Thursday February 8th

8-02-2018

Dow set for triple-digit fall at the open after major market volatility

U.S. stock index futures pointed to further losses ahead of Thursday's open, as investors turn their attention to the latest corporate news, while trying to shake off the volatile trading seen in markets worldwide. The Dow Jones industrial average was tipped to open down 153 points, while the S&P 500 and Nasdaq 100 were set to open 16 points lower and down 28 points, respectively. The movements seen in U.S. futures come on the back of a slightly negative close on Wednesday. In the previous session, U.S. stocks finished in the red as interest rates climbed back toward multi-year highs. Major U.S. indexes started to come under pressure on the back of a rise in the 10-year Treasury yield, sparking renewed concerns which triggered the sell-off that started last Friday. As investors remain on edge over the volatile trading, earnings are set to stir up sentiment during Thursday's session. CVS Health, Twitter and T-Mobile all reported better-than-expected quarterly results. Shares of CVS rose 2.1 percent in the premarket, while Twitter spiked 13 percent higher. T-Mobile traded 1 percent higher. Meantime, after the bell, AIG, Nvidia, Activision Blizzard, Expedia, News Corp., FireEye, Lions Gate and Skechers are scheduled to report. Aside from earnings, data, politics, and central banking news are set to be on investors' minds. On Wednesday, U.S. congressional leaders arrived at a two-year budget deal, in order to raise spending on military and domestic areas by close to $300 billion. President Donald Trump showed approval of the deal, tweeting that the agreement was "so important for our great military," adding that both major political parties "must support" the troops and therefore the bill. Meantime, investors will be keeping an ear out for any news out of the speeches made by members of the U.S. Federal Reserve. Looking to data, jobless claims are due to be released at 8:30 a.m. ET. Asian stock indexes closed higher on Thursday after last session's rally stalled late in the trading day. Gains in the region followed the slightly lower close seen on Wall Street as U.S. bond yields rose. In Tokyo, the Nikkei 225 jumped 1.13 percent, or 245.49 points, to close at 21,890.86 after closing barely in positive territory in the last session. In Seoul, the Kospi closed up 0.46 percent at 2,407.62 after finishing in negative territory on Wednesday. Hong Kong's Hang Seng Index rose 0.35 percent at 3:14 p.m. HK/SIN. Indexes on the mainland closed mixed after lagging other regional indexes in the last session: The Shanghai composite slid 1.42 percent to close at 3,262.15 while the Shenzhen composite rose by 1.18 percent to end at 1,734.57. Oil prices hit their lowest in six weeks on Thursday after data showed U.S. crude output had reached record highs and the North Sea's largest crude pipeline reopened following an outage. The rise in U.S. 10-year government bond yields to their highest in four years this week has put the dollar on track for its biggest weekly rise since November 2016, making it more profitable for non-U.S. investors to sell dollar-denominated assets such as oil. Brent crude futures were down 14 cents at $65.37 a barrel by 0907 GMT, having hit a 2018 low of $65.10. U.S. futures were down 15 cents at $61.64 a barrel. Gold prices dropped for a third straight session on Thursday and hit a fresh four-week low, as investors liquidated their long positions on a firmer dollar, while expectations of more U.S. rate hikes this year also weighed on the market. Spot gold was down 0.4 percent at $1,312.41 per ounce as of 0755 GMT, after hitting its lowest since Jan. 10 at $1,309.51 earlier in the session. U.S. gold futures for April delivery were nearly flat at $1,314.50 per ounce.