Monday October 10th

10-10-2016

Dow futures rise 100 points; US politics, oil in focus

U.S. stock index futures futures pointed to a higher open on Monday, as investors digest the latest from Sunday's second U.S. presidential debate, while keeping an eye on the oil price. Dow futures rose more than 100 points, while S&P and Nasdaq futures gained 11.75 points and 24.25 points, respectively. On Sunday night, presidential candidates Donald Trump and Hillary Clinton took to the stage at Washington University to participate in the second U.S. presidential debate ahead of the election in November, discussing topics from Obamacare to taxes and U.S. policy on the Syria civil war. Throughout the entire debate, U.S. stock index futures held a slightly higher position, with no evident winner coming out of the debate, according to several analysts' readings of the political event. "I think the market declared it a draw and has no more clue after debate then before, at least not in watching the S&P futures," said JJ Kinahan, chief strategist at TD Ameritrade. While investors deliberate over who came out on top and what this means for markets, oil prices are expected to keep them on edge on Monday. U.S. WTI last stood around $50.60 per barrel, while Brent hovered around $52.80. Columbus Day means it's set to be a quiet one on the data front, but investors are expected to continue digesting Friday's nonfarm payrolls report, which showed that the U.S. economy added 156,000 jobs during the month of September. Investors will likely shift their attention to a speech by Chicago Federal Reserve President Charles Evans, who is due to speak about the economy and monetary policy in Sydney, Australia at the Australian Business Economists Luncheon. The speech is due at 10 p.m. ET on Monday (1.00 p.m. local time on Tuesday).European stocks traded traded higher, while Asia-Pacific indexes were mostly mixed overnight.In South Korea, the Kospi finished up 0.15 percent, or 3.02 points, to 2,056.82, recovering from earlier losses of more than 0.53 percent. Mainland Chinese markets were higher, resuming trade on Monday after the Golden Week hiatus. The Shanghai composite closed up 1.45 percent, or 43.44 points, at 3,048.143, while the Shenzhen composite ended up 1.893 percent, or 37.775 points, at 2,033.383. Markets in Hong Kong, Japan and Taiwan were shut for public holidays. In the previous session, U.S. markets closed lower. No significant earnings reports are due out on Monday. Meanwhile, U.S. bond markets are closed for the day, as the U.S. celebrates Columbus Day. Gold rebounded on Monday from its weakest week since November after downbeat U.S. payrolls data on Friday dampened speculation of a near-term interest rate hike, and as Chinese buyers returned after the Golden Week holiday. Gold slid 4.5 percent last week, touching a four-month low of $1,241.20 an ounce on Friday, after a break of support at $1,300 unleashed a wave of technically-driven selling. Spot gold was up 0.3 percent at $1,260.70 an ounce, while U.S. gold futures for December delivery were up 0.8 percent at $1,263.90 an ounce.