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Jul 12, 2018

US futures point to a rebound after Dow snaps 4-day winning streak I CNBC

cnbc.com

US futures point to a rebound after Dow snaps 4-day winning streak

Fred Imbert, Silvia Amaro


U.S. stock index futures indicated a higher open on Thursday as trade fears declined amid a lack of retaliatory tariffs by China to the latest round of charges by the U.S.
Dow Jones Industrial Average futures rose 209 points, indicating a gain of 209.55 points at the open. S&P 500 and Nasdaq 100 futures also pointed to strong opening gains.
The U.S. unveiled on Tuesday a list targeting $200 billion worth of Chinese goods for a 10 percent import tariff. Stocks fell sharply on the news, with the Dow snapping a four-day winning streak.
Eric Freedman, chief investment officer at U.S. Bank Wealth Management, said the lack of an immediate response by China is a positive for the market. He also noted that, while these tariffs are aimed at several Chinese imports, "the mixture of goods is different from that of the first round of tariffs. Also, they don't come into effect until August."
The Chinese commerce ministry said Thursday that China has not been in touch with the U.S. about restarting trade talks, but noted that China does not want a trade war. A spokesman for the ministry said, however, China does not fear a trade war.
Investors also shifted their focus toward earnings and data, taking a breather from trade war concerns. On the earnings front, Delta Air Lines reported better-than-expected quarterly results. Wall Street expects strong numbers from Corporate America, with FactSet forecasting 20 percent earnings growth for the second quarter.
Weekly jobless claims fell to 214,000 last week and the consumer price index rose at its fastest pace in six years.