Friday November 16th

16-11-2018

Dow set to fall 100 points as chip makers drag down tech

U.S. stock-index futures indicated a lower open Friday a decline in semiconductor stocks pressured the overall technology sector. At around 7:20 a.m. ET, Dow Jones Industrial Average futures were down 131 points, indicating a lower open of 112.27 points. Nasdaq 100 and S&P 500 futures also pointed to lower opening trades. The VanEck Vectors Semiconductor ETF (SMH) fell 3.4 percent in the premarket after Nvidia reported weaker-than-expected revenue for its previous quarter. The company also posted disappointing guidance, sending the stock down nearly 18 percent before the bell. The weakness in chip stocks dragged the technology sector, with the Technology Select Sector ETF (XLK) falling 1.1 percent in the premarket. investors also fretted over political developments overseas amid heightened fears the U.K. could soon crash out of the European Union without a divorce deal. The British pound suffered its biggest one-day loss against the euro since October 2016 on Thursday, as a flurry of resignations rocked the government of U.K. Prime Minister Theresa May. In the previous session, major stock indexes snapped multi-day losing streaks as J.P. Morgan Chase led banks higher and iPhone maker Apple rebounded after dipping into bear market territory earlier this week. A number of economic data are expected on Friday. Industrial production numbers are expected to be released at 9:15 a.m. ET, followed by a Quarterly Services Report at 10 a.m. ET, a Kansas City Fed Manufacturing Index at 11 a.m. ET and the Baker-Hughes Rig Count at 1:00 p.m. ET. It was a mixed picture for markets in Asia on Friday, on the back of fresh uncertainties emerging from the U.K. overnight after multiple important ministers resigned from Prime Minister Theresa May's government. The mainland Chinese markets, which have been closely watched amid the ongoing trade spat between Washington and Beijing, recovered from earlier losses to see gains on the day.  The Shanghai composite was up 0.41 percent to close at around 2,679.11 and the Shenzhen composite rose 0.843 percent to finish at about 1,410.18. Meanwhile, Hong Kong's Hang Seng index was up 0.12 percent in the final hour of afternoon trade. Stocks in Japan struggled for gains. The Nikkei 225 slipped 0.57 percent to close at 21,680.34 while the Topix index shed 0.59 percent to end the trading day at 1,629.30. In South Korea, the Kospi rose 0.21 percent to close at 2,092.4. Oil rose on Friday on hopes that supply cuts will be agreed at OPEC's meeting on Dec. 6, but failed to recoup recent losses on oversupply concerns that have shaved more than a fifth off the Brent crude benchmark since early October. Brent was up 85 cents at $67.47 a barrel by 0929 GMT. It has been recovering for three sessions since hitting an eight-month low on Tuesday but is still on course for a weekly loss of about 4 percent. U.S. West Texas Intermediate (WTI) futures rose 55 cents to $57.01 a barrel after their steepest one-day loss in more than three years on Tuesday. Gold prices rose on Friday, having hit a one-week high earlier in the session, as investors sought safe-haven assets amid fears of a chaotic departure for Britain from the European Union. "The issues around Brexit have invigorated a little bit of safe-haven buying in the market ... The focus of the market has turned slightly to geopolitical issues at the moment," said ANZ analyst Daniel Hynes. Spot gold was up 0.2 percent at $1,214.93 per ounce, as of 0720 GMT. Earlier in the session, the bullion hit $1,216.79, its highest since Nov. 9. Prices are expected to end the week higher after declining nearly 2 percent last week. U.S. gold futures were flat at $1,215.3 per ounce.