MARKET SNAPSHOT: Stock-index Futures Drift Lower Ahead Of U.S. Inflation Reading
June 12 2019 - 7:16AM
Dow Jones News
By William Watts, MarketWatch
Tesla shares rise after Musk denies demand problem
Stock-index futures drifted lower Wednesday, a day after the Dow
Jones Industrial Average snapped a six-day winning streak, with
investors awaiting a reading on May consumer inflation as they
continue to eye the U.S.-China trade fight.
Dow futures fell 54 points, or 0.2%, to 26,011, while S&P
500 futures lost 5.4 points, or 0.2%, to 2,881.50. Nasdaq-100
futures were off 30 points, or 0.4%, at 7,488.25.
What's driving the market?
Stocks ended with small losses Tuesday after flipping between
positive and negative territory. The Dow closed 14.17 points lower
at 26,048.51, off 0.1%, while the S&P 500 shed 1.01 points, or
less than 0.1%, to close at 2,885.72. The Nasdaq finished with a
loss of 0.6 points at 7,822.57. The declines ended five-day winning
streaks for both the S&P and the Nasdaq.
U.S. President Donald Trump on Tuesday said he was the one
"holding up" a trade deal with China,
(http://www.marketwatch.com/story/trump-i-have-no-interest-in-trade-deal-until-china-reverses-its-stance-2019-06-11)
saying the two countries would "either do a great deal...or we're
not doing a deal at all."
Analysts blamed the remarks for casting a somewhat negative tone
over global equities.
Investors are also watching protests in Hong Kong. Police on
Wednesday fired tear gas and high-pressure water hoses
(http://www.marketwatch.com/story/renewed-protests-in-hong-kong-as-government-debates-extradition-bill-2019-06-11)
at protesters who massed outside government headquarters in
opposition to a proposed extradition bill that has sparked concerns
over China's control of the semi-autonomous territory.
What's on the economic calendar?
Investors are focusing on inflation data, with the May consumer
price index set for release at 8:30 a.m. Eastern.
What companies are in focus?
Shares of electric car maker Tesla Inc. (TSLA) were 2.6% higher
in premarket action, after Chief Executive Elon Musk late Tuesday
took the stage at the company's shareholder meeting and denied the
company was facing demand and production problems
(http://www.marketwatch.com/story/elon-musk-tesla-does-not-have-a-demand-problem-2019-06-11).
In deal news, France's Dassault Systems SE said it reached an
agreement to acquire U.S. technology group Medidata Solutions
Inc.(MDSO) in an agreement valued at $5.8 billion. Dassault will
offer $92.25 a share for Medidata in an all-cash deal. Medidata
shares were down 4% in premarket action at $90.75 a share.
What are analysts saying?
"President Trump has defended his use of levies, and the threat
of higher levies, as a way of trying to rebalance the trading
relationship with China. Beijing have reiterated their willingness
to hold a firm line against the U.S. The standoff is back at the
forefront of dealers' minds and it has prompted some investors to
take some money off the table," said David Madden, market analyst
at CMC Markets UK, in a note.
(END) Dow Jones Newswires
June 12, 2019 07:01 ET (11:01 GMT)
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