Tuesday November 13th

13-11-2018

Stocks set to rebound, boosted by blowout Home Depot earnings and renewed trade talks

U.S. stock-index futures traded higher in the premarket Tuesday, helped by a strong quarter for retailer Home Depot and reports of renewed trade talks between the U.S. and China. As of around 8:25 a.m. ET, Dow Jones Industrial Average futures indicated a higher open of nearly 80 points, while S&P 500 and Nasdaq 100 futures were also in positive territory. Dow futures received a boost after Home Depot reported earnings that handily topped expectations. Sentiment was also lifted after The Wall Street Journal reported Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He had resumed trade talks. The report comes ahead of a meeting between President Donald Trump and Chinese President Xi Jinping. On Monday, equities dived with the Dow falling just over 600 points amid a confluence of worries including a sharp decline in Apple'sshare price, U.S. dollar strength and simmering global trade tensions. Shares of Apple closed 5 percent lower on Monday after Lumentum, one of the tech giant's facial recognition suppliers, cut its outlook and said it received a request from a large customer to "materially reduce shipments" of its 3-D sensing laser diodes. Stocks also fell on Monday after Bloomberg News reported that Trump intends to meet with his trade team on Tuesday to discuss a draft report on European auto tariffs. Separately, oil prices fell by around 1.2 percent Tuesday, with Brent crude slipping below the $70-per-barrel mark and U.S. West Texas Intermediate crude dropping below the $60 threshold. Trump on Monday said he hoped OPEC would not cut oil production in order to lift prices. Saudi Arabia's Energy Minister Khalid al-Falih had said earlier that day that OPEC agreed there was a need to cut oil supply next year by around 1 million barrels per day (bpd) from October levels. Stocks in Asia mostly declined on the back of the Dow Jones Industrial Average falling by more than 600 points overnight. Markets in mainland China held on to earlier gains during the trading session. The Shanghai composite rose 0.93 percent to close at 2,654.88 while the Shenzhen composite advanced 1.628 percent to about 1,383.92. Hong Kong's Hang Seng Index was largely flat during the final hour of trade. In other major Asian markets, stocks mainly saw losses. Japan's Nikkei 225 fell 2.06 percent to close at 21,810.52 while the Topix index saw losses of 2 percent to finish the trading day at 1,638.45. Gold prices edged higher on Tuesday as investors resorted to bargain-hunting after the precious metal fell to over one-month lows weighed down by a stronger dollar. Spot gold was up 0.2 percent at $1,202.57 per ounce at 0746 GMT. Prices fell to their lowest level since Oct. 11 at $1,199.72 earlier in the session. U.S. gold futures were flat at $1,203.8 per ounce.