Wall Street prepares for Mixed Open while Tech Holds Back Bulls, Dow looks for new highs



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Wall Street was set to open on Tuesday, December 5, as investors examined Republican tax reform plans and dodged the recent weakness in technology stocks that has held gains for equity markets across the board. world.

Early indications of US stock futures suggested another solid session for the Dow Jones Industrial Average, which closed at a record high of 24,290.05, on Monday, December 4, with investors expecting a 48-point gain for the benchmark in the opening bell.

However, while the S & P 500 had a modest price of 1.25 points, it is likely that the Nasdaq will lose 15 points as technology shares continue to sell after last week's concerns over the "supercycle" of the chip sector and details of the Senate Tax Plan that could limit deductions related to intellectual property and investment. The S & P technology sector index fell almost 2% on Monday, while the Nasdaq Tech 100 index fell 1.8%.

The economic calendar is relatively light for the session, with commercial data from October prior to the opening bell and a final reading activity of the service sector scheduled for 10 a. m. ET. Investors will also earn third-quarter earnings from AutoZone Inc. (AZO) and HD Supply Holdings Inc (HDS) before the start of operations and an update from Dave & Busters Entertainment Inc. (PLAY) after the closing bell.

The actions of Snap Inc. (SNAP) were a prominent element in the operations prior to the commercialization, with a rise of 5% after two investment banks raised their recommendations on the application of social networks as Facebook Inc. (FB) in the youth courier market.

European stocks opened strongly on Tuesday, but regained gains amid concerns about the strength of the technology sector and the late collapse of a possible breakthrough in the Brexit talks on Tuesday.

The German DAX fell 0.55%, with Deutsche Bank AG (DB) falling 0.35% amid reports that Special Advisor Robert Mueller asked the largest German lender to provide details about the accounts of US President Donald Trump and his family.

Britain's FTSE 100 had little change since its close of 7,340.91 on Monday, helped by strong gains from Tesco PLC and Sainsbury & # 39; s PLC. Investors also followed closely the progress of the talks between London, Dublin and Brussels on the issue of the Irish border in Brexit Great Britain and the impact it will have on the UK negotiations to exit the European Union, with the pound falling 0.4% to 1.3418.

However, the weakness of the technology sector on Monday and the notable low profitability of the sector in Asian operations at night suggest that investors may be questioning the ability of the technology sector to extend profits into the new year, although A good part of the recent setback is certainly related to the bill for tax reform of the US Senate and the benefits it will offer to rival sectors such as banking and financial actions.

That double dynamic kept technology stocks under pressure in the Asian session and kept gains for the most regional benchmark, the MSCI Asia Index excluding Japan, and reduced the Nikkei 225 to a 0.4% loss.

Part of the overall market rotation, however, included an increase in oil prices for rice, which gained thanks to the new Goldman Sachs price projections and the anticipation of a reduction in US crude supplies taken from a Reuters poll of industry experts.

Brent futures contracts for February delivery fell in European operations and were seen to fall 0.35% to $ 63.24 a barrel, while West Texas Intermediate crude contracts for January fell 0.65% to $ 57.13.

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