US stock indexes to extend losses amid rising political fears

US stock indexes ended lower on Monday amid mixed economic reports that weighed on market sentiment, while traders moved cautiously ahead of a US-China summit later this week.
The Dow Jones industrial average was down by nearly 10 points yesterday, with Goldman Sachs and DuPont on top of decliners. The S&P 500 was dragged down by materials and consumer discretionary components. The Nasdaq composite also came under pressure.

• Dow Jones Industrial Average: -0.06 percent / 20650.21 points
• Standard & Poor’s 500: -0.16 percent / 2358.84 points
• Nasdaq Composite: -0.29 percent / 5894.68 points

In economic news, Markit’s manufacturing PMI for March came in at 53.3 against 53.5 seen. The Institute of Supply Management released its own manufacturing PMI, which came in at 57.2, above expectations for 57.0 but still down from a previous month 57.7.
Other news included construction spending for February, which rose by 0.8 percent, falling short from an estimated 1.0 percent growth. Also, vehicle sales disappointed investors with 16.62 million units compared to 17.40 million units initially forecasted.
Market players also paid attention to a series of FOMC speakers in search for hints on the timing of the next Federal Reserve interest rate hike. According to CME Group’s FedWatch tool, chances for a June hike currently stand around 50 percent.
Philadelphia Fed President Patrick Harker said on Monday that the US regulator should increase rates at least two more times this year.
Meanwhile, focus is also directed to a meeting between US President Donald Trump and China’s President Xi Jinping at Florida’s Mar-a-Lago golf resort on April 6-7. Trump has anticipated that the discussion will be “very difficult”, especially on jobs and trade issues.
Today, market players await trade balance for February as of 12:30 GMT, with expectations for a deficit contraction to $44.80 billions. Redbook is due at 12:55 GMT while factory orders for February are expected at 14:00 GMT. Analysts forecasted a 1.0 percent increase.
Outgoing Fed Governor Daniel Tarullo will be giving a speech at 20:30 GMT.

Fort Financial Services