Monday May 7th

4-05-2018

Dow set to rise more than 100 points after Friday's rally

U.S. stock index futures rose ahead of Monday's open as investors looked to build on a sharp rally seen Friday. Around 7:35 a.m. ET, Dow Jones industrial average futures rose 90 points, indicating a higher open of 113.49 points. Nasdaq 100 and the S&P 500 futures also indicated a positive start to the session for their respective markets. The moves in premarket follow strong gains seen in the previous session. On Friday, the major averages all jumped more than 1 percent as shares of Apple hit an all-time high on news that Warren Buffett's Berkshire Hathaway bought 75 million shares of the company in the first quarter. On Monday, investors also looked to the energy markets as oil prices hit highs not seen since late 2014. Prior to the U.S. open, U.S. crude rose above $70 per barrel, while Brent hit $75.89 — a level not seen since November 2014 —before paring back some of its gains. Oil prices were on the rise on the back of concerns surrounding Venezuela's economic situation and the future of the Iran nuclear deal. The energy market and stocks in the sector will therefore be in focus during Monday's session. Looking to the central banking space, a number of members of the U.S. Federal Reserve are scheduled to speak at key engagements. Investors will also be keeping an eye out for any news surrounding the Iran nuclear deal. On Sunday, President Hassan Rouhani stated that Iran had a plan to counter any move made by the U.S. President when it comes to the 2015 nuclear agreement. Trump has set a deadline of May 12 for the deal to be changed or has said he could withdraw the U.S. from it. Iran's Rouhani went on to add yesterday that the U.S. would be "making a mistake" is it chose to exit the accord; Reuters reported. Asian markets closed mixed on Monday as investors digested trade concerns and U.S. jobs numbers, while U.S. crude topped the $70 mark for the first time since 2014 during late morning trade. The benchmark Nikkei 225 ended the day little changed: The index finished lower by 0.03 percent at 22,467.16, off its session low of 22,350.91. Over in Hong Kong, the Hang Seng Index gave up gains seen earlier to slip 0.1 percent by 3:00 p.m. Mainland stock indexes advanced, leading gains in the region for the day, with the Shanghai composite rising 1.48 percent to 3,136.63 and the smaller Shenzhen composite adding 1.85 percent to close at 1,822.18. Gold fell on Monday, snapping three days of gains as the dollar index rose back towards its 2018 peak, with the previous session's soft U.S. jobs data doing little to dampen optimism over the world's largest economy. That left traders betting that the Federal Reserve would press ahead with lifting U.S. interest rates this year, potentially cooling interest in gold because it increases the opportunity cost of holding non-yielding assets such as bullion. Spot gold was down 0.3 percent at $1,311 an ounce by 8:20 a.m. ET, having touched its highest since April 30 at $1,318.85. U.S. gold futures for June delivery eased by 0.28 percent to $1,311. The market was thinned by a national holiday in the United Kingdom, which closed trading desks in London.