Wednesday July 25th

25-07-2018

Dow futures fall 100 points after GM, Boeing decline on earnings

U.S. stock index futures fell on Wednesday as Wall Street focused on the latest batch of corporate earnings results. Dow Jones Industrial Average futures dropped 97 points, indicating a decline of 103.94 points at the open. Nasdaq 100 and the S&P 500 futures also pointed to declines in their respective trading sessions. Dow-component Boeing reported better-than-expected earnings, but the stock fell more than 2 percent after the company issued weaker-than-expected guidance. General Motors' stock fell more than 5 percent in the premarket after cutting its full-year profit forecast.The company cited "recent and significant increases in commodity costs" as well as currency headwinds for the cut. The company posted, however, quarterly earnings and revenue that surpassed analyst expectations. Facebook and Qualcomm are among the companies scheduled to report after the close. Wall Street has high hopes for this earnings season, with analysts polled by FactSet expecting a 20 percent year-over-year increase in second-quarter profits. Investors also looked ahead to a meeting in Washington between President Donald Trump and European Commission President Jean-Claude Juncker. The two leaders are expected to discuss improving transatlantic trade relations among other subjects. This is of key importance as relations have been strained between both regions in recent months. In June, the U.S. president threatened tariffs on imported cars from the European Union. Last week, the EU’s Trade Commissioner Cecilia Malmstrom said that if the U.S. imposed these levies, it would be “very unfortunate,” and added that the bloc had prepared its own list of countermeasures. Asian markets closed mixed on Wednesday, with benchmarks in Japan and Hong Kong tracking higher after Wall Street mostly advanced on the back of strong corporate results overnight. The Nikkei 225 closed higher by 0.46 percent, or 103.77 points, at 22,614.25. Mainland China stocks finished the session near breakeven, with the Shanghai Composite closing lower by 0.04 percent at 2,904.37, snapping a recent winning streak which saw three consecutive sessions of gains. The smaller Shenzhen Composite inched lower by 0.07 percent to 1,624.72. In Hong Kong, the Hang Seng Index climbed 1.01 percent by 3:00 p.m. In Seoul, the Kospi slipped 0.31 percent to 2,273.03 after reversing a rise seen earlier as major technology stocks turned lower. Oil prices rose for a second day on Wednesday after data showed U.S. crude inventories fell more than expected, easing worries about oversupply that have dragged on markets in recent weeks. Brent crude was up 60 cents, or 0.8 percent, at $74.04 a barrel by 1015 GMT, after gaining 0.5 percent on Tuesday. U.S. light crude was 5 cents higher at $68.57, having risen nearly 1 percent in the previous session. U.S. crude and fuel stockpiles fell more than expected last week, industry group the American Petroleum Institute (API) reported late on Tuesday. Gold steadied near one-year lows on Wednesday as the dollar slipped, while lack of clarity over where a brewing trade spat between the United States and Europe is heading kept most markets range-bound. Spot gold was up 0.6 percent at $1,231.14 an ounce at 1001 GMT. It touched $1,211.08 last week, the lowest since July last year, for a loss of more than 10 percent since April 11. U.S. gold futures gained 0.1 percent to $1,226.20.