Thursday November 9th

9-11-2017

Dow futures fall 109 points, retail stocks slide after earnings

U.S. stocks futures pointed to a lower open Thursday, as the retail sector took a hit following disappointing quarterly earnings. Dow Jones industrial average futures fell 109 points, while S&P 500 and Nasdaq futures pulled back 14.5 points and 52 points, respectively. Kohl's shares fell nearly 10 percent in the premarket after the company reported weaker-than-expected earnings. Macy's shares also declined after posting a bigger-than-expected decline in same-store sales. Tech stocks also declined in the premarket, with the Technology Select Sector SPDR exchange-traded fund sliding 0.8 percent. Earnings set to come out after the bell include Disney, Nvidia, News Corp., Hertz Global, Lionsgate, Redfin and Equifax. Weekly jobless claims for the week ended Nov. 4 rose by 10,000 to 239,000, but the more stable monthly average of claims decreased by 1,250 to 231,250 to the lowest level since March 1973. That release will be followed by a reading on wholesale inventories for September at 10 a.m. Eastern. Politics is expected to be at the back of investors' minds as U.S. President Donald Trump continues his journey across Asia. In China, the U.S. incumbent pressed Beijing on Thursday to do more when it comes to reining in North Korea. Leaders from both countries also commented upon trade ties, and announced the signing of around $250 billion in commercial deals between U.S. and Chinese companies, according to Reuters.Overseas, European stocks slipped into the red during early market trade, while markets in Asia delivered a relatively mixed performance by the close. The Nikkei 225, which had climbed some 2 percent to trade above the 23,000 mark in the morning, edged down 0.2 percent to close at 22,868.71. The broader Topix index finished the session 0.25 percent lower after touching levels not seen since 1991 earlier in the day. Across the Korean Strait, the Kospi shed 0.07 percent to close at 2,550.57. Hong Kong's Hang Seng Index rose 0.83 percent by 3:11 p.m. HK/SIN. Mainland markets, meanwhile, closed moderately higher: The Shanghai Composite climbed 0.36 percent to end at 3,427.79 and the Shenzhen Composite advanced 0.74 percent to close at 2,028.69. In the previous session, all major U.S. indices eked out gains by the close; however, banks broadly dropped amid concerns that the recent Republican electoral losses could impact the party's push to reform the U.S. tax code. Oil prices steadied just below two-year highs on Thursday, supported by supply cuts by OPEC and other major exporters including Russia. Benchmark Brent crude oil was unchanged at $63.49 a barrel by 0840 GMT. On Tuesday, Brent reached an intra-day high of $64.65, its highest since June 2015. U.S. light crude was steady at $56.81, not too far off this week's more than two-year high of $57.69 a barrel. Gold prices edged higher on Thursday, after marking a near three-week high in the previous session, as the dollar eased while palladium hit a fresh peak since February 2001. Spot gold rose 0.2 percent at $1,283.91 per ounce at 0844 GMT. On Wednesday, it rose 0.4 percent and touched its highest since Oct. 20 at $1,287.13 an ounce. U.S. gold futures for December delivery were up 0.1 percent at $1,284.90.