US stock futures: S&P 500 on pace for fifth straight fall
New York (Nov 10) US stock futures pointed to a drop at the open Tuesday, putting the S&P 500 on track to fall for the fifth session in a row.
S&P futures ESZ5, -0.25% declined by 4.65 points, or 0.2%, to 2,068.25, while Dow Jones Industrial Average YMZ5, -0.92% futures shed 42 points, or 0.2%, to 17,633. Nasdaq 100 futures NQZ5, -0.45% lost 13.25 points, or 0.3%, to 4,639.50.
On Monday, the S&P SPX, -0.98% closed 1% lower, while the Dow DJIA, -1.00% fell 1%, or about 180 points, and turned negative for the year. Analysts blamed Monday’s drop on investors stepping away from stocks because a December interest-rate hike looks more likely, though others said the selloff did “not make a lot of sense.”
“If the Fed is going for a rate hike in December, many investors will now be cautious about buying into equities,” said Nour Al-Hammoury, chief market strategist at ADS Securities, in a note early Tuesday.
Individual movers: Shares in Rackspace Hosting Inc. RAX, -4.21% could gain in Tuesday’s session after the cloud-computing company delivered better-than-expected quarterly profit and revenue late Monday.
Synchrony Financial SYF, -4.30% also could rise Tuesday following news late Monday that it will take Genworth Financial Inc.’s GNW, +0.42% spot in the S&P 500 on Nov. 17.
Before the open, online retailer Wayfair Inc. W, +3.90% home builder D.R. Horton Inc. DHI, -2.14% Rockwell Automation Corp. ROK, -1.11% and Tribune Media Co. TRCO, -0.79% are among the companies scheduled to report quarterly earnings.
McDonald’s Corp. MCD, -0.34% could see active trade as the burger giant holds an investor meeting due to start at 1 p.m. Eastern Time.
Other markets: Japan’s Nikkei NIK, +0.15% closed at a two-and-a-half month high, but other Asian markets dropped as official data showed China’s inflation slowed in October, the latest sign of that country’s flagging domestic demand. European stocks SXXP, -0.50% were trading mostly lower, while crude oil CLZ5, +0.82% showed little change. Gold GCZ5, +0.45% was higher, copper HGZ5, -0.54% was off about 0.2%, and a key dollar index DXY, +0.09% gained modestly.
IEA on oil OPEC’s strategy of not limiting its oil output could help keep the price of Brent crude LCOZ5, +0.53% around $50 a barrel until the end of the decade, the International Energy Agency said Tuesday, though it noted $80 a barrel by 2020 is more likely.
Economic news: Moody’s on Tuesday warned of lackluster global economic growth, as well as authorities lacking “buffers to protect their economies from potential shocks.”
Overall, Tuesday isn’t due to provide a barrage of top-tier U.S. economic news, unlike other recent sessions that have been packed with notable releases. A reading on small-business optimism is slated to come out at 6 a.m. Eastern Time, followed by fresh figures for import prices at 8:30 a.m. Eastern and for wholesale inventories at 10 a.m. Eastern.
After the market’s close, Chicago Federal Reserve President Charles Evans is due to take part in a panel discussion in the Windy City about the U.S. government’s debt. The event begins at 5.15 p.m. Eastern.
Source: MarketWatch
