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US stock index futures announced a decline in opening on Friday, setting the leading indexes up for a week of solid losses, though they are expected to end in September and the third quarter of 2018 with gains.
Where are the main reference markets?
Futures for the Dow Jones Industrial Average
YMU9, + 0.00%
fell 120 points, or 0.5%, to 26,353. S & P-500 futures
ESU9, + 0.29%
lost 11 points to 2,909, a decrease of 0.4%. Futures contracts on the Nasdaq-100 index
NQU9, + 0.17%
were down 36 points, or 0.5%, to 7.621.
If the evolution implied by the futures contracts is maintained, the Dow is considering its fourth decline of the last five sessions, while the S & P is on track for its fifth decline of the last six.
Until this week, the Dow
DJIA, + 0.21%
is down 1.1% in what could be its biggest weekly loss since the end of June. The sp
SPX, + 0.28%
fell by 0.5%. The nasdaq
COMP + 0.65%
remains up 0.7% for the week, at the close of Thursday. If the Dow and S & P ended in negative territory, this would mark their first weekly decline in the last three weeks, but only their third of the last 10 years.
Friday marks the last trading day of September, the month that has always been the lowest in the year for US stocks. The Dow, however, is on track for a monthly gain of 1.8%, its third consecutive gain, while the S & P is up 0.4% at its sixth consecutive monthly gain. The Nasdaq is down 0.8% in September and is poised to take a series of five-month wins.
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Friday is also the last day of the third quarter. Over the last three months, the S & P grew by 7.2%, which is expected to be its largest quarterly advance since the fourth quarter of 2013. The Dow Jones is up 8.9%; The Dow Jones and the S & P both rose in the last 11 quarters. Nasdaq is up 7.1% in the quarter and is expected to record its ninth consecutive quarterly gain.
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What is driving trade?
Recent deals have been relatively quiet on Wall Street, with little profit for the market. Despite the market loss for the week, the trading range was tight; the S & P did not finish with a 0.5% move in both directions of the week.
Tesla Inc.
TSLA, -0.67%
could be a top priority for investors Friday, a day after the Securities and Exchange Commission sued Elon Musk, general manager of the electric car maker. The SEC alleges that Musk misled investors when it tweeted that it was considering taking the company privately, and it seeks to ban him from serving in his role as CEO .
The stock fell 11% in pre-market operations, its last episode of high volatility. The stock has lost more than 12% in the last three months.
Although Tesla has a limited impact on broader indexes – it is not a component of the S & P 500 – it is sometimes perceived as a proxy for high-risk, high-growth stocks, a segment of the S & P 500. market that feeds the market. gains in 2018. Although Tesla's problems are unique to each company, the weakening of sentiment with respect to overall growth could have an impact on the entire business. market.
In addition, the Italian government against the creation of institutions has significantly expanded its budget deficit target for next year to finance its election promises, which is likely to conflict with the European Union. The question is the latest geopolitical turbulence that could have an impact on Wall Street, following a currency crisis in Turkey in the early summer.
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In latest economic data, consumer spending rose 0.3% in August, the slowest pace since February. Personal income also rose 0.3%. The 12-month increase in the PCE, the Federal Reserve's preferred inflation gauge, went from 2.3% to 2.2%.
The Chicago Purchasing Manager Index for September will be released at 9:45, followed by a reading of the consumer climate in September 15 minutes later.
Issues surrounding trade policy have also persisted. On Wednesday, President Donald Trump accused Beijing, without public evidence, of attempting to interfere with US mid-term elections and attempting to hurt him politically. The accusations come as a trade dispute between the two countries intensifies with the imposition of a 25% tariff on over 200 million dollars of Chinese imports in the USA.
While investors have repeatedly ignored the issue of trading, focusing on solid economic data and corporate earnings, any further development on this front could dictate short-term market direction.
What do market analysts say?
"Italy has been a major concern for weeks and if the situation gets worse, you can expect the market to sell significantly. The big problem is contagion: will it spread? If this is the case, it could trigger a recession, which will lead to a decline in European GDP and will also have a negative impact on US multinationals, "said Adam Sarhan, managing director of 50 Park Investments.
"For Tesla, many of Musk's recent actions raise questions about his decision-making abilities," he said. "If his tweet was just rash behavior and an ego, it's clear that this will be bad news for the stock. And if this question means that the Nasdaq, one of the main indices of this year, begins to fall, it would be a real sign of caution for growth stocks as a whole. "
What are the targeted stocks?
Actions of Applied Optoelectronics Inc.
AAOI, -9.51%
14% in pre-market operations after the reduction in revenue outlook for the third quarter.
J.C. Penney Co.
JCP, -8.95%
Jeffrey Davis, Chief Financial Officer, resigned on October 1st.
Blackberry
BB -1.26%
equities rose 2.1% in pre-market transactions after the second quarter results.
Where are the other commercial markets?
The main European indices fell, with Italy suffering the biggest loss of a day in more than two years after its budget problem. Asian stocks have mostly increased, with Japan's Nikkei reaching its highest level since 1991.
Crude oil price
CLK9, + 0.18%
were flat during the day, while gold
GCM9, + 0.00%
was down less than 0.1%. The US dollar index
DXY, + 0.31%
increased by 0.4%.
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