Wednesday November 16th

16-11-2016

Wall Street winning streak set to snap; Fed speakers, data in focus

U.S. stock index futures pointed to a lower open on Wednesday as trader's expectations of an eight-day winning streak waned. The Dow Jones Industrial average closed at an all-time high on Tuesday, in large part attributed to a surge in energy stocks, and extended its winning streak to seven days. On the data front, October PPI came in unchanged. Industrial production data are also due at 9:15 a.m., and NAHB homebuilders sentiment at 10 a.m. Treasury's international capital flows is released at 4 p.m. Several Federal Reserve officials are also scheduled to speak, including Philadelphia Fed President Patrick Harker speaks at 5:30 p.m. ET. St. Louis Fed President James Bullard spoke Wednesday morning, saying he would be surprised if the central bank did not raise rates next month. Minneapolis Fed President Neel Kashkari unveiled a plan to tackle "too big to fail" banks in another speech. On the earnings front, Lowe's and Target were among the firms reporting before the bell. In Europe, the pan-European Stoxx 600 index was around 0.47 percent lower on Wednesday. In Asia, the Shanghai Composite in China closed 0.05 percent lower, while the Nikkei 225 in Japan closed 1.1 percent higher. In oil markets, Brent crude traded at $46.68 a barrel on Wednesday, down 0.6 percent, while U.S. crude was around $45.43 a barrel, down 0.9 percent. U.S crude had risen almost 6 percent on Tuesday after investors' hopes were renewed that OPEC would implement a production cut at a key meeting later in November. Gold eased on Wednesday in line with a firmer dollar, but found support around $1,225 an ounce as a sharp rally in cyclical assets like stocks and copper following Donald Trump's election to the U.S. presidency ran out of steam. The metal has shed more than $100 an ounce from last Wednesday's post-election high on the back of a surge in bond yields and sharply higher appetite for risk. Spot gold was down 0.11 percent at $1,226.64 an ounce, while U.S. gold futures for December delivery were down $1.40 an ounce at $1,223.10. The dollar inched up to a fresh 11-month high versus a currency basket on Wednesday, though major banks sounded slightly more divided on its immediate prospects after a week-long rally driven by the post-election surge in U.S. bond yields.