Stock Futures Point to a Higher Open for Wall Street, Dow Looks Set for a New Record
New York (June 19) Stock futures moved higher on Monday, June 19, as a recovery from a days-long selloff in major tech names stretched into the new week.
S&P 500 futures were up 0.3%, Dow Jones Industrial Average futures gained 0.34%, and Nasdaq futures added 0.68%.
The Dow secured a fresh record high on Friday, June 16, with just slight gains. The blue-chip index has hovered at all-time highs in recent weeks following an upbeat first-quarter earnings season and heading into the Federal Reserve's decision earlier in June to hike interest rates.
Tech stocks set up for another rebound on Monday in a reversal from a selloff early last week. The sector snapped back from steady gains secured since the beginning of the year after Goldman Sachs warned investors of overlooked risks. The FAANG stocks -- Facebook Inc. ( FB) , Apple Inc. ( AAPL) , Amazon Inc. ( AMZN) , Netflix Inc. ( NFLX) and Alphabet Inc. ( GOOGL) (formerly Google) -- were all higher in premarket trading Monday after taking the brunt of the selloff last week. Before the selloff, those five stocks had been responsible for two-fifths of the S&P 500's gains this year.
Boeing Co. (BA) moved more than 1% higher in premarket trading after announcing plans for a new, longer version of its 737 Max jet. The new jet from Boeing is expected to be ready for airlines by 2020. The company also said at the Paris Air Show that it has orders and commitments of more than 240 for the plane from at least 10 customers.
Britain kicked off its formal European Union exit talks Monday, nearly a year after the country voted to leave the bloc. Talks come at a time of high tension amid a backdrop of domestic political chaos, a weakening economy, a spate of deadly terrorist attacks and a fatal fire in a government-run housing project. Negotiators will meet in Brussels to form an agreement on Britain's financial commitments to the bloc, the so-called "Brexit Bill" before they take on the thorny issue of the U.K.'s trade relationship once it leaves the EU in 2019.
Britain's negotiating leverage is arguably at its weakest level in more than a decade after a shambolic snap election result for Prime Minister Theresa May, which surrendered her parliamentary majority and has left her floundering to cut a deal with lawmakers in Northern Ireland in order to stabilize her government, and the ongoing weakness of the economy in the wake of the Brexit vote.
Google announced that it will increase efforts to identify terrorist groups online. In a blog post Sunday, June 18, Google said that it would ramp up technology designed to identify "extremist and terrorism-related videos" and increase the number of independent experts to flag suspect videos on YouTube, among other efforts.
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Source: TheStreetr
