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US futures have signaled a lower start for Wall Street on Monday, as global equities failed to rally at a rally late last week following a rout in several sessions. has left the leading indexes at their worst weekly completion since March.
Investors were also expecting data on retail sales and the results of financial companies such as Bank of America.
Should know: Do not exclude 400 USD of oil if the United States punishes Saudi Arabia
How are the main benchmarks traded?
Dow Jones Industrial Average – Futures Contracts
YMZ8, -0.56%
were down 176 points, or 0.7%, to 25,135, while the S & P 500 futures contracts
ESZ8, -0.63%
fell 20.65 points, or 0.8%, to 2,747.75. Nasdaq-100
NQZ8, -0.99%
fell 78 points, or 1%, to 7,094.50.
On Friday, the
DJIA, + 1.15%
Dow Jones Industrial Average
DJIA, + 1.15%
ended the day with a rise of 287.16 points, or 1.2%, to 25,339.99 in trading whipsaw. The S & P 500
SPX, + 1.42%
up 1.4% to 2,767.13 points, breaking a series of six consecutive losses that have had their longest run since a nine-day drop that ended in November 2016. L & # 39; Nasdaq Composite Index
COMP + 2.29%
up 2.3%, its best daily performance since March 26th.
But for the week, the Dow Jones index lost 4.2%, the S & P, 4.1% and the Nasdaq, 3.7%, representing their worst weekly performance since March.
Lily: Here is how the stock market was damaged during a powerful rout
What motivates the market?
Investors remain frightened by last week's two-day sale which, at its worst, had erased 1,400 Dow points and pushed the Nasdaq towards correction. The losses were related to the nervousness related to the sudden rise in interest rates, the yield of the 10-year Treasury Note
TMUBMUSD10Y, -0.33%
hit a seven-year high above 3.25% last week. This yield oscillated at 3.15% Monday.
Higher returns increase borrowing costs for companies and drive investors away from riskier assets, such as equities. Returns are inversely proportional to price.
Considered to be one of the main drivers of equities in the coming week, the Q3 earnings season is off to a good start this week, with Goldman Sachs Group Inc.
GS + 0.42%
among the names of leading banks reporting, while streaming video group Netflix Inc.
NFLX, + 5.75%
will also be a strong point.
Netflix benefit: The second quarter of the broadcast giant really missed his shot?
Geopolitical tensions were another area of concern for investors, starting with Saudi Arabia, which is facing a growing diplomatic dialogue with the United States. On Sunday, President Donald Trump threatened to "severely punish" the Saudis if a link was found between the kingdom and a dissident dissident. journalist. The country responded with an immediate threat of retaliation, prompting a recovery in oil prices, although gains have since been reduced.
Saudi backlash: The managing director, J.P. Morgan, is the last to be removed from the Riyadh conference, but Mnuchin still plans to attend.
Should know: Do not exclude 400 USD of oil if the United States punishes Saudi Arabia
Trump made these comments in a "60-minute" interview in which he also said that the US could impose a third round of tariffs on China, which he said did not "not enough ammunition to retaliate".
And worries have resurfaced about a Brexit without agreement after the UK and the EU failed to find a compromise on the Irish border issue. Both parties hoped that an agreement on a withdrawal agreement would be largely settled before Wednesday's European summit.
Should know: Do not exclude 400 USD of oil if the United States punishes Saudi Arabia
What data is on the faucet?
Retail sales for September are expected at 8:30 am Eastern Time, as well as the Empire State Index for October, which follows manufacturing conditions in the New York area.
What do the analysts say?
Investors need two things to continue to cope with the troughs of the stock market, said Hussein Sayed, chief market strategist at FXTM, in a note to customers.
"One of the most important is that corporate earnings should remain strong and exceed the expected 20% earnings growth for the third quarter, while offering a promising outlook for the coming quarters. Two, the United States and China must conclude a trade agreement, said Sayed. "If these two criteria are not met, stocks may have already peaked in 2018."
What stocks are under discussion?
Bank of America Corp.
LAC + 0.35%
and Charles Schwab Corp.
SCHW, + 1.83%
will report results before the opening on Monday.
How are other markets traded?
Asian equities ended down, not taking over from the United States on Friday, driven by a 1.9% decline in the Nikkei 225 index
NIK -1.87%
The main European indices were weaker overall.
Crude oil prices remained firm despite tensions between the United States and Arabia, while
GCZ8, + 1.17%
climbed nearly 1%. The US dollar index
DXY, -0.26%
was flat.
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