Pages

Search This Blog

Translate

Search Tool




Oct 17, 2019

U.S. Market | Futures Indicator: Dow futures jump after a new draft Brexit deal is reached

Sam Meredith



U.S. stock index futures spiked Thursday morning after a draft Brexit deal was struck between the European Union and the U.K.
Around 5:50 a.m. ET, Dow futures indicating a positive open of more than 100 points. Prior to the Brexit reports, futures had been trading flat to lower. Futures on the S&P and Nasdaq were also higher.
Early Thursday,
U.K. Prime Minister Boris Johnson said “we have a great new Brexit deal” via Twitter. He called on British lawmakers to back the deal when it’s put before Parliament on Saturday. Meanwhile, European Commission President Jean-Claude Juncker tweeted that the deal was a “fair and balanced” one.
The Northern Irish Democratic Unionist Party (DUP) said earlier in the day that it could not support the British government’s Brexit plans “as it stands.”
Nonetheless, markets rallied on the Brexit reports, as the deal removed some investor uncertainty amid heightened concerns about the health of the global economy. On Wednesday, unexpectedly weak U.S. retail sales data fueled fears about a possible recession.
Global economic data points to slower growth, while the U.S. manufacturing sector is already contracting. Among the greatest of the worries plaguing markets is the ongoing U.S.-China trade war.
China emphasized today that the in order for the two countries to reach a final agreement on trade. The two economic giants have been embroiled in a trade dispute for more than a year, with each country applying tariffs on billions of dollars’ worth of goods from the other.

Data, earnings

Back in the U.S., investors are likely to closely monitor a flurry of economic data and earnings reports on Thursday.
The latest weekly jobless claims figures, housing starts and building permits for September, and the Philadelphia Federal Reserve’s manufacturing index for October will be released at 8:30 a.m. ET. Industrial production data for September will follow slightly later in the session.
On the earnings front, Morgan Stanley, Philip Morris, and Union Pacific are among some of the major companies set to report earnings before the opening bell.
Intuitive Surgical, Bank OZK, and First Financial are among those scheduled to report their latest quarterly figures after market close.
—CNBC’s Fred Imbert contributed to this report.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.