Tuesday September 10th

10-09-2019

US stock futures point to slightly lower open as tech shares dip

U.S. stock index futures were set to open slightly lower Tuesday as tech shares resumed a decline that started in the previous session. At around 7 a.m. ET, Dow Jones Industrial Average futures fell 25 points, indicating a loss of 27 points at the open. S&P 500 and Nasdaq 100 futures were both also marginally lower. Shares of Facebook, Amazon, Netflix and Alphabet all fell at least 0.3% in the premarket. The Technology Select Sector SPDR Fund (XLK) slid 0.5% before the bell on light volume. The S&P 500 tech sector was one of the worst performers on Monday, sliding 0.7%. The sector’s decline pushed the broad index to close lower for the first time in four sessions. Ford Motor was the biggest decliner in the S&P 500, dropping 3.7%. The stock fell after Moody’s downgraded the auto maker’s credit rating to junk status, citing below-expectations profit margins and cash flow. The Dow posted its fourth straight day of gains Monday, on the back of renewed optimism in U.S.-China trade talks. The U.S. Treasury Secretary, Steven Mnuchin, said that there is a “conceptual agreement” around intellectual property theft with China. This is one of the most contentious issues between both countries. Meanwhile, Huawei dropped Tuesday one of its lawsuits against the U.S. This happened after some equipment seized by Washington nearly two years ago was returned to the company, CNBC reported. Huawei’s lawsuit drop is the latest sign that tensions between the U.S. and China are easing ahead of a meeting scheduled for Oct. 1. Investors will be looking ahead to a new Job Openings and Labor Turnover Survey (JOLTS), due at 10 a.m. ET. Earlier in the day, a small business data survey will be released. There is also Apple’s event on the radar, starting at 10 a.m. ET, where the tech giant is due to launch new products. Stocks in Asia were mixed on Tuesday as a data release showed Chinese producer prices in August falling to their worst year-on-year contraction in three years. Mainland Chinese stocks slipped on the day, with the Shanghai composite down 0.12% to about 3,021.20 and the Shenzhen component declining 0.37% to 9,964.93. The Shenzhen composite shed 0.112% to approximately 1,687.31. Meanwhile, Hong Kong’s Hang Seng index was largely flat, as of its final hour of trading. Elsewhere, the Nikkei 225 in Japan gained 0.35% on the day to 21,392.10, while the Topix index added 0.44% to close at 1,557.99. Over in South Korea, the Kospi also rose 0.62% to finish its trading day at 2,032.08. Oil futures rose for a fifth day, rising to their highest in almost six weeks, on optimism that OPEC and other producing countries may agree to extend output cuts to support prices. Brent was up 31 cents, or 0.5%, at $62.90 a barrel by 0544 GMT, while U.S. West Texas Intermediate (WTI) futures were 32 cents, or 0.6%, higher at $58.17 a barrel. Brent earlier climbed to its highest since Aug. 1, while U.S. crude rose to the highest since July 31. Gold dropped to a near one-month low on Tuesday to hold below the key $1,500 pivot, hit by a stronger dollar and an improved appetite for riskier assets supported by hopes of global economic stimulus. Spot gold was down 0.3% at $1,494.91 per ounce, after hitting its lowest level since Aug. 13, at $1,486, earlier in the session. U.S. gold futures slipped 0.5% to $1,503.20 per ounce.