Tuesday October 1st

1-10-2019

Dow set to rise 100 points as fourth quarter kicks off

U.S. stock index futures rose on Tuesday as Wall Street kicked off the final quarter of 2019. Around 8:50 a.m. ET, Dow Jones Industrial Average futures indicated a gain of more than 90 points at the open. S&P 500 and Nasdaq 100 futures also pointed to a solid open. Wall Street ended higher on Monday on the back of renewed optimism in U.S.-China trade talks. A spokeswoman for the U.S. Treasury said the White House “is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time.” This relieved some earlier fears raised by reports last week that the U.S. has been looking at restricting U.S. investments in China. Trade delegations from China and the U.S. are set to resume trade talks next week. Furthermore, traders are looking to hear from the World Trade Organization. The institution is set to decide on an aircraft subsidies dispute that could allow the U.S. to impose tariffs on Europe. On the data front, manufacturing Purchasing Managers’ Index numbers will be released at 9:45 a.m. ET; construction spending figures will be out at 10 a.m. ET, as well as the Dallas Federal Reserve service-sector numbers. On the earnings front, Stitch Fix is set to report after the bell. There are a number of Fed speeches, including St Louis Fed President James Bullard at 9:15 a.m. ET. Major markets in Asia Pacific closed higher on Tuesday, while Australia’s central bank cut its cash rate to a new record low. In Japan, the Nikkei 225 closed 0.59% higher to 21,885.24. The Topix index also advanced 0.96% to close at 1,603.00. Elsewhere, South Korea’s Kospi traded 0.45% higher to close at 2,072.42. Markets in China and Hong Kong are closed on Tuesday for holidays. Oil prices rebounded on Tuesday on reports that output from the world’s largest oil producers fell during the third quarter, although a resumption in Saudi supply and demand concerns kept a lid on gains. Brent crude futures rose 57 cents to $59.82 a barrel by 0852 GMT, while U.S. West Texas Intermediate crude was up 59 cents at $54.66 a barrel. Gold slid to a near two-month low on Tuesday as the dollar climbed to a multi-year peak on signs of strength in the U.S. economy, while hopes of a breakthrough in the U.S.-China trade dispute dampened interest in the metal as a haven from risk. Spot gold was down 0.4% at $1,466.58 per ounce, after touching its lowest since Aug. 6 at $1,458.50 earlier in the session. U.S. gold futures were flat at $1,472.90.