Stock index futures reduce their loss after GDP better than expected


US stock index futures canceled Thursday a slight decline after a reading of the fourth quarter GDP higher than expected. The reading comes as actions were under pressure after denuclearization talks broke between President Donald Trump and North Korean leader Kim Jong Un

How are stock market indices doing?

Futures for the Dow Jones Industrial Average

YMH9, -0.09%

trading at 26,009, those of the S & P 500 index

ESH9, -0.18%

were down 3.10 points, or 0.1%, to 2,792, while the Nasdaq-100 futures

NQH9, -0.29%

down 15.75 points to 7,105.75, a decrease of 0.2%.

Wednesday, the Dow

DJIA, -0.28%

fell by 72.82 points, or 0.3%, to 26,985.16 and the S & P 500 Index

SPX, -0.05%

fell 1.52 points to 2,792.38. The Nasdaq composite index

COMP + 0.07%

maintained its gains slightly up 5.21 points to 7 554.51.

What is the engine of the market?

According to Commerce estimates for fourth-quarter GDP growth, the US economy grew at a rate of 2.4%, well above consensus expectations of 1.9%, according to a survey by MarketWatch. economists. The data show that growth in 2018 has been at a record pace since 2015.

The economic report was released as investors focused on recent geopolitical tensions.

White House spokeswoman Sarah Sanders told reporters at a press conference that a North American-American. A nuclear deal could not be reached at the Hanoi summit between Trump and Jong Un because the isolated nation wanted more sanctions than the president would allow.

A failure to achieve concrete progress in the denuclearization of North Korea comes about eight months after the first meeting between the two leaders in Singapore failed to achieve concrete goals.

Nevertheless, the president expressed hope that a pact could be concluded and described North Korea as "a huge potential".

Changes in the political situation follow poor data from China, with official figures for purchasing managers in the manufacturing sector declining for the third month in a row.

On Wednesday, US Trade Representative Robert Lighthizer said that the United States would abandon, for the moment, its threat to raise tariffs to 25% of $ 200 billion worth of Chinese goods on March 2nd.

A day earlier, animosities reunited between Pakistan and India in the long-disputed Kashmir region, tipped world markets down, following a report according Pakistani army reportedly shot down two Indian jets entered its airspace and captured an Indian pilot.

What do the strategists say?

"Geopolitical tensions continue to weigh on market sentiment as stock markets around the world are down. This change of opinion, triggered yesterday by the tensions between India and Pakistan, was further reinforced with the lack of agreement after the meeting of D. Trump and Kim Jong Un in Hanoi ", said Pierre Veyret , technical analyst at ActivTrades.

Which Fed data and stakeholders are at the center
  • Vice President of the US Federal Reserve, Richard Clarida, said the Fed wanted to be "very, very clear" that it was not changing its 2% inflation target because it was considering ways to to better utilize this data to inform the rate hike policy. The official was speaking at the 35th Annual NABE Economic Policy Conference in Washington on the theme "Promoting Global Growth and National Economic Security".
  • Atlanta Federal Reserve Chairman Raphael Bostic will participate in a panel on the "Housing and Economic Landscape" at the 2019 Banking Outlook Conference at 8:50 am.
  • Philadelphia Fed President Patrick Harker is due to deliver a speech on the economic outlook at 12:15 pm to the influence of The Philadelphia Inquirer's finances.
  • Dallas Federal Reserve Chairman Rob Kaplan is scheduled to attend at 1 pm in a discussion organized by Real Estate Council in San Antonio.
  • Later in the evening, after the market closes, Loretta Mester, president of the Cleveland Fed, at 7 pm. and Jerome Powell, boss of the Fed, at 8:15 pm, must speak

Beyond GDP data, the Ministry of Labor estimated that the number of Americans claiming unemployment benefits during the week ended February 9th increased by 4,000, to reach a seasonally adjusted rate of 239,000. The economists surveyed by MarketWatch were expecting 225,000.

The reading of the Chicago PMI is expected at 9:45 am and a report on vacancies for the fourth quarter is expected to be released at 10:00 am.

What stocks are under discussion?

Horizon Pharma PLC stock

HZNP, + 4.60%

Pre-commercial trade climbed 16.75% on Thursday after the company announced positive results in the context of a final-phase trial of a treatment for active thyroid disease, or TED.

SeaWorld Entertainment Inc.

seas -0.08%

Thursday announced a lower-than-expected fourth-quarter loss and business figure higher than expected, but per capita income was disappointing. The stock is up 2.8% in the pre-market.

Actions of HP Inc.

HPQ, -0.21%

Pre-market trade fell 14% on Thursday, after the company announced a decline in its market share and revenue from its printer supply business is under pressure, in a report on the results. from Wednesday evening.

J.C. Penney Co. Inc.

JCP, -0.80%

Stocks climbed 19% before the bell Thursday, after the retailer beat Wall Street's revenue and revenue forecast for the fourth quarter, while announcing the closure of 18 full-size stores and 9 stores. furniture stores and home goods.

Actions of Celgene Corp.

CELG, + 1.43%

are in focus, after Bristol-Myers Squibb's

BMY, + 1.59%

The largest shareholder has announced its opposition to Bristol's takeover of Celgene. The stock fell by 8.5% in pre-commercial trade.

L Brands Inc.

KG, -0.29%

Shares are down 6.2% after business hours, after Victoria's Secret's parent company announced Wednesday fourth-quarter earnings below expectations.

How other high performing assets?

Asian markets mainly closed lower on Thursday, with the Nikkei 225

NIK -0.79%

and the Shanghai Composite Index

SHCOMP, -0.44%

both ending the day.

European equities were also down on Thursday; the Stoxx 600

SXXP, -0.24%

was down 0.3%

In commodity markets, crude oil

CLJ9, + 0.23%

slightly down, while the price of gold

GCJ9, + 0.15%

Advanced. Meanwhile, the value of the dollar

DXY, -0.06%

plunged against his peers.

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