Tuesday July 19th


Wall Street set for pause as oil price dips

U.S. stock index futures indicated a lower open Tuesday, following European markets lower, as investors paused for breath after closing at record highs in the previous session. Global sentiment dipped Tuesday as oil markets edged lower. European stocks fell lower with the DAX down 1 percent in morning trade. In Asia, markets closed mixed with the Nikkei climbing despite shares of heavily weighted SoftBank tumbling around 10 percent after its $32 billion bid for a British chip firm. In South Korea, the Kospi closed down 4.22 points, or 0.21 percent, at 2,016.89. In Hong Kong, the Hang Seng index was down 0.57 percent in late afternoon trade. Chinese mainland markets closed mixed, with the Shanghai composite down 7.36 points, or 0.24 percent, at 3,036.19, and the Shenzhen composite finishing up 6.57 points, or 0.32 percent, at 2,034.45, reversing earlier losses. On Monday, U.S. stocks closed at all-time highs as Bank of America's quarterly results helped investor confidence going into earnings season. The Dow Jones industrial average ended about 15 points higher, with Goldman Sachs and Home Depot contributing the most gains. The blue-chip index extended its winning streak to seven days, with a fifth straight day of record closes. On Tuesday, earnings results are expected from Goldman Sachs, Johnson & Johnson, Novartis, Philip Morris, United Health, Comerica, LM Ericsson Telefon, Lockheed Martin, Prologis, Regions Fincl., TD Ameritrade, Wipro and WW Grainger before the bell. Microsoft, Cintas and Discover Financial are due to report after the closing bell. On the data front, new figures on housing starts are due at 8:30 a.m. ET. Oil prices erased early losses on Tuesday after falling on concerns over a crude and refined fuel glut outweighed an expected cut in U.S. shale production and a probable further draw in U.S. crude inventories. Crude prices fell more than 1 percent in the previous session after worries about potential supply disruptions stemming from an attempted coup in Turkey proved unfounded. Brent crude were up 28 cents to $47.24 a barrel by 7:50 a.m ET (1250 GMT) after finishing the previous session down 65 cents, or 1.4 percent. U.S. crude, known as West Texas Intermediate (WTI), rose 20 cents to $45.44 a barrel after settling 71 cents, or about 1.6 percent, lower in the previous session. Gold was mostly unchanged on Tuesday, holding on to its losses from the previous session as a pickup in investor appetite for risky assets capped demand for the precious metal. As of 0645 GMT on Tuesday, spot gold was up 0.1 percent at $1,330 an ounce, while U.S. gold was 0.1 percent higher at $1,330.80 an ounce.