Plus   Neg

Wall Street Likely To Open On Negative Note

wallstreet july20 22feb21 lt

Lower futures point to a weak start for U.S. stocks Monday morning. Activity is likely to be stock specific during most part of the day's session, with quarterly earnings news providing direction.

Dow futures are sliding 0.54 percent and S&P futures are lower by 0.74 percent, while the Nasdaq futures are down as much as 1.36 percent.

Investors will also be following the developments with regard to additional stimulus proposal.

In earnings news, Discovery, Inc. (DISCK) reported fourth-quarter net profit of $271 million, or $0.42 per share, compared with $476 million, or $0.67 per share, a year ago. Analysts had expected the company to earn $0.72 per share.

Dish Network Corp. (DISH) announced a $733 million, or $1.24 per share for the fourth quarter, compared with $389 million, or $0.69 per share, in last year's fourth quarter. Analysts had expected the company to earn $0.75 per share, according to figures compiled by Thomson Reuters.

Boeing (BA) shares will be in focus after United Airlines said it will temporarily ground 24 of its Boeing 777s from service after one of the planes suffered an engine failure over the weekend.

The Conference Board's report on its leading economic index for the month of January is due out at 10 AM ET. The board's leading economic index rose by 0.3 percent in December after climbing by 0.7 percent in November and advancing by 0.9 percent in October. The uptick by the index still matched economist estimates.

Survey reports from the Chicago and Dallas Federal Reserve banks are due out at 8:30 AM and 10:30 AM, respectively.

The U.S. market ended roughly flat on Friday, giving back ground after moving higher early on in the session. Stocks moved higher early on amid optimism about more fiscal stimulus following Treasury Secretary Janet Yellen's comments that President Joe Biden's $1.9 trillion relief package could help the U.S. get back to full employment within in a year.

Buying interest waned later due to a jump in treasury yields, with the yield on the benchmark ten-year note reading its highest closing level in almost a year.

The major averages finished the day with a mixed performance. While the S&P 500 dipped 7.26 points or 0.2 percent to 3,906.71, the Dow crept up 0.98 points or less than a tenth of a percent to 31,494.32 and the Nasdaq inched up 9.10 points or 0.1 percent to 13,874.46.

The Dow edged up 0.1 percent in the holiday-shortened week, while the S&P 500 slid by 0.7 percent and the Nasdaq slumped by 1.6 percent.

In overseas trading, Asian stocks ended mostly lower on Monday amidst lingering worries about inflation and high valuations.

European markets are exhibiting weakness despite coming off early lows. Concerns over rising bond yields and inflation appear to be prompting traders to stay cautious and refrain from creating fresh long positions.

Crude oil prices are moving higher. West Texas Intermediate Crude oil futures for March are up $0.51 or 0.86 percent at $59.75 a barrel.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT