Monday, 14 August 2017
US stock index futures higher; economic data in focus
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Wall Street
Wall Street three major stock indexes pointed to a higher open on Monday pre-session hours as traders looked ahead of FOMC latest meeting minutes to define the course of monetary policy and as the Korean crisis continued to weigh on risk appetite.
Last week, the Dow Jones industrial average ended up 14.31 points at 21,858.32, with Apple pushing the benchmark higher. The S&P 500 rose 0.13 percent to 2,441.32, with information technology leading other sectors to the upside. Tech-heavy index Nasdaq composite was up 0.64 percent to close at 6,256.56 as FAANG stocks recovered from previous losses.
- Dow Jones Industrial Average: 14.31 / 0.07% / 21858.32
- Standard & Poor’s 500: 3.11 / 0.13% / 2441.32
- Nasdaq Composite: 39.68 / 0.64% / 6256.56
Market participants are opting for a cautious positioning as the tensions between the US and North Korea increased uncertainty. Last week, Pyongyang said it was “carefully examining” a possible strike on Guam, a US territory located on the western Pacific Ocean.
President Donald Trump said his previous comment that any threat from North Korea would be faced with “fire and fury” was not “tough enough”.
The CBOE volatility index, which is currently the best way to keep track of fear in the market, moved to 15.7, the highest level since the November presidential election.
In economic news, the Labor Department reported a 0.1 percent rise of consumer prices in July, below expectations for a 0.2 percent build. The index is considered one of Fed’s most important inflation measures and it plays an important role in defining future monetary policy changes.
According to Fed funds tracked by CME Group’s FedWatch tool, traders are currently pricing in a 42.2 percent probability of a third 25-basis points rate increase by December.
No relevant economic data is scheduled for Monday.
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