Tuesday March 6th

6-03-2018

Dow futures rise after North Korea says it's willing to talk about denuclearization

U.S. stock index futures posted strong gains ahead of Tuesday's open after North Korea expressed a willingness to talk about denuclearization. Easing concerns surrounding a potential trade war also helped futures. Around 6:30 a.m. ET, Dow futures were up 179 points, indicating a rise of 177 points at the open. The Nasdaq and S&P 500 futures also pointed to strong gains for their respective markets. North Korea said there was no need to keep its nuclear program as long as there was no military threat against it and the safety of its regime was secured, Chung Eui-yong, head of the South Korean presidential National Security Office, told a media briefing. The moves in pre-market trade come after a strong finish on Wall Street Monday, where the Dow Jones industrial average soared more than 300 points by the close, bouncing back from weakness seen earlier on in the session. Last week, President Donald Trump announced that the U.S. would be imposing new tariffs on aluminum and steel, before going onto threaten European carmakers with a tax on imports if the European Union retaliated over the U.S. administration's tariff plans. However, on Monday, fears eased after Trump suggested in a tweet that he could drop tariffs if a "new and fair" NAFTA agreement was signed. On Tuesday, Donaldson, Target, Autodesk, Ross Stores, H&R Block, Bluegreen Vacations, Sunrun and Urban Outfitters are all due to report their latest financial figures. Meantime, data on factory orders are due to come out at 10 a.m. ET. Elsewhere in the economic space, a number of officials from the U.S. Federal Reserve are due to speak. New York Fed President William Dudley will be at a USVI Nonprofit Leaders Breakfast Roundtable, where he's set to talk on recovery efforts following Hurricane Irma and Maria. Fed Governor Lael Brainard is in New York at a Money Marketeers Forum, while Dallas Fed President Robert Kaplan will be at CERAWeek in Houston. Investors will be paying close attention to each person's comments, following Fed Chair Jerome Powell's remarks last week, which stated that the Fed could raise interest rates three or more times during 2018. Also on Tuesday, investors will remain on edge for any further developments surrounding tariffs and trade negotiations. Trump is set to meet with Stefan Lofven, the prime minister of Sweden, where the two leaders are expected to talk about investment, global security and trade. Asian stocks rallied as concerns over a potential trade war faded on Tuesday, with gains in the region led by Japan's benchmark Nikkei. Japan's Nikkei 225 jumped 2.14 percent, or 450.83 points, with the dollar extending gains against the yen as trade-related fears abated. Over in South Korea, the benchmark Kospi advanced 1.32 percent, with gains seen across sectors, including chipmakers. Hong Kong's Hang Seng Index gained 1.39 percent after the index slipped below the 30,000 level in the last session. Gains on the mainland were smaller, with the Shanghai compositeedging up by 0.21 percent and the Shenzhen composite adding 0.67 percent. Oil prices extended gains on Tuesday for the fifth straight day, underpinned by robust demand forecasts and prospects for informal contacts sought by OPEC with U.S. shale oil producers at a key industry meeting in Houston this week. International benchmark Brent crude futures climbed to $65.99 per barrel, up 45 cents, or 0.7 percent. U.S. West Texas Intermediate (WTI) crude futures advanced to $63.09 a barrel, up 52 cents, or 0.8 percent. Gold prices edged up early on Monday on a softer dollar, amid worries about a global trade war even as U.S. President Donald Trump faced pressure from political and trade allies over his plan for steel and aluminum tariffs. Spot gold was trading up 0.2 percent at $1,322.88 per ounce at 0117 GMT. U.S. gold futures for April delivery rose 0.3 percent to $1,323.70 per ounce.