Tuesday December 17th

17-12-2019

Dow futures down slightly as stocks try to extend 4-day winning streak, Boeing shares slide

U.S. stock index futures pointed to a mixed open on Tuesday as Wall Street tried to build on a four-day winning streak that concluded with the major averages hitting record highs. Around 7:20 a.m. ET, Dow Jones Industrial Average futures were down 33 points, indicating a slip of 13 points at the open. S&P 500 and Nasdaq 100 futures also pointed to a muted start to the session. Dow futures were pressured by a 1% drop in Boeing shares. The stock fell in the premarket on news the aerospace giant is planning to suspend production of the 737 Max jet. On Monday, the Dow, S&P 500 and Nasdaq all reached all-time highs following a preliminary trade agreement between the world’s two largest economies. Late last week, President Donald Trump and Chinese officials announced that the U.S. and China had agreed to a so-called “phase one” agreement. It is understood that Beijing agreed to billions of dollars in agricultural purchases from the U.S., while Trump said he would not move ahead with a new round of planned tariffs, among other items. The deal, which is not yet signed, is set to be confirmed in the first week of January, according to U.S. Trade Representative Robert Lighthizer. Meanwhile, sterling fell more than 1% on Tuesday after reports suggested the British government was preparing to make it illegal for the post-Brexit transition period to be extended, leaving little time for a trade deal to be agreed with the EU. On the data front, housing starts and building permits for November, and a business leaders survey for December will all be released at 8:30 a.m. ET. Industrial production figures for November will be released at 9:15 a.m. ET, and the latest Job Openings and Labor Turnover Survey (JOLTS) is set to follow shortly thereafter. Mainland Chinese shares led major Asia markets in making gains by the close on Tuesday, as sentiment continues to be buoyed by a recent phase one trade deal reached between Beijing and Washington. The Shanghai composite bounced 1.27% to close at 3,022.42, and the Shenzhen composite jumped 1.30% to 1,708.41 while the Shenzhen component was up 1.45% to 10,306.03. Hong Kong’s Hang Seng index was also up 1.06% in its final hour of trade. In Japan, the Nikkei 225 added 0.47% to close at 24,066.12 while the Topix index gained 0.59% to 1,747.20. The Kospi in South Korea jumped more than 1% to close at 2,195.68. Oil edged further above $60 a barrel on Tuesday, supported by hopes that the U.S.-China trade deal will bolster oil demand in 2020 and the prospect of lower U.S. crude supplies. Brent crude, the global benchmark, rose 17 cents to $65.51 a barrel, while U.S. West Texas Intermediate crude added 17 cents to trade at $60.38. Gold held steady on Monday as the dollar eased and investors sought clarity on the fine print of the “phase one” trade deal between the United States and China, offsetting strong gains in the equities markets. Spot gold rose 0.02% to $1,475.85 per ounce. Prices gained 1.1% last week as the world’s two largest economies negotiated ahead of another potential round of tariffs. U.S. gold futures fell 0.07% to $1,480.5.