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%.

Stock futures flat as auto tariff threat dulls Fed optimism

Global Stock Markets

Worries over U.S. trade protectionism, this time around car imports, weighed on Wall Street’s main indexes on Thursday, overshadowing optimism that the Federal Reserve may be more tolerant of rising inflation than previously expected.

The Trump administration launched a national security probe into car and truck imports that could lead to new tariffs, with Beijing calling the move an “abuse” of national security clauses and saying it would defend its interests.

The decision added to jitters over trade negotiations, reignited after Trump called for “a different structure” in any trade deal with China.

While shares of international automakers skidded on the tariff possibility, shares of U.S. automakers inched higher. Ford (F.N), General Motors (GM.N) and Tesla (TSLA.O) rose between 0.2 to 0.6 percent premarket.

At 7:34 a.m. ET, Dow e-minis 1YMc1 were down 27 points, or 0.11 percent. S&P 500 e-minis ESc1 were down 2 points, or 0.07 percent and Nasdaq 100 e-minis NQc1 were down 0.75 points, or 0.01 percent.

Wall Street posted small gains on Wednesday after minutes from the Fed’s latest meeting suggested higher inflation may not result in faster interest rate hikes.

Shares of Victoria’s Secret-owner L Brands (LB.N) fell 5.9 percent, while those of data storage equipment maker NetApp (NTAP.O) dropped 3.9 percent following the companies’ weak forecasts.

Williams-Sonoma (WSM.N) jumped 11.8 percent after the Pottery Barn owner posted strong quarterly results and gave a healthy forecast.

Initial jobless claims is expected to have fallen to 220,000 for last week, from 222,000 the week before. Data is due at 8:30 a.m. ET.

US Stocks - Future dip as Trump's comments spark trade talk uncertainty

Global Stock Markets

U.S. stock index futures were lower on Wednesday on fresh uncertainty over U.S.-China trade talks and ahead of a Federal Reserve report that would be watched for cues on pace of future interest rate hikes.

 

Futures down: Dow 0.73 pct, S&P 0.61 pct, Nasdaq 0.93 pct

Earlier optimism of trade talks progressing reversed on Tuesday after U.S. President Donald Trump said he was not pleased with recent trade talks between the United States and China and also raised doubts about the upcoming North Korea summit.

The comments tempered expectations that the United States and China would be able to avert a damaging global trade war.

The Federal Reserve's May meeting minutes, scheduled for release at 2:00 p.m. ET, will be scrutinized for indications of how many rate hikes are likely this year.

The U.S. central bank lifted borrowing costs in March and policymakers are split between those who expect another two rate hikes this year and those who forecast three, in the backdrop of low unemployment, moderate growth and rising inflation.

At 7:28 a.m. ET, Dow e-minis were down 182 points, or 0.73 percent. S&P 500 e-minis were down 16.5 points, or 0.61 percent and Nasdaq 100 e-minis were down 64.5 points, or 0.93 percent.

U.S. 10-year Treasury yields fell to eight-day lows as investors shunned risk. Twenty-eight of the 30

Dow Jones Industrial Average components were trading premarket and all indicated a lower open.
Target sank 5.6 percent after the retailer's quarterly profit rose less than expected as increasing investments dented margins.

Tiffany jumped 11.7 percent after the jeweler's quarterly results blew past estimates and the company also raised its full-year profit forecast and announced a $1 billion share buyback program.

On the economic front, new home sales numbers for April are expected to fall to 679,000 units, from 694,000 units the month before.

Stock index futures rise as U.S.-China trade talks progresses

Global Stock Markets

U.S. stock index futures rose on Tuesday on signs of further progress in trade talks between the United States and China as the world’s two largest economies pull back from the brink of a full-blown trade war. 

Washington neared a deal to lift its ban on U.S. firms supplying Chinese telecoms gear maker ZTE Corp (000063.SZ), sources said on Tuesday, and Beijing said it will steeply cut import tariffs for automobiles and car parts.

Shares of Ford (F.N), General Motors (GM.N), Tesla (TSLA.O), as well as the U.S.-listed shares of Ferrari (RACE.N) and Fiat (FCAU.N), were up between 0.8 percent and 2.4 percent in premarket trading.

The stock market has generally been volatile this year on a combination of factors including the fear of higher inflation spurring faster U.S. interest rate hikes and worries over a global trade war.

While investors may be relieved over the easing trade tensions, many U.S. government and industry officials view President Donald Trump is backing off from his tough stance against what they see as China’s unfair trade and market access practices.

At 7:26 a.m. ET, Dow e-minis 1YMc1 were up 55 points, or 0.22 percent. S&P 500 e-minis ESc1 were up 5 points, or 0.18 percent and Nasdaq 100 e-minis NQc1 were up 26.5 points, or 0.38 percent.

Micron (MU.O), which raised its quarterly forecast and led the chipmakers higher on Monday, jumped 5.3 percent after announcing a $10 billion share buyback.

Facebook (FB.O) edged up 0.3 percent ahead of Chief Executive Mark Zuckerberg’s defense of the company’s data practices to European lawmakers in Brussels. The testimony starts at 12:15 p.m. ET and comes three days before tough new European Union rules on data protection take effect.

The possibility of a ZTE reprieve boosted shares of optical component makers. Acacia Communications (ACIA.O), which got 30 percent of its 2017 revenue from ZTE, rose 4.6 percent, while Oclaro (OCLR.O) gained 1.4 percent.

Stock futures creeps higher with trade talks in focus

Global Stock Markets

U.S. stock index futures rose slightly in choppy trading on Friday as oil prices climbed, while investors kept a close watch on Sino-U.S. trade talks.

China denied it had offered to cut its trade surplus with the United States by up to $200 billion, hours after it dropped an anti-dumping probe into U.S. sorghum imports, but added that talks were constructive.

The world’s two biggest economies are seeking to bridge a divide on trade issues during the two-day talks in Washington that began on Thursday.

Oil prices continued their surge, with Brent crude LCOc1 on track for the sixth straight week of gains, boosted by strong demand, looming sanctions on Iran, plummeting Venezuelan production and Nigerian disruptions. [O/R]

At 7:19 a.m. ET, Dow e-minis 1YMc1 were up 58 points, or 0.23 percent. S&P 500 e-minis ESc1 were up 3 points, or 0.11 percent and Nasdaq 100 e-minis NQc1 were up 9.75 points, or 0.14 percent.

Investors have been fretting over rising interest rates, with the 10-year Treasury yield, the benchmark for global borrowing costs, holding above the key 3 percent level for the fourth day.

However, Bank of America Merrill Lynch said on Friday investors pumped $11.9 billion into global equities in the past week and also put money into bank loans, likely viewing the rise in U.S. bond yields as reflecting a robustly growing economy.

Among stocks, Applied Materials (AMAT.O) fell 4.9 percent after the chip gear maker’s disappointing forecast renewed concerns over slowing smartphone demand, while AMD (AMD.O) rose 2.6 percent after Cowen started coverage with an “outperform” rating.

Mattel shares gained 3.7 percent on a Wall Street Journal report that the company rejected Bratz dolls inventor Isaac Larian’s offer to merge his MGA Entertainment Inc with the Barbie doll maker.

US Stocks - Futures drop as Cisco disappoints; trade talks eyed

Global Stock Markets

U.S. stock futures dipped on Thursday after Cisco's disappointing forecast, while investors fretted about rising U.S. Treasury yields and looming trade talks between the United States and China.

The world's two economic powerhouses will resume trade negotiations over the next two days and officials from both sides have recently signaled that they are looking for a deal. is considering tariffs on U.S. exports worth $409 million in retaliation against U.S.-imposed steel and aluminum import tariffs, according to media reports. of Cisco Systems CSCO.O fell 3.9 percent in premarket trading after the company's disappointing forecast indicated that its transition to a software-focused business was a work in progress.

WMT.N was up 1.1 percent after the retailer's quarterly ecommerce sales growth slowed year-over-year, but was higher than the previous quarter. retailer's results come after Macy's (NYSE:M) M.N strong report helped power Wall Street on Wednesday and pushed the small-cap Russell 2000 .RUT to a record high.

At 7:23 a.m. ET, Dow e-minis 1YMc1 were down 22 points, or 0.09 percent. S&P 500 e-minis ESc1 were down 4.5 points, or 0.17 percent and Nasdaq 100 e-minis NQc1 were down 25.75 points, or 0.37 percent.

Yields on the 10-year Treasury notes US10YT=RR eked out a fresh 7-year highs, continuing a climb that was first triggered by Tuesday's retail sales data that signaled the U.S. economy is on a stronger footing in the second quarter.

US/Coca-Cola KO.N rose 1 percent after Barclays (LON:BARC) upgraded the stock to "overweight."

NetEase NTES.O dropped 9 percent after the Chinese internet company's first-quarter profit missed Wall Street estimates. the economic front, data at 8:30 a.m. ET is expect to show initial jobless claims rose 215,000 last week from 211,000 the week before.

Stock futures flat amidst rising U.S. yields and North Korea worries

Global Stock Markets

 U.S. stock index futures were little changed on Wednesday as investors assessed the impact of a surge in bond yields, while growing doubts about the U.S.-North Korea summit also weighed. 

North Korea threw next month’s summit between Kim Jong Un and President Donald Trump into doubt, threatening weeks of diplomatic progress by saying it may reconsider if Washington insists it unilaterally gives up its nuclear weapons.

A cancellation of the June 12 summit in Singapore adds to the jitters in the market, which is already dealing with China-U.S. trade tensions and inflation concerns.

The Dow Jones Industrial Average .DJI and the Nasdaq .IXIC recorded their biggest one-day percentage drop in three weeks on Tuesday after strong retail sales data stoked inflation concerns, sending the U.S. 10-year Treasury yield above the 3 percent level, its highest since July 2011. It was last at 3.0742 percent on Wednesday.

The latest report comes after markets took comfort from a recent string of data that pointed to softening inflation.

Reports on housing starts, industrial production and weekly jobless claims are all due later in the day.

At 7:19 a.m. ET, Dow e-minis 1YMc1 were up 17 points, or 0.07 percent. S&P 500 e-minis ESc1 were up 2.5 points, or 0.09 percent and Nasdaq 100 e-minis NQc1 were up 9.25 points, or 0.13 percent.

Among stocks, Micron (MU.O) rose 1.6 percent in premarket trading after RBC Capital Markets began coverage with “outperform” while AMD (AMD.O) gained 1.8 percent after a rating upgrade at Susquehanna.

Macy’s (M.N) rose 0.1 percent ahead of the retailer’s results.

Stock Futures rise up; Verizon & Nvidia Flu swing up

Global Stock Markets

Stock futures shed early losses and edged up into narrow gains Friday, as the Dow industrials looked stretch its rally to an eighth day, while benchmarks in Europe and Asia were set to extend their nearly two-month advances.

Futures for the Dow Jone industrial average held 0.2% above fair value. Verizon (VZ) was the early strong suit among blue chips, up 1.6% after an upgrade from JP Morgan. Nasdaq 100 and S&P 500 futures traded with fractional gains. Security software developer Symantec (SYMC) fell hard to the bottom of both indexes.

Earnings from late Thursday provided a hub for premarket trading, with Nvidia (NVDA), The Trade Desk (TTD) and Symantec (SYMC) all posting significant moves.

On the Dow, Verizon swung to an early early lead after JPMorgan upgraded the stock to overweight, from neutral. Verizon shares spiked, then sold off hard at the end of April, news of a $26 billion merger between SpringS and T-Mobil U.S. (TMUS). Shares ended Thursday 13% below their April high.

Nvidia will be a name to watch Friday, dipping nearly 3% after its late-Thursday earnings report and threatening to dent the strong performance among chipmakers for the week.  The graphics chip pioneer crushed fiscal first-quarter earnings and revenue expectations,and gave scond-quarter revenue guidance above consensus views. The company offered no EPS guidance for Q2. At the close of regular trading, the stock was in a buy range above a flat-base buy point at 254.60. The chart also can be interpreted as a double-bottom base with a 239.35 entry. Premarket moves can often change abruptly at the start of regular trade.

Most of the chip stocks listed on the Philadelphia Semiconductor Index appeared unaffected by the Nvidia flu. About a third of the index traded lower in premarket action.  Advanced Micro Devices (AMD) slipped furthest, showing a 1.2% decline. The index gained 4.9% for the week through Thursday, and was leaning toward its first two-week advance since March.

Symantec collapsed 25% as analysts downgraded the stock following its fiscal Q4 report late Thursday. Weak guidance damaged an otherwise stronger-than-expected quarterly performance. Symantec shares had climbed 17% in a seven-week advance since March, attempting to build the right side of a seven-month consolidation.

The Trade Desk spiked 23% in premarket trade. The online advertising services platform reported late Thursday its first quarter earnings growth accelerated to 89%, growth of revenue accelerated to a 61% increase. Both numbers easily topped analyst targets. Management's raised Q2 and full-year revenue and earnings guidance were well above consensus hurdles.

The IPO's premarket action suggested it could open Friday with a breakaway gap, past a 61.03 buy point in a gnarled-looking cup base. It's best to read up on buying breakaway gaps before trying to jump in. And keep in mind that not all premarket moves carry over into regular trade.

IBD 50 stock Zebra (ZBRA) bucked up 2.5% in early action. The maker of thermal printers and components closed Thursday in a buy range, above a 148.81 buy point in a third-stage flat base.
Crude Oil Holds Above $71, May Consumer Sentiment Coming Up

Energy stocks were largely quiet as crude oil prices blipped modestly higher early Friday. U.S. benchmark West Texas Intermediate traded up 0.1%, holding well above $71 per barrel. Crude gained 0.3% Thursday, with WTI settling at $71.36 a barrel, up 2.4% so far for the week. Prices could feel some effect on Friday when Baker Hughes (BHGE) releases its weekly rig-count survey at 1 p.m. ET.

US stock futures slide down ahead of Trump's decision on Iran

Global Stock Markets

U.S. stock index futures slipped on Tuesday as investors braced for President Donald Trump’s decision on whether to withdraw from the Iran nuclear deal.

 

A U.S. withdrawal would tighten economic sanctions on Iran, curtailing the country’s output that could bolster this year’s 13 percent oil rally.

Crude prices were down more than 1 percent - easing from 2014 highs, which had boosted Wall Street in the past two sessions - ahead of Trump’s decision at 1800 GMT (2:00 p.m. ET). [O/R]
“(Trump’s decision) has been so well covered, it’s probably all in the price by now.

And most recent commentary seems to be that after all the bluster, he may only partially withdraw from the deal,” said Frances Hudson, global thematic strategist at Aberdeen Standard Investments.

At 7:19 a.m. ET, Dow e-minis 1YMc1 were down 96 points, or 0.4 percent. S&P 500 e-minis ESc1 were down 11.25 points, or 0.42 percent and Nasdaq 100 e-minis NQc1 were down 33.5 points, or 0.49 percent.

Shares of Comcast (CMCSA.O) fell 1.5 percent premarket after Reuters reported the cable operator is preparing to make an all-cash offer for media assets that Twenty-First Century Fox (FOXA.O) has agreed to sell to Disney (DIS.N) for $52 billion.

Fox’s shares rose 3 percent. Disney, which is due to report its results after markets close, was down 0.4 percent.

Snap Inc (SNAP.N) rose 1.5 percent after hiring Tim Stone, who had led Amazon’s (AMZN.O) $13.7-billion integration with Whole Foods, as its chief financial officer.

Citigroup (C.N) rose 1.4 percent after activist investor ValueAct invested $1.2 billion in the bank, citing its low risk and reliable revenue.

Global stocks Stocks Seek to Shrug Off Tech Woes

Global Stock Markets

European stocks swung from a gain to a loss and back again and Asian equities nudged lower as investors sought to put the technology selloff behind them before a series of potentially market-moving events this week. The dollar rose with Treasury yields and the pound erased an advance.

Trading was mixed and muted in equities across both Europe and Asia following Monday’s selloff, which was sparked by a series of negative tech stories including Facebook Inc.’s data issues and a fatal accident involving an Uber Technologies Inc. self-driving car. 

Still, both the European gauge and U.S. stock futures reversed declines, and contracts for the Nasdaq 100 eventually edged higher.

Investors are struggling to rediscover their bullishness in the wake of the tech setbacks and with the Federal Reserve rate decision a day away. Reports that the White House plans to impose tariffs worth as much as $60 billion on Chinese products as part of a battle over safeguarding intellectual property added to the sense of caution. It would be the latest phase of President Donald Trump’s protectionist agenda and threatens to increase market fears of a trade war.

Elsewhere, sterling gave up its gains after data showed the U.K. inflation rate fell more than expected in February. West Texas Intermediate oil prices climbed. Russia’s ruble steadied after six days of losses.

Stocks
The Stoxx Europe 600 Index rose 0.4 percent as of 7:39 a.m. New York time.
Futures on the S&P 500 Index climbed 0.2 percent.
The MSCI Asia Pacific Index dipped 0.2 percent to the lowest in more than a week.
The U.K.’s FTSE 100 Index jumped 0.5 percent, the biggest increase in more than a week.
The MSCI Emerging Market Index increased 0.3 percent.

Currencies
The euro fell 0.3 percent to $1.2298.
The British pound dipped 0.1 percent to $1.4006.
The Japanese yen decreased 0.4 percent to 106.51 per dollar.
South Africa’s rand climbed 0.4 percent to 11.9657 per dollar, the biggest increase in more than a week.
The MSCI Emerging Markets Currency Index rose 0.1 percent.

Bonds
The yield on 10-year Treasuries rose one basis point to 2.87 percent.
Germany’s 10-year yield gained two basis points to 0.59 percent, the first advance in more than a week.
Britain’s 10-year yield rose one basis point to 1.445 percent.