By Barbara Kollmeyer, MarketWatch
Deere, Gap, Applied Materials among potential moving stocks
U.S. stock futures indicated Wall Street could log a
second-straight winning session on Friday, helped by a dearth of
dramatic news headlines out of Washington, although the week is
likely to end as a losing one for equities.
Dow Jones Industrial Average futures rose 45 points, or 0.2%, to
20,690, while S&P 500 futures rose 7.4 points, or 0.3%, to
2,371. Nasdaq-100 futures added 17.5 points, or 0.3%, to
5,647.25.
U.S. stocks closed higher on Thursday
(http://www.marketwatch.com/story/fragile-start-ahead-for-us-stocks-as-political-concerns-weigh-heavy-2017-05-18),
buoyed by positive data and gains for tech stocks. The DJIA and
Nasdaq Composite Index each ended the session up 0.7%, while the
S&P 500 index closed 0.4% higher.
For the week, however, all three indexes are looking at losses
of around 1%, as investors have increasingly questioned whether
U.S. President Donald Trump can deliver on his economic stimulus
promises.
The bulk of the weekly losses came Wednesday, after a report
Trump in February asked then-Federal Bureau of Investigation
Director James Comey to stop an investigation into Russian
interference into the U.S. election. Some investors have questioned
whether Trump will even finish his term.
Opinion:Market sentiment during Watergate shows how stocks might
react to Trump
(http://www.marketwatch.com/story/market-sentiment-during-watergate-shows-how-stocks-might-react-to-trump-2017-05-19)
"This week political risk has caught up on the market but it's
still unclear whether it has any legs," wrote Deutsche Bank
strategist Jim Reid and research analyst Craig Nicol in a note to
clients Friday.
"Whether this latest Trump bout of volatility lasts depends on
what Mr. Comey really has on the president, but there wasn't much
new news to report on the story yesterday which helped U.S.
equities to recover," said the Deutsche Bank team.
Worth noting, they said, was that for all the shock waves that
have rattled markets this week, the S&P 500 is still only 1.67%
away from all-time intraday highs notched Tuesday, along with a
roughly 1% weekly loss.
Observers said investors will be closely watching potential
developments on the controversy next week. Lawmakers have asked the
FBI to turn over the notes Comey said he made from his meetings
with Trump by next week, and a congressional hearing on the matter
is due to take place, at which the former FBI head has been asked
to testify.
Read:Why the White House should worry: Special counsels usually
result in criminal charges
(http://www.marketwatch.com/story/why-the-white-house-should-worry-special-counsels-usually-result-in-criminal-charges-2017-05-18)
Once again, there are few data points to distract investors from
the political roller coaster. The first-quarter advance services
report is due at 10 a.m. Eastern Time.
Ahead of that, at 9:15 a.m. Eastern, St. Louis Fed President
James Bullard is due to give a speech on the economy and monetary
policy at the Association for Corporate Growth at Washington
University in St. Louis.
Moving stocks: Deere & Co.(DE) , Foot Locker Inc. (FL) and
Campbell Soup Co.(CPB) will report results ahead of the opening
bell.
Gap Inc.(GPS) could be on the rise after solid first-quarter
earnings
(http://www.marketwatch.com/story/gap-shares-rally-on-sold-first-quarter-earnings-2017-05-18),
which lifted shares by around 6% in late trading Thursday. Also in
the retail sector, Ross Stores Inc. (ROST) got a late boost of
around 3% after earnings and sales met forecasts
(http://www.marketwatch.com/story/ross-shares-higher-after-eps-beats-expectations-sales-meet-forecast-2017-05-18).
Read:Only two S&P 500 companies passed this
sales-and-earnings test
(http://www.marketwatch.com/story/only-two-sp-500-companies-passed-this-sales-and-earnings-test-2017-05-11)
Shares of Applied Materials Inc.(AMAT) could be in for premarket
gains, after a nearly 3% rise in late trading as the
microchip-materials maker's results and outlook topped Wall Street
estimates
(http://www.marketwatch.com/story/applied-materials-shares-rise-on-earnings-beat-strong-outlook-2017-05-18).
Read:Bill Ackman has 'something to prove' after Valeant mistake
(http://www.marketwatch.com/story/bill-ackman-has-something-to-prove-after-valeant-mistake-2017-05-18)
(http://www.marketwatch.com/story/bill-ackman-has-something-to-prove-after-valeant-mistake-2017-05-18)Other
markets: European stocks saw gains across the board
(http://www.marketwatch.com/story/european-stocks-start-digging-out-of-trump-inspired-rout-2017-05-19),
with the FTSE 100 index
(http://www.marketwatch.com/story/uk-stocks-break-2-day-losing-streak-after-pounds-mini-flash-crash-2017-05-19)
breaking a two-day losing streak. In Asia , stocks finished mostly
higher.
The dollar traded lower across the board , with the British
pound recapturing the $1.30 level
(http://www.marketwatch.com/story/the-pound-looks-set-for-significant-further-upside-now-that-its-regained-130-2017-05-18)
it lost late Thursday after a mini "flash crash," which sent it to
as low as $1.2888 within seconds.
Read:The pound looks set for 'significant further upside' now
that it's regained $1.30
(http://www.marketwatch.com/story/the-pound-looks-set-for-significant-further-upside-now-that-its-regained-130-2017-05-18)
Gold prices were down modestly, while oil prices added to gains,
with West Texas Intermediate crude prices tapping the $50-a-barrel
mark
(http://www.marketwatch.com/story/optimism-ahead-of-opec-meeting-drives-further-gains-for-oil-2017-05-19).
(END) Dow Jones Newswires
May 19, 2017 06:08 ET (10:08 GMT)
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