Wednesday June 6th

6-06-2018

Dow set to rise more than 100 points, tech shares rise

U.S. stock index futures rose ahead of the open on Wednesday as tech shares climbed, while investors turned their attention to an upcoming political summit in Canada. Around 7:55 a.m. ET, Dow Jones industrial average futures rose 121 points, indicating a higher open of 143.32 points. Nasdaq 100 and S&P 500 futures also indicated a solid start to the session for their respective markets. Shares of Netflix and Tesla rose 0.8 percent and 2.6 percent in the premarket, respectively, while Alphabet and Apple also ticked higher. The moves in premarket trade came after U.S. markets ended Tuesday's session on a mixed note. While the Nasdaq finished at a new record on Tuesday, boosted by Netflix, other major indexes closed around the flatline. In markets overseas, stocks in the Asia-Pacific region closed mostly in the black, while European markets saw fluctuations early during its trading session. The Nikkei 225 edged higher by 0.38 percent, or 86.19 points, to close at 22,625.73. Hong Kong's Hang Seng Index advanced 0.65 percent by 3:15 p.m. Mainland markets were little changed. The Shanghai composite finished higher by 0.05 percent at 3,115.68 and the Shenzhen composite rose 0.08 percent to 1,779.15. Markets in South Korea were closed on Wednesday. Of particular concern to investors are the trade frictions between the U.S. and other countries. Last week, the Donald Trump administration imposed metal tariffs on Canada, Europe and Mexico — all of whom criticized and retaliated to Washington's decision. The White House remained upbeat, however, stating that it continues to seek strong ties with the nations involved. Now a summit between leading political figures is due to take place in Quebec, Canada, this week, with the topic of trade expected to be of key importance. The U.S. trade deficit shrank 2.1% in April—before the Trump tariffs took effect—and tumbled to a seven-month low. But the gap is still on track to widen in 2018 to the highest level in a decade. Meanwhile, the productivity of American businesses rose a revised 0.4% annual pace in the first quarter instead of 0.7% as originally reported. Output—or goods and services produced—climbed 2.7% instead of 2.8%, while unit-labor costs, or how much it costs to make each product, rose by 2.9%, a bit higher than the preliminary 2.7% estimate, the government said Wednesday. In earnings, Thor Industries, Cloudera and Okta are scheduled to publish corporate earnings after the bell. Elsewhere, any developments surrounding talks between the U.S. and North Korea will continue to keep investors on edge, as a summit between the two nations draws closer. Oil prices slipped on Wednesday as worries about oversupply ahead of a potential output increase from OPEC offset signs that Venezuela will halt some crude exports. Falling Venezuelan oil output helped push crude benchmark Brent to more than $80 a barrel last month, but prices have eased since then on talk of higher supply by other members of the Organization of the Petroleum Exporting Countries. Brent was down 51 cents a barrel at $74.87 by 8:41 a.m. ET (1241 GMT). U.S. light crude fell 46 cents to $65.06. Gold edged higher on Wednesday, propped up by a weaker dollar, but it was unlikely to make a significant move before an expected U.S. rate hike next week and amid trade tensions. Spot gold was up 0.1 percent at $1,296.96 per ounce at 0900 GMT while U.S. gold futures for August delivery dipped 0.1 percent to $1,300.90 per ounce.