into record territory. The S&P and Dow are on track for monthly gains of 3.6% and 5.3%, respectively, as of Monday’s close.
In the past few weeks, repositioning for a Republican-controlled Washington sparked “big moves in the markets that are now starting to fade,” said Colin Cieszynski, chief market strategist at CMC Markets, in a note. “By last week, it was getting clear that traders had gotten carried away and become overly complacent, but the markets held up all the same.”
But now “reality has started to set back in, and traders have started to recognize that there are still a lot of short and long-term risks out there, and a lot of big events that could move the markets,” Cieszynski added.
One political risk is the Italian referendum on Sunday. While the ballot is on proposed constitutional reforms, it is generally being seen in the country as a vote of confidence in Prime Minister Matteo Renzi, with the risk that a victory for “no” will lead to his resignation and the dissolution of Italy’s government.
Read: This stat suggest bullish bets on U.S. stocks are getting crowded
And see: Why the rally by U.S. stocks is ‘just getting started’ — in one chart
Other markets: Oil futures CLF7, -2.87%  traded lower as doubts were growing that the world’s biggest crude producers will reach a deal Wednesday to cut global output. European stocks SXXP, +0.17% traded mostly higher, while Asian markets closed mostly lower. Gold futures GCZ6, -0.76%  pulled back, as a key dollar index DXY, +0.32% was little changed.
See: OPEC oil meeting — 7 things you need to know
Individual movers: Shares in Tiffany & Co. TIF, +0.10%  rose 2% in premarket action as the high-end jeweler posted quarterly results that topped expectations.
Shoe Carnival Inc.’s stock SCVL, -3.75%  fell 13% in thin premarket trading after the retailer late Monday posted weaker-than-anticipated quarterly results and cut its annual guidance.
Economic news: A reading on U.S. gross domestic product is slated to hit at 8:30 a.m. Eastern Time, with economists polled by MarketWatch forecasting 3.1% growth for the third quarter.
At 9 a.m. Eastern, investors are due to digest a September figure for the Case-Shiller home price index. Then a November number for consumer confidence is expected at 10 a.m. Eastern, with economists anticipating a reading of 102.5.
On the Fed front, New York Fed President William Dudley is scheduled to speak in Puerto Rico at 9:15 a.m. Eastern, talking about economic opportunities. Fed Gov. Jerome Powell is slated to deliver a speech at 12:40 p.m. Eastern, sounding off about the economy at an Economic Club of Indiana event.
Check out: MarketWatch’s Economic Calendar
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