Friday June 21st

21-06-2019

Stock futures pause a day after the S&P 500 hit a record

U.S. stock index futures fell slightly on Friday as Wall Street took a breather a day after the S&P 500 notched a record high in the previous session. At 7:13 a.m. ET, Dow Jones Industrial Average futures were down 29 points, implying a loss of 20 points at the open. S&P 500 and Nasdaq 100 also traded lower. Stocks surged on Thursday as investors cheered the prospects of the Federal Reserve cutting interest rates as soon as July. The S&P 500 gained nearly 1% and posted a record close of 2,954.18. The broad index also reached an intraday record of 2,958.06. Equities were also on pace to post sharp weekly gains. The Dow and S&P 500 were both up more than 2% for the week entering Friday’s session. The Nasdaq was up more than 3%. The Fed said earlier this week it is ready to keep the current economic expansion going as trade tensions and weaker data dampen the U.S. economic outlook. This led investors to price in a 100% probability of a rate cut next month. The central bank’s announcement sent ripples across financial markets. The benchmark 10-year yield broke below 2% for the first time since November 2016. Gold prices hit their highest level since 2013. Crude prices also surged this week as tensions between the U.S. and Iran increased after a drone was shot down over Iranian airspace. President Donald Trump reacted to the incident by saying Iran made a “very big mistake.” U.S. oil rose 0.6% to $57.44 per barrel and is up more than 9% for the week. On the data front, investors will be keeping a close eye on June manufacturing and services PMI at 9:45 a.m. ET, as well as existing home sales for May due at 10 ET. Stocks in Asia were mixed on Friday as tensions in the Middle East continue to linger. In Japan, the Nikkei 225 closed 0.95% lower at 21,258.64, while the Topix index slipped 0.9% to finish its trading day at 1,545.90. Over in South Korea, the Kospi finished its trading day 0.27% lower at 2,125.62. Mainland Chinese stocks bucked the overall trend to rise on the day, with the Shanghai composite up 0.5% and Shenzhen component adding 0.87%. The Shenzhen composite also advanced 1.339%. In Hong Kong, the Hang Seng index declined around 0.5%, as of its final hour of trading. Gold prices steadied after shooting up to a near six-year high on Friday, surpassing the key $1,400 level on dovish signals from major central banks and rising tensions in the Middle East. Spot gold was up 0.1% at $1,388.60 per ounce at 0958 GMT, after earlier hitting its highest since Sept. 2013 at $1,410.78. U.S. gold futures dipped 0.3% to $1,392.1.