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Stock futures fall after record close for S & P 500, Dow



Stock index futures declined somewhat on Thursday as doubts over the prospect of a so-called Phase 1 trade deal between the US and China increased, suggesting a softer start to Wall Street the day after the Dow Jones Industrial Average and the S & P hinted 500 each made a record.

How are important indices traded?

Dow futures

YMZ19, -0.14%

lost 60 points or 0.2% to trade at 27,702 while S & P 500 futures

ESZ1

9, -0.19%

were 3,088.25, down 7.6 points or 0.3%. Nasdaq 100 futures

NQZ19, -0.25%

dropped 25.5 points or 0.3% to 8240

On Wednesday, the Dow gave way

DJIA, + 0.33%

surged 92.10 points, or 0.3%, ending in a record of 27,783.59, while the S & P 500

SPX, + 0.07%

posted a gain of 2.2 points or 0.1% and finished the race at 3,094.04, also marking a record end. The Nasdaq composite

COMP, -0.05%

missed its own record, dropping 3.99 points or less than 0.1% to 8,482.10.

What drives the market?

The prospect of a trade agreement between the US and China remains the main factor in a rally that has led to a record high in US stocks over the past five weeks.

Lately there has been a tremendous hype about the progress that has been made, but now the talks seem to be getting hit on the road, "said David Madden, market analyst at CMC Markets UK, in a note.

The Chinese Ministry of Commerce said that the US and China held a "thorough" discussion on the Partial Trade Agreement, and stressed that tariff cancellation was important in concluding an agreement.

The Wall Street Journal reported Wednesday that talks between the US and China have stalled over farm purchases. Beijing resisted setting a hard figure in the text of the agreement, while President Donald Trump claimed that China had agreed to buy $ 50 billion billions of products a year. News reports also highlighted a tariff dispute in which Beijing allegedly insisted that existing tariffs be cut back while the White House resisted.

In the US political news, investors wiped out the first day of a public impeachment investigation in Ukraine, in which the acting ambassador to Ukraine testified that Trump was asking about the state of the Ukrainian investigation against former Vice President Joe Biden a day after pressure on the President of Ukraine to initiate this investigation, electoral issues had advanced.

Read: The stock market reaches record highs, even though Trump's impeachment hearings enter a new phase – here's the reason why

In US economic news, US initial jobless claims rose in the US Week to Nov. by 14,000 to 225,000. 9, a high of almost five months, and about the 215,000 expected by market surveyed economists, but the data may be a seasonal anomaly. Regardless, the US producer price index rose 0.4% in October versus September, exceeding expectations by 0.3%. Excluding volatile food and energy products, wholesale prices rose 0.3% month-on-month. Wholesale 12-month inflation fell from 1.4% to a three-year low of 1.1%.

Federal Reserve Chairman Jerome Powell is scheduled to testify before the House Budget Committee at 10 am Eastern. Powell, who appeared before the Joint Economic Committee on Wednesday, reiterated that the Fed would need a major change in the conditions for a policy change.

Powell will also be joined by US Federal Reserve Chairman Charles Evans and US Federal Reserve Deputy Chairman Richard Clarida at 9:10 am Eastern Time. St. Louis Fed President James Bullard will speak at 11.20, while New York Fed President John Williams will speak at 12.00.

Stocks to Watch

Stocks of Walmart Inc .

WMT, + 1.56%

posted an increase of 1.9% in the premarket action, after the retail giant and the Dow component surpassed third-quarter earnings expectations and sales in the same business rose.

other Dow component Cisco Systems Inc.

CSCO, + 0.19%

recorded pre-market losses of more than 5.6% after the company closed after the closing bell on Wednesday had announced disappointing results.

See: Cisco Confirms Fears of "Broad" Mitigation of Technology Spending

Activist investor Carl Icahn urges the planned merger of Xerox Holdings Corp.

XRX, ] + 0.40%

and HP Inc.

HPQ + 0.00% .

Icahn holds a 10.6% interest in Xerox and told the Wall Street Journal on Wednesday that it also owns a 4.24% interest in HP worth approximately $ 1.2 billion that has not previously been reported was.

Shares in Viacom Inc

VIAB, -2.24%

rose 2.3% on Thursday in the premarket after the media conglomerate reported fourth quarter earnings and revenues that exceeded Wall Street expectations.

How are other markets trading?

The yield on the 10-year US Treasury note

TMUBMUSD10Y, -2.93%

slipped 3.7bps to 1.832% due to weaker economic data from Asia, leading to a 3.9bps decline on Wednesday amid concerns over trading was triggered.

On the commodity markets the price of a barrel of West Texas Intermediate brand for delivery in December

CLZ19, + 0.91%

surged 36 cents, or 0.6%, to $ 57.48 before US crude oil inventories and gold prices were counted by the government

GCZ19, + 0.36%

increased $ 6 or 0.4% to $ 1,469.50 an ounce.

The US dollar remained virtually unchanged, according to the ICE US Dollar Index

DXY, -0.01% .

In Asia, stocks traded mostly lower overnight, with the Japanese Nikkei trading overnight

NIK, -0.76%

with a drop of 0.8%, Hong Kong's Hang Seng Index

HSI, -0.93%

minus 0.9% and the Chinese CSI 300

000300, + 0.15%

                            
                                  
      
      
      
      
      
      
      
                                        with 0.2% added. In Europe, shares traded with the Stoxx Europe 600 mostly lower

SXXP, -0.30%

minus 0.3%.


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