Wednesday November 21st

21-11-2018

Dow set to rise 150 points as tech shares rebound from big sell-off

U.S. stock-index futures rose on Wednesday as major technology shares rebounded from steep losses earlier this week. At around 7:53 a.m. ET, Dow Jones Industrial Average futures indicated a gain of about 162 points. Futures on the S&P 500 and Nasdaq 100 were also relatively upbeat Wednesday morning. Facebook shares rose more than 1 percent in the premarket, while Amazon and Netflix both gained more than 2 percent. Apple and Alphabet climbed 1.3 percent and 1.2 percent, respectively. These tech shares, which make up the popular "FAANG" trade, have been under pressure recently. Through Tuesday's close, they were all down more than 20 percent from their 52-week highs, officially in a bear market. The sharp decline in tech helped send the Dow, S&P 500 and Nasdaq all down at least 3 percent for the week. U.S. stocks sold off for a second consecutive session on Tuesday, as energy shares dropped with oil prices, while retailers including Target and Kohl tumbled after weaker-than-expected earnings and forecasts. The latest bout of selling comes amid escalating concerns about global economic growth, with the tech-heavy Nasdaq closing at its lowest level in more than seven months Tuesday. Meanwhile, the S&P 500 and Dow ended the previous session at their weakest level since late October. On the data front, orders for American-made durable goods sank in October, but it was mostly due to a dropoff in demand for airplanes of all types. More notably, business investment was weak for the third month in a row. Orders fell 4.4% to mark the biggest decline in 15 months, the government said Wednesday. Economists surveyed by MarketWatch had forecast a 3.4% decline in orders for durable goods, or products made to last at least three years. Existing home sales data for October and a final reading of consumer sentiment for November are both scheduled to be released at around 10:00 a.m. The number of Americans who applied for unemployment benefits in the week before Thanksgiving rose to the highest level in four and a half months, potentially adding to fresh worries about the U.S. economy. Initial jobless claims, a rough way to measure layoffs, rose by 3,000 to 224,000 in the seven days ended Nov. 17. That was well above than the 215,000 forecast of economists polled by MarketWatch. Asia markets were mixed on Wednesday afternoon amid shaky investor confidence after steep losses on Wall Street overnight. Greater China markets gained, with Hong Kong's Hang Seng indexrising 0.23 percent in afternoon trade. The Shanghai composite rose 0.21 percent to close at around 2,651.51. The Shenzhen composite added 0.544 percent to end its trading day at about 1,386.43. Elsewhere in Asia, however, stocks were mainly lower. Japan's Nikkei 225 fell 0.35 percent to close at 21,507.54 and the Topix index shed 0.6 percent to end at 1,615.89. South Korea's Kospi fell 0.29 percent to close at 2,076.55. Oil bounced above $63 a barrel on Wednesday to claw back some of the previous day's 6 percent plunge, lifted by a report of an unexpected decline in U.S. crude inventories. Brent crude, the global benchmark, was up 92 cents to $63.45 per barrel at 0944 GMT and traded as high as $63.67. U.S. crudegained 98 cents to $54.41. Gold prices inched up on Wednesday in subdued trade ahead of a U.S. holiday amid weakness in the dollar. Spot gold was up 0.4 percent at $1,226.01 per ounce. U.S. gold futures rose 0.5 percent to $1,227 per ounce.