Wednesday March 28th

28-03-2018

Dow is set to open 100 points higher as Boeing, tech rebound

U.S. stock index futures rose ahead of Wednesday's open as tech shares and Boeing rebounded from steep losses in the previous session. Around 8:05 a.m. ET, Dow Jones industrial average futures rose 89 points, indicating a gain of 100 points at the open. The Nasdaq and the S&P 500 futures also indicated a positive open for their respective markets. Boeing shares, which fell 2.4 percent on Tuesday, rose more than 1 percent in the premarket. Technology stocks also rebounded, with Facebook, Amazon, Netflix and Alphabet all rising before the bell. The moves in premarket trade come after Wall Street closed in the red Tuesday, with the Dow closing down more than 340 points. The main driver stirring up sentiment in domestic and international markets over the past 24 hours concerns social media. Last week, reports emerged alleging that Cambridge Analytica, an analytics company, had gathered data from 50 million Facebook profiles without users' permission. While Facebook has since come out to apologize and try to rectify the matter, concerns remain over data use. On Tuesday, shares of the social media group fell almost 5 percent. Facebook CEO Mark Zuckerberg will reportedly testify in front of Congress soon, in regards to the firm's data practices and the Cambridge Analytica leak. The company's stock rose 1 percent before the bell Wednesday. Meantime, investors around the world have been keeping a close eye on global trade issues, debating what economic implications there could be if a trade war occurred between China and the U.S. This comes after President Donald Trump signed an executive memorandum that would inflict tariffs on Chinese imports — of up to $60 billion, prompting the Asian nation to retaliate. Switching focus to Wednesday's session, a new batch of economic data are due. T he third reading of the fourth-quarter's gross domestic product (GDP) and advanced economic indicators are both due at 8:30 a.m. ET. Meantime at 10 a.m. ET, pending home sales are scheduled to come out. Asian stocks closed lower on Wednesday trade after U.S. stocks fell sharply on the back of declines in technology names. That cut short a rally seen in Europe and Asia's Tuesday session linked to an apparent easing in trade-related tensions. In Tokyo, the Nikkei 225 fell 1.34 percent, or 286.01 points, to close at 21,031.31, paring steeper losses of more than 2 percent seen earlier. Over in Seoul, the benchmark Kospi slid 1.34 percent to finish at 2,419.29 as technology stocks followed the lead from U.S. tech. Hong Kong's Hang Seng Index lost 1.7 percent by 3:05 p.m. HK/SIN, with the tech sector the biggest loser. On the mainland, the Shanghai composite declined 1.4 percent to end at 3,122.22, with the index closing lower once more after breaking a four-day losing streak in the last session. The Shenzhen composite edged down by 0.95 percent to end at 1,812.36. Oil fell on Wednesday as investors took profit on a rally the day before to this year's highs after a report showed a surprisingly large increase in U.S. crude inventories. June Brent crude futures were last down 39 cents on the day at $69.07 barrel, while the May contract, which expires on Thursday, was down 26 cents at $69.85. WTI futures fell 47 cents to $64.79 a barrel. Gold eased on Wednesday as a recovery in the dollar pulled prices further from the previous day's near six-week peak, though a drop in equities on the back of jitters over a U.S.-China trade stand-off kept the metal underpinned. Spot gold was down 0.58 percent at $1,336.58 an ounce at 8:05 a.m. EST, while U.S. gold futures for April delivery were down 0.5 percent at $1,341.50 an ounce.