Tuesday, 1 August 2017

US markets to open higher ahead of key data

Posted by Valentine at 15:11 Labels:

US equity futures were pointing to a higher open in early trading hours on Tuesday, with market participants looking ahead of key inflation and activity data later in the day.

The core PCE price index for June is set for release as of 12:30 GMT, with investors forecasting a 1.3 percent growth following a previous 1.4 percent reading. At 14:00 GMT, the Institute for Supply Management will present its manufacturing PMI for July, with 56.5 reading seen.

On Monday, the Dow Jones industrial average reached a fresh peak as investors were cheered by a remarkably strong earnings season. Boeing stocks were on top of advancers, adding as much as 1.2 percent during the session.

The S&P 500 was mostly flat during the day, with financial components adding the most and materials leading other sectors lower. The tech-heavy Nasdaq composite came under pressure as some large-cap FAANG stocks capped early gains.

  • Dow Jones Industrial Average: 33.76 / 0.15% / 21830.31
  • Standard & Poor’s 500: -3.32 / -0.13% / 2472.10
  • Nasdaq Composite: -7.51 / -0.12% / 6374.68

The second quarter earnings season has been definitely boosting optimism among investors. So far, seventy three percent of S&P 500 companies reported better-than-expected financial results.

In this context, traders continue to look carefully at Washington's political scene. Markets doubt the Trump administration will be able to fullfil its economic promises, such as imposing its polemic American Health Care Act or pushing a substantial tax reform later this year.

Adding to the White House shake-up following the replacement of Trump's chief of staff Reince Priebus with John Kelly, communication director Anthony Scaramucci has also been fired after taking on the position only ten days ago.

The only relevant release on Monday was pending home sales for June, which increased 1.5 percent, comfortably above an initially estimated 0.7 percent.

 Fort Financial Services

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