Tuesday March 12th

12-03-2019

Dow futures dip after Monday's rally, Boeing slumps again

U.S. stock index futures indicated a mixed open on Tuesday as investors digested sharp gains from the previous session. At 8:41 a.m. ET, Dow Jones Industrial Average futures were down 47 points, indicating a loss of 30 points at the open. S&P 500 and Nasdaq 100 futures, meanwhile, pointed to slight gains. Boeing shares fell more than 3 percent in the premarket, adding to steep losses from Monday's session and pressuring Dow futures. Boeing fell after Edward Jones downgraded the stock to hold from buy, citing a possible "delay in orders" after two 737 MAX jets crashed in less than 6 months. Stocks rose on Monday as strong gains in tech firms like Apple and Facebook offset a steep decline in Boeing. Better-than-expected January U.S. retail sales numbers also gave a boost to confidence, after a raft of weak December data. Monday's moves came after U.S. major indexes posted their worst weekly performances of 2019 amid growing concerns of a possible economic slowdown around the world. Stocks in Asia Tuesday got a slight boost after British Prime Minister Theresa May got legally binding assurances from the EU over the most contentious part of the deal, the Irish backstop. Investor attention will be firmly focused on the Brexit deal in the U.K. when British Members of Parliament (MPs) vote Tuesday evening on whether to accept or reject May's deal ahead of the scheduled March 29 departure from the EU. In Japan, the Nikkei 225 rose 1.79 percent to close at 21,503.69, after surging past 2 percent earlier. The broader Topix rose 1.52 percent to finish at 1,605.48. The Shanghai composite jumped over 1 percent to close at 3,060.31, while the Shenzhen composite bounced 1.67 percent to finish at 1,695.80. Hong Kong's Hang Seng index traded up 1.44 percent during the final hours of the trading day. South Korea's Kospi traded higher by 0.89 percent to close at 2,157.18. Oil rose to around $67 a barrel on Tuesday, supported by Saudi Arabia's plan for further voluntary supply curbs in April and by a cut in oil exports from Venezuela due to a power outage. Saudi Arabia, seeking to drain a supply glut and support prices, plans in April to keep its oil output well below the level required of it as part of an OPEC-led supply cutting deal, a Saudi official said on Monday. Brent crude, the global benchmark, rose by 34 cents to $66.93 a barrel. U.S. West Texas Intermediate crude added 27 cents to $57.36. Gold prices rose on Tuesday as the dollar weakened against the pound after the European Commission accepted amendments to the UK's Brexit deal, although gains were limited as the agreement also buoyed sentiment for riskier assets. Spot gold rose 0.1 percent to $1,294.90 per ounce as of 0756 GMT, while U.S. gold futures added 0.3 percent to $1,294.70 an ounce.