Tuesday February 5th

5-02-2019

Dow futures move higher ahead of earnings, Trump’s State of the Union speech

U.S. stock index futures moved higher Tuesday morning in premarket trade, as investors looked ahead to another set of corporate results and a key speech from President Donald Trump. At around 7:30 a.m. ET, Dow Jones Industrial Average futures indicated a gain of more than 80 points at the open. S&P 500 futures also indicated slight gains while Nasdaq 100 futures pointed to a small decline. Disney, Electronic Arts, Snap and Spirit Airlines are among the companies scheduled to report after the bell Tuesday. These reports come after Google-parent Alphabet reported better-than-expected earnings on Monday. However, shares of the tech giant fell 2 percent in the premarket as the company also revealed declining advertising prices and rising costs. Archer Daniels Midland fell 2 percent after reporting weaker-than-expected earnings and revenue. Estee Lauder, meanwhile, jumped 9.4 percent on better-than-expected results. The company also raised its 2019 earnings guidance. President Trump will address the Congress with his 2019 State of the Union Speech later Tuesday. Money managers will be looking for comments on trade and the broader U.S. economy. On the data front, investors are likely to monitor services PMIs and ISM non-manufacturing numbers due at 9:45 a.m. and 10 a.m. ET, respectively. Wall Street started the week on a positive footing with the Dow Jones Industrial Average closing more than 175 points higher. The positive sentiment was driven by corporate earnings, mainly in the tech sector. Japan’s Nikkei 225 gave up early gains and declined 0.19 percent to 20,844.45 while the Topix index added 0.1 percent to 1,582.88. Tuesday’s session in Asia followed overnight gains on Wall Street. Oil prices rose on Tuesday as investors expect U.S. sanctions on Venezuela and production cuts led by OPEC and its allies to head off any glut, but data showing a decline in U.S. factory orders weighed on the market. The supply optimism helped U.S. West Texas Intermediate (WTI) and Brent crude reach 2019 highs on Monday. WTI futures were up 46 cents, or 0.84 percent, at $55.02 per barrel by 0940 GMT. They touched their highest level in more than two months at $55.75 the previous day. International Brent crude futures were up 33 cents, or 0.53 percent, at $62.84 a barrel, down from a high of $63.63. Trading proceeded at lower volumes in parts of East Asia due to the Lunar New Year holiday. Gold was close to a near one-week low on Tuesday, as a stronger dollar and renewed interest in riskier assets dampened demand. Spot gold edged 0.12 percent higher to $1,313.31 per ounce by 7:50 a.m. ET, having hit its weakest since Jan. 29 at $1,308.20 in the previous session. Prices moved in a range of about $5. U.S. gold futures were down 0.12 percent at $1,317.70 an ounce.