Dow, S&P 500 set for 3-day skid as Wall Street awaits fourth-quarter GDP

on Feb28
by | Comments Off on Dow, S&P 500 set for 3-day skid as Wall Street awaits fourth-quarter GDP |

U.S. stock-index futures on Thursday were headed lower after President Donald Trump said talks with North Korean leader Kim Jong Un aimed at reducing that communist country’s nuclear weapons broke down abruptly. Meanwhile, investors were awaiting a key read of the economy, gross domestic product, which is set to be released later in the morning.

How are stock indexes faring?

Futures for the Dow Jones Industrial Average

YMH9, -0.13%

was off 51 points, or 0.2%, at 25,057, those for the S&P 500 index

ESH9, -0.21%

were off 7.35 points, or 0.3%, at 2,787.75, while Nasdaq-100 futures

NQH9, -0.36%

declined 29.50 points to 7,092, a fall of 0.4%.

The Dow

DJIA, -0.28%

dropped 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%

held on to gains to edge up 5.21 points to 7,554.51.

What’s driving the market?

White House spokeswoman Sarah Sanders told reporters at a news conference that a North American-U.S. nuclear agreement couldn’t be reached at the summit in Hanoi between Trump and Jong Un because the isolated nation wanted more sanctions lifted than Trump was willing to allow.

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

Still, the president expressed hope that a pact could be achieved and described North Korea as having “tremendous potential.”

The political developments come amid poor data out of China, with the country’s official manufacturing purchasing managers index figures contracting for a third consecutive month.

On Wednesday, U.S. Trade Representative Robert Lighthizer said the U.S. would abandon—for now—its threat to raise tariffs to 25% on $200 billion of Chinese goods on March 2.

Looking ahead, market participants will be ahead to fourth-quarter GDP for signs of health of the domestic economy, even if those reports are likely to show signs of the record, 35-day partial government shutdown. Due to the partial government shutdown, the GDP reading at 8:30 a.m. Eastern Time will include first and second estimates for growth, with consensus forecasts expected to fall below 2%.

A day earlier, renewed animosities between Pakistan and India over the long-disputed Kashmir region, set global markets tilting lower, following a report that the Pakistani military shot down two Indian jets that had entered its airspace, and captured one Indian pilot.

What are strategists saying?

“Geopolitical tensions continue to weigh on market sentiment as stock markets around the world are drifting lower. This shift in sentiment, triggered yesterday by rising tensions between India and Pakistan, has found further strength with the lack of an agreement following D.Trump and Kim Jong Un’s meeting in Hanoï,” said Pierre Veyret, technical analyst at ActivTrades.

Which data and Fed speakers are in focus Federal Reserve Vice Chairman Richard Clarida is slated to speak at 8 a.m. at the 35th Annual NABE Economic Policy Conference in Washington on “Promoting Global Growth and Domestic Economic Security.” Atlanta Federal Reserve Bank President Raphael Bostic is scheduled to participate in a panel about “Economic and Housing Landscape” at the 2019 Banking Outlook Conference at 8:50 a.m. Philadelphia Fed President Patrick Harker is slated to deliver a speech on the economic outlook at 12:15 p.m. at The Philadelphia Inquirer’s Influencers of Finance. Dallas Federal Reserve President Rob Kaplan is scheduled to participate at 1 p.m. in a discussion hosted by Real Estate Council in San Antonio. Later in the evening, after the market close, Cleveland Fed President Loretta Mester at 7 p.m. and Fed boss Jerome Powell at 8:15 p.m., are scheduled to speak

Beyond, GDP data, a reading of jobless claims is scheduled for 8:30 a.m., a reading of Chicago PMI is due at 9:45 a.m., and a report on housing vacancies for the fourth quarter is set to be released at 10 a.m.

Which stocks are in focus?

Horizon Pharma PLC shares

HZNP, +4.60%

soared 16.75% in premarket trade Thursday, after the company announced positive results in a late-stage trial of a treatment for active thyroid eye disease, or TED.

SeaWorld Entertainment Inc.

SEAS, -0.08%

reported Thursday a narrower-than-expected fourth-quarter loss and revenue that topped forecasts, but revenue per capita came up short. The stock is unchanged in premarket trade.

Providing critical information for the U.S. trading day. Subscribe to MarketWatch’s free Need to Know newsletter. Sign up here.

Previous postSotheby's profit, revenue rise above expectations Next postUPDATE: Horizon Pharma stock soars 17% premarket on positive trial of eye disease treatment

Los Angeles Financial times

Copyright © 2022 Los Angeles Financial times

Updates via RSS
or Email