Tuesday November 3rd

3-11-2015

Wall Street edgy after rally, more earnings ahead

U.S. stock index futures pointed to a lower open Tuesday, as investors paused for breath after the S&P 500 breached the 2,100-point level on Monday for the first time since August. Major earnings due on Tuesday before the market open included Mosaic, Archer Daniels Midland, Discovery Communications and Mobileye. Activision Blizzard, CBS, Cerner, Tesla Motors, Etsy, Fogo de Chao, Groupon, Herbalife, Newfield Exploration, U.S. Steel and Zillow are all due after the close. Data releases due on Tuesday include factory orders at 10:00 a.m. ET and vehicle sales. Stocks kicked off the first trading day of November with solid gains that took major averages to key levels. The Dow Jones Industrial Average closed in the green for 2015, joining the S&P 500 and the Nasdaq composite in positive territory for the year so far. The S&P 500 gained more than 1 percent to top 2,100 points. The last time the index crossed 2,100 in intraday trade was August 18, and its last close above that level was on August 17. Comments from Federal Open Market Committee members on Wednesday, with speeches from Chair Janet Yellen, Vice Chair Stanley Fischer and New York Fed President William Dudley will also be in focus. Traders will look for any hints on the timing and pace of an interest rate rise in the U.S. In Europe, stocks were mixed followingearnings from UBS and Standard Chartered. Switzerland's biggest bank UBS posted third quarter net profit ahead of expectations but said it was under investigation from authorities concerning accounts relating to FIFA. Net profit for the three months to end-September was 2.1 billion Swiss francs ($2.12 billion), up from 762 million francs a year earlier. Shares of the bank were down as much as 5 percent. Asian equities advanced on Tuesday, as the morale of investors got a boost from the overnight rally on Wall Street. However, markets in China fell short of broader advances across the region amid jitters surrounding a crackdown on illegal futures trading and ongoing anti-corruption investigations into companies such as Dongfeng Motor Group. China's key Shanghai Composite index closed down 0.2 percent after turning negative in the afternoon trading session. Among other indexes, the blue-chip CSI300 index erased earlier gains to fall 0.3 percent and the smaller Shenzhen Composite nudged down marginally. However, Hong Kong's Hang Seng index outpaced its mainland peers to climb 1.1 percent. Markets in Japan are closed for the Culture Day holiday. Oil recovered off earlier lows on Tuesday, but stayed well below $50, pressured by a glut in supply and worries about a fragile demand outlook. Brent crude futures were up 41 cents to $49.20 by 7:50 a.m. EDT (1150 GMT), under pressure from Russian production hitting a post-Soviet peak while China's demand outlook weakened. U.S. crude futures were trading at $46.47 per barrel, up 33 cents from their last settlement after falling in the previous session due to a rise in stockpiles. Gold slipped to a four-week low on Monday, easing for a fifth straight session as prices came under pressure from strength in the dollar and speculation that the U.S. Federal Reserve may press ahead with an interest rate rise this year. Spot gold was down 0.6 percent at $1,126.81 an ounce, having earlier touched its lowest since Oct. 5 at $1,130.20. U.S. gold futures for December delivery were down $9.70 at $1,126.20.