Tuesday November 19th

19-11-2019

Dow set to open at new record, led by Boeing

U.S. stock index futures indicated record highs yet again for Wall Street as gains from Boeing helped offset disappointing quarterly numbers from retailers such as Home Depot and Kohl’s. Around 7:30 a.m. ET, Dow Jones Industrial Average futures were up 45 points, indicating a gain of more than 46 points at the open. S&P 500 and Nasdaq 100 futures also traded higher and pointed to all-time highs. Boeing shares rose more than 1% in the premarket after wrangling up 50 orders for the embattled 737 Max jet at the Dubai Air Show. One order for 20 planes came from an undisclosed buyer while a Kazakhstan-based airline put in another one for 30 planes.  Those gains diverted some attention away from Home Depot and Kohl’s, which dropped on the back of weaker-than-expected same-store sales data for the previous quarter. Home Depot pulled back more than 4% in the premarket while Kohl’s tanked 11.3%. The major averages eked out record closing highs on Monday even as investors dealt with mixed signals on the U.S.-China trade front. CNBC, citing a government source, reported that China is pessimistic about a trade deal with the U.S. This is reportedly due to different views on the cancellation of tariffs. Former White House chief economic advisor Gary Cohn told CNBC Monday that he believes President Donald Trump will go ahead with the Dec. 15 tariffs if the U.S. and China haven’t agreed to a trade deal by then. Meanwhile, Trump spoke with Federal Reserve Chairman Jerome Powell on Monday. Trump tweeted that he “protested” the Fed’s rates being “too high relative to the interest rates of other competitor countries.” On the data front, a reading on housing starts is expected out at 8:30 a.m. ET. The House Permanent Select Committee on Intelligence is holding its latest open hearing as part of the Trump impeachment inquiry, starting at 9 a.m. ET. Stocks in Asia were mixed on Tuesday amid concerns over the state of U.S.-China trade negotiations. Japan’s Nikkei 225 shed 0.53% to close at 23,292.65. The Topix index also declined 0.23% to end its trading day at 1,696.73. In South Korea, the Kospi closed 0.34% lower at 2,153.24. Mainland Chinese stocks were higher on the day. The Shenzhen component advanced 1.8% to 9,889.75 while the Shanghai composite was 0.85% higher at around 2,933.99. The Shenzhen composite gained 1.831% to about 1,646.80. Hong Kong’s Hang Seng index added 1.38%, as of its final hour of trading. Oil extended declines, breaking below $62 a barrel on Tuesday, pressured by limited progress in efforts to resolve the trade conflict between the United States and China as well as an expected rise in U.S. crude inventories. A Chinese government source was quoted by CNBC on Monday as saying there was gloom in Beijing about prospects for a trade deal. The long-running dispute has hit economic growth prospects and clouded the outlook on oil demand. Brent crude, the global benchmark, was down 64 cents at $61.80 a barrel . It had reached $63.65 — the highest since Sept. 24 — on Thursday. U.S. West Texas Intermediate (WTI) crude dropped 66 cents to $56.39. Gold fell on Tuesday, erasing gains from earlier in the session, as a temporary reprieve from Washington for China’s Huawei rekindled optimism for a trade deal between the countries and boosted risk sentiment. Spot gold was down 0.2% to $1,467.78 per ounce, reversing course from Asian trading hours, when prices rose to their highest since Nov. 7 at $1,475.40. U.S. gold futures fell 0.3% to $1,468.10 per ounce.