Wednesday January 31st

31-01-2018

Dow futures surge 217 points as stocks rebound from 2-day sell-off, Boeing soars

U.S. stock index futures bounced back ahead of Wednesday's open, as investors awaited the decision from the latest Federal Open Market Committee (FOMC) monetary policy meeting. Dow Jones industrial average futures rose 217 points, boosted by a 5.4 percent gain in Boeing. The aerospace giant reported better-than-expected quarterly results. S&P 500 and Nasdaq 100 futures gained 13.50 points and 30.50 points, respectively. The major indexes fell sharply in the previous two sessions, with the Dow falling more than 500 points in that time period. Rising yields have also put stocks under pressure, elevating concerns over whether higher interest rates could snuff out the bull market. On Wednesday, earnings, data and the U.S. Federal Reserve are set to be at the front of investors' minds. The FOMC is expected to conclude its latest two-day policy meeting. While the Federal Reserve isn't expected to make any changes to its policy stance, the meeting will mark the last time Janet Yellen will act as chair of the central bank, before the role is passed on to Jerome Powell. The FOMC's meeting announcement is set to come out at 2 p.m. ET. A number of data releases are set to be published. Ahead of Friday's nonfarm payrolls data, investors will be looking closely to jobs data Wednesday. At 8:15 a.m. ET, ADP national employment report is due out, followed by the employment cost index at 8:30 a.m. ET. At 9:45 a.m. ET, Chicago purchasing manager index (PMI) is due, followed by pending home sales data at 10 a.m. ET. Mortgage Applications will also be released as usual, at 7 a.m. ET. In earnings, AT&T, eBay, Facebook, Microsoft, Mondelez International, PayPal, Qualcomm, and Symantec are some of the big names to release figures after the bell. On the political front, investors are likely to be mulling over the latest State of the Union address, made by President Donald Trump on Tuesday night. The overall theme of the incumbent's speech was "a safe, strong and proud America," with Trump touching upon topics such as immigration, bipartisan cooperation, infrastructure and the  economy. Most Asian indexes closed lower on Wednesday, despite earlier shrugging off the declines seen on Wall Street overnight. The Nikkei 225 closed lower for the sixth straight session after reversing slight gains late in the session. The index declined 0.83 percent, or 193.68 points, to end at 23,098.29. Across the Korean Strait, the Kospi gave up early gains to finish the session just below the flat line. The index closed lower by 0.05 percent despite gains seen in some heavily weighted tech names. The Hang Seng Index rose 0.86 percent, or 279.98 points, to end at 32,887.27, with financial stocks mostly higher after recording losses in the last session. Mainland markets finished in negative territory: The Shanghai composite closed 0.19 percent lower and the Shenzhen composite fell 1.66 percent. Despite the declines, blue chip names recorded gains in the session. The CSI 300 index, which tracks large caps listed in Shanghai and Shenzhen, finished higher by 0.48 percent. Oil fell for a third day on Wednesday, but remained on track for its biggest gain in January in five years, in spite of data that showed U.S. crude stocks rose more than expected last week and a broader selloff in other commodities, stocks and bonds. Brent crude, the global benchmark, was down 49 cents at $68.43 a barrel by 1015 GMT, after touching a two-week low earlier in the day. U.S. West Texas Intermediate (WTI) futures were down 39 cents at $64.11. On Tuesday, U.S. crude fell 1.6 percent to close at $64.50 a barrel, far outpacing a 0.6 percent drop in the price of Brent. Gold prices rebounded on Wednesday as the dollar resumed its downtrend, but analysts said bullion was vulnerable to weakness ahead of the Lunar New Year and if bulls start shedding their long positions. Spot gold was up 0.4 percent to $1,342.80 per ounce by 1000 GMT. In the previous session, it touched its lowest since Jan. 23 at $1,334.10 an ounce. U.S. gold futures for February delivery rose 0.5 percent to $1,342.10 per ounce.