Friday, 24 March 2017
US markets to open higher ahead of Trumpcare vote; economic data eyed
US equity futures ended in red territory on Thursday as late-night negotiations between Donald Trump and the Republican leadership over the Trumpcare vote offered no results.
The House Republicans were expected to decide on Thursday whether to support or not the American Health Care Act, which is meant to replace the still ongoing Obamacare, but has fallen under heavy scrutiny from both political parties.
The Republican vote was finally moved to Friday, with expectations running low for the Trump administration. According to analysts, at least 28 GOP seats will be voting ‘no’, although the government cannot afford to lose more than 21 votes in order to pass the bill.
While the Senate will most likely stop the bill again if passed today, this vote is more than just about healthcare. Investors are trying to figure out if the new administration is able to coordinate efforts within its own party, which is a key factor in the future of other laws coming up.
Since November 2016, US stock indexes have been rallying over speculation that Trump economic policies will promote a solid GDP growth by implementing tax cuts, deregulating industries and increasing fiscal spending.
The Dow Jones industrial average was down by 5 points, with UnitedHealth on top of decliners. The S&P 500 followed the negative trend as healthcare and energy components dragged it down, while the Nasdaq composite ended nearly a point lower after reaching an intraday high.
- Dow Jones Industrial Average: -0.02 percent / 20656.58 points
- Standard & Poor’s 500: -0.11 percent / 2345.96 points
- Nasdaq Composite: -0.07 percent / 5817.69 points
Today, market attention will remain on the healthcare vote and economic reports. Durable goods orders for February is due at 12:30 GMT, with analysts forecasting a 1.2 percent growth.
Preliminary readings on the manufacturing and services PMIs for March will be out at 13:45 GMT. Estimations stand at 54.8 and 54.2 points respectively. Last but not least, Baker Hughes will release its weekly oil rig count as of 18:00 GMT.
Fort Financial Services