Futures Pointing to Mixed Open on Wall Street

June 7, 2018
wall street

By Investors Hub

The major U.S. index futures are pointing to a mixed opening on Thursday following the strength seen in the previous session.

The Dow may benefit from continued strength among financial stocks following the rally on Wednesday, while the Nasdaq may give back ground after climbing to record highs.

Trading activity may be somewhat subdued, as traders look ahead to a G-7 summit in Canada this week as well as the planned meeting between President Donald Trump and North Korean leader Kim Jong Un next week.

Stocks moved mostly higher over the course of the trading session on Wednesday after initially showing a lack of direction. The strength on the day lifted the Nasdaq to another new record closing high, while the Dow and the S&P 500 both rose to their best closing levels in nearly three months.

The major averages saw further upside going into the close, reaching new highs for the session. The Dow soared 346.41 points or 1.4 percent to 25,146.39, the Nasdaq climbed 51.38 points or 0.7 percent to 7,689.24 and the S&P 500 advanced 23.55 points or 0.9 percent to 2,772.35.

Financial stocks helped to lead the upward move on Wall Street amid a pullback by U.S. treasuries after European Central Bank chief economist Peter Praet indicated the ECB will discuss ending its bond purchasing program at a meeting next week.

Reflecting the strength in the financial sector, the KBW Bank Index jumped by 2.1 percent and the NYSE Arca Broker/Dealer Index advanced by 1.8 percent.

“Next week, the Governing Council will have to assess whether progress so far has been sufficient to warrant a gradual unwinding of our net purchases,” Praet said in a speech in Berlin.

He added, “In making its assessment, it will consider the underlying strength of the euro area economy and the pass-through to wage and price formations.”

Chemical, steel, and biotechnology stocks also saw considerable strength on the day, while notable weakness was visible among interest-rate sensitive utilities stocks.

Amid ongoing concerns about a global trade war, the Commerce Department released a report this morning showing the U.S. trade deficit unexpectedly narrowed in the month of April.

The Commerce Department said the trade deficit narrowed to $46.2 billion in April from a revised $47.2 billion in March.

Economists had expected the deficit to come in unchanged compared to the $49.0 billion originally reported for the previous month.

A separate report from the Labor Department showed labor productivity in the U.S. increased by less than previously estimated in the first quarter.

The report said labor productivity rose by 0.4 percent in the first quarter compared to the previously estimated 0.7 percent growth. Economists had expected the increase in productivity to be downwardly revised to 0.6 percent.

Meanwhile, the rate of growth in unit labor costs in the first quarter was upwardly revised to 2.9 percent from 2.7 percent. The increase in costs had been expected to be revised to 2.8 percent.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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