MARKET SNAPSHOT: U.S. Stocks Poised For A Steady Open, As Investors Watch For The Next Catalyst
May 22 2017 - 7:09AM
Dow Jones News
By Barbara Kollmeyer, MarketWatch
Huntsman, Ford among stocks in focus for Monday
U.S. stocks were poised for modest losses on Monday, as
investors watched for the next catalyst for markets, looking to
politics amid thin pickings in corporate news.
Dow Jones Industrial Average futures pulled back by 12 points to
20,775, while S&P 500 futures eased 2.25 points to 2,379.25.
Nasdaq-100 futures dipped 2 points to 5,651.25.
All major indexes rose on Friday, but the S&P 500 index and
the Dow fell 0.4% for the week. The Nasdaq Composite Index logged a
weekly fall of 0.6%.
With the bulk of earnings season over, investors will be keeping
an eye out for U.S. political headlines like the one last week that
triggered a sharp midweek plunge for stocks
(http://www.marketwatch.com/story/us-stock-futures-slide-as-concerns-over-trump-grow-2017-05-17).
President Donald Trump traveled to the Middle East
(http://www.marketwatch.com/story/trump-urges-muslims-to-fight-crisis-of-extremism-in-saudi-speech-2017-05-21)
this weekend, with the so-far smooth visit giving investors little
to immediately worry about at the start of the week. Trump is in
Israel on Monday.
Read:In the battle for control of the stock market, bulls may
have an edge
(http://www.marketwatch.com/story/stock-market-set-for-showdown-between-bulls-and-bears-2017-05-20)
That midweek dip was driven by reports that President Donald
Trump asked then-Federal Bureau of Investigation Director James
Comey to stop an investigation
(http://www.marketwatch.com/story/trump-denies-asking-comey-to-drop-flynn-investigation-2017-05-18)
into Russian meddling
(http://www.marketwatch.com/story/white-house-official-probed-over-russia-and-president-called-comey-nut-job-reports-say-2017-05-19)
into the U.S. election. And it has sown doubt that Trump will be
able to push through a pro-economic-growth agenda seen as driving
recent gains for stocks.
Investors will this week try to whether that selloff was
temporary or a "signal of something more sinister," said Michael
Stanes, investment director at Heartwood Investment Management, in
a note Monday.
He argued, though, that gains for stocks after the presidential
election are also due to improved global economic conditions and
fading disinflationary effects that started in summer 2016. The
fundamental backdrop hasn't changed, with the U.S. economy still on
a solid footing and other global economies steady, said Stanes.
"We recognize that we are in the latter part of the market cycle
and sentiment is likely to remain vulnerable to pressure points as
we move through the year," he said.
Read:White House to roll out budget proposal, cutting Medicaid,
assistance to the poor
(http://www.marketwatch.com/story/white-house-to-roll-out-budget-proposal-cutting-medicaid-assistance-to-the-poor-2017-05-22)
Fed speakers ahead: The Chicago national activity index for
April, due at 8:30 a.m. Eastern Time, is the only top-tier economic
report expected Monday. Later in the week, data on home sales and
the minutes of the Federal Open Market Committee meeting of May 3
will be highlights.
Read:Buoyant U.S. economy rides out rough political sea, but
more storms ahead
(http://www.marketwatch.com/story/buoyant-us-economy-rides-out-rough-political-sea-but-more-storms-ahead-2017-05-21)
Several Fed speakers are lined up for Monday, starting with
Philadelphia Fed President Patrick Harker. He is scheduled to give
a speech on the link between physical and economic well-being at
Jefferson College of Health Professions in Philadelphia at 10 a.m.
Eastern.
Minneapolis Fed President Neel Kashkari is expected to deliver
brief welcoming remarks at his bank's conference on opportunity and
inclusive growth at 10:30 a.m. Eastern.
Two speeches come after the market close. Fed Gov. Lael Brainard
speaks on "the roles of opportunity and inclusion in strengthening
the U.S. economy" in Minneapolis at 7:30 p.m. Eastern. Then Chicago
Fed President Charles Evans gives a speech on the economy at an OTC
derivatives conference in Shanghai, China, at 9:10 p.m.
Eastern.
Stock movers: Shares of Huntsman Corp.(HUN) rose nearly 6% in
thin premarket trade after news it will merge with Switzerland's
Clariant AG (CLN.EB) , creating a chemicals giant worth about $14
billion. Under terms of the deal announced Monday
(http://www.marketwatch.com/story/huntsman-clariant-to-combine-into-20-bln-company-2017-05-22),
Clariant shareholders will own 52% of the new entity and Huntsman
will own the rest.
Ford Motor Co.(F) shares were up about 3% premarket on reports
the automaker plans to replace Chief Executive Officer Mark Fields
with Jim Hackett
(http://www.marketwatch.com/story/ford-to-replace-ceo-mark-fields-with-jim-hackett-amid-pressure-on-profit-2017-05-22),
a Ford executive who leads a unit that works on autonomous
cars.
Other markets: Asian stocks were largely higher, outside of a
0.4% dip for the Shanghai . In Europe , stocks made modest
gains.
Read:Miners, oil share lead the FTSE 100 higher
(http://www.marketwatch.com/story/miners-oil-shares-lead-the-ftse-100-higher-2017-05-22)
(http://www.marketwatch.com/story/miners-oil-shares-lead-the-ftse-100-higher-2017-05-22)The
dollar moved higher across the board, while gold prices made modest
gains. West Texas Intermediate oil prices were climbing ahead of a
meeting
(http://www.marketwatch.com/story/oil-prices-climb-as-investors-wait-for-opec-meeting-2017-05-22)
later this week of the Organization of the Petroleum Exporting
Countries.
Read:4 potential outcomes for OPEC's crucial meeting
(http://www.marketwatch.com/story/4-potential-outcomes-for-opecs-crucial-meeting-2017-05-19)
(END) Dow Jones Newswires
May 22, 2017 06:54 ET (10:54 GMT)
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