Tuesday November 14th

14-11-2017

Futures point to a weak open as Wall Street gears up for key earnings, Fed speeches; tax concerns linger

U.S. stocks futures pointed to a relatively weak open Tuesday, as investors continued to pore over corporate earnings, while keeping an eye on news surrounding tax in the U.S. Dow Jones industrial average futures fell 25 points, while S&P 500 and Nasdaq 100 futures declined 4.75 points and 3.25 points, respectively. Home Depot, a Dow component, posted better-than-expected quarterly results across the board. Its stock briefly went up more than 2 percent before the bell before trading flat. TJX Companies, and Dick's Sporting Goods are also due to report earnings before the bell. In the political space, U.S. President Donald Trump will conclude his trip in Asia today. The U.S. incumbent said that he had made it evident during his visit that the U.S. was open to trading with other nations, on the condition that the policies were fair and reciprocal to the U.S., according to Reuters. Meanwhile, the future of a tax reform deal in the U.S. is expected to add uncertainty to markets throughout the trading day, as investors remain on edge over whether a reform will take place during 2017. On the data front, the NFIB's small business optimism index rose to 103.8 in October from 103.0 in September. A reading for producer prices in October showed a rise of 0.4%, topping expectations of an increase of 0.1% from economists polled by MarketWatch. Looking to central banks, Fed Chair Janet Yellen is currently taking part in a major central banking panel, titled "At the heart of policy: Challenges and opportunities of central bank communication." Overseas, European markets were under slight pressure during early market trade, while markets in Asia finished mostly in the red. The Nikkei 225 erased early losses to close flat at 22,380.01 as gains in most tech names balanced losses in trading houses and energy-related stocks. Across the Korean Strait, the Kospi lost 0.15 percent to finish at 2,526.64 as automakers and cosmetics names pared gains made in the last session. Greater China markets traded mixed. The Hang Seng Index was off 0.06 percent by 3:15 p.m. HK/SIN while mainland markets closed lower following the release of a slew of economic data released in the morning. The Shanghai Composite declined 0.52 percent to end at 3,429.97 and the Shenzhen Composite lost 0.95 percent to close at 2,025.78. Oil prices fell on Tuesday as the prospect of further rises in U.S. output offset some of the optimism that OPEC-led production cuts would tighten the balance between crude supply and demand. Brent crude futures fell 36 cents to $62.80 per barrel by 8:03 a.m. ET (1203 GMT), while U.S. West Texas Intermediate (WTI) crude was down 26 cents at $56.50. Gold hit a one-week low on Tuesday after U.S. Treasury yields touched fresh highs as investors priced in a rate hike next month, but the precious metal's losses were limited by rising uncertainty over the U.S. growth outlook. Spot gold was down 0.4 percent at $1,272.79 per ounce, having hit a one week low of $1,270.56. U.S. gold futures for December delivery fell 0.5 percent to $1,272.70.