Dow futures fall more than 150 points as Italian drama grabs the spotlight

Global Stock Markets

U.S. stock futures pointed to a sizable drop at the open Tuesday, as traders getting back to work after a three-day weekend were greeted by fresh Italian political drama.

Another Italian election looks likely within a few months, and it might lead the eurozone’s third-largest economy toward ditching the shared currency — which would represent quite a shakeup to the status quo.

Traders also were assessing efforts to revive a June summit between President Donald Trump and North Korean leader Kim Jong Un, as well as ongoing political uncertainty in Spain, where Prime Minister Mariano Rajoy was struggling to stay in power.

Dow Jones Industrial Average futures YMM8, -0.71% shed 165 points, or 0.7%, to 24,565, while S&P 500 futures ESM8, -0.70% lost 17.80 points, or 0.7%, to 2,700.50. Nasdaq-100 futures NQM8, -0.52% dropped 29 points, or 0.4%, to 6,931.25

Last week, the Dow DJIA, -0.24% advanced 0.2% for the week, the S&P 500 SPX, -0.24% added 0.3%, and the Nasdaq Composite COMP, +0.13% climbed 1.1%.

The three gauges are on track for May gains of 2.4% or more, as of Friday’s close. This month’s rally has put the Dow industrials back in the green for the year, up 0.1%.

See: Stocks are poised for their best May in 9 years, but this week is crucial
What’s driving markets?

U.S. stock futures are trading in the red alongside European equities SXXP, -1.44%  , which have been whacked by worries about a fresh Italian election, potentially in September.

An election looks to be in the cards, as an attempt to form a caretaker government led by International Monetary Fund veteran Carlo Cottarelli faces resistance. Cottarelli was put into that role on Monday by Italian President Sergio Mattarella, who had essentially blocked a coalition government of two big antiestablishment parties — the 5 Star Movement and the League.

Now those parties appear to be spurning Cottarelli, making him unlikely to win a vote of confidence in parliament. Instead, he likely will lead a caretaker government as prime minister only until another general election is called.

A March figure for the Case-Shiller home price index is due at 9 a.m. Eastern Time, and a May reading for the Conference Board’s consumer confidence index is slated to arrive at 10 a.m. Eastern. Economists polled by MarketWatch expect the confidence gauge to come in at 127.5.

On the Federal Reserve front, St. Louis Fed President James Bullard reportedly said early Tuesday in Japan that it was difficult for the American central bank to raise interest rates by a large margin when the Bank of Japan and the European Central Bank were pursuing accommodative policy.

The pan-European Stoxx Europe 600 Index SXXP, -1.40% fell 1.3%, while Italy’s FTSE MIB stock benchmark I945, -3.04% was down nearly 3%.

The euro EURUSD, -0.6796% recently changed hands at $1.1557, down from $1.1625 late Monday in New York, helping the ICE U.S. Dollar Index DXY, +0.75% inch up.

Gold futures GCM8, -0.09% edged higher, but U.S. oil futures CLN8, -1.47% fell more than 1%.

Wall Street points to higher opening as inflation worries ease

Global Stock Markets

U.S. stock index futures pointed to a higher opening for Wall Street on Monday, building on gains from last week’s strong February jobs data that allayed fears of rising inflation and faster interest rate hikes. 

Wall Street’s main indexes closed up nearly 2 percent on Friday after data showed U.S. job additions in February grew by a strong clip but wage growth was sluggish.

Traders of U.S. short-term interest-rate futures kept bets the Federal Reserve will stick to three rate hikes this year.

A month ago, the markets were gripped by fears of higher wages leading to price pressures, triggering a selloff that punctured the stock market’s strong rally in 2018.

However, the S&P and the Dow have nearly reclaimed those losses. The S&P 500 .SPX is just 3 percent below the record highs hit on Jan. 26 and the Dow .DJI is 4.8 percent away from its peak.

Rapid gains in technology stocks have already powered the Nasdaq .IXIC back to its record levels.

Last week’s gains were also supported by U.S. President Donald Trump’s softer stance on his decision to impose import tariffs on steel and aluminum by exempting Canada and Mexico.

At 7:01 a.m. ET, Dow e-minis 1YMc1 were up 100 points, or 0.39 percent. S&P 500 e-minis ESc1 rose 10 points, or 0.36 percent, and Nasdaq 100 e-minis NQc1 gained 41.75 points, or 0.59 percent.

Investors will pore over the next round of data on consumer prices and retail sales due this week for signs of rising price pressure.

Among stocks, shares of Orexigen Therapeutics (OREX.O) sank about 70 percent in premarket trading after the drugmaker filed for Chapter 11 bankruptcy protection. Lumentum Holdings (LITE.O) rose 5.5 percent after the laser and optical fiber specialist said it would buy optical components producer Oclaro (OCLR.O) for about $1.7 billion in a cash and stock deal. Oclaro jumped 25 percent.

Dow futures fall more than 100 points: traders brace for Powell's comments

Global Stock Markets

U.S. stock futures on Thursday pointed to a drop at the open, as traders waited for a fresh appearance before Congress by Federal Reserve chief Jerome Powell.

Dow Jones Industrial Average futures YMH8, -0.47% fell by 132 points, or 0.5%, to 24,906, while S&P 500 futures ESH8, -0.39% shed 11.90 points, or 0.4%, to 2,702.50. Nasdaq-100 futures NQH8, -0.35% gave up 28.25 points, or 0.4%, to 6,836.75.

On Wednesday, the Dow DJIA, -1.50% closed lower by 381 points, or 1.5%, while the S&P 500 SPX, -1.11% shed 1.1%, and the Nasdaq Composite COMP, -0.78% slumped 0.8%. The Dow gave up 4.3% in February, notching its biggest monthly drop in more than two years and paring its advance over the past 12 months to 20%.

Powell, whose comments Tuesday before a House panel helped send U.S. stocks lower, is due to testify to the Senate Banking Committee at 10 a.m. Eastern.

The new Fed boss on Tuesday highlighted ways that he personally thinks the U.S. economic outlook has strengthened. His comments helped spark a rally for the dollar and Treasury yields, as well as the selloff for equities.

A January report on core inflation, personal income and consumer spending is slated to hit at 8:30 a.m. Eastern, forecasting 0.3% growth for each metric. At that same time, a reading on weekly jobless claims is slated to hit, with economists expecting 226,000 claims.


Shares in L Brands Inc. LB, -8.27% fell 9% in premarket action after the Victoria’s Secret parent late Wednesday gave a quarterly outlook that appeared to disappoint Wall Street.

Salesforce.com Inc.’s stock CRM, +3.19% rose 3% premarket after the software company’s quarterly results beat expectations.

Shares in Best Buy Co. BBY, +5.60% , Kohl’s Corp. KSS, +1.68% and Barnes & Noble Inc. BKS, +1.12% are likely to see active trading as they’re among the companies expected to post earnings before the open.

European equity gauges SXXP, -1.03% traded sharply lower, while Asian markets finished mixed. Gold futures US:GCG8 and oil futures US:CLH8 lost ground, as the ICE U.S. Dollar Index DXY, +0.08% edged up.