The Breakfast Briefing: U.S. Futures Point To Mixed Open

Ted

FYI: U.S. stock index futures were mixed Thursday morning.

At around 04:30 a.m. ET, Dow futures rose 5 points, indicating a negative open of more than 6 points. Futures on the S&P and Nasdaq were slightly higher.

The moves in pre-market trade come amid heightened concerns about the health of the world’s largest economy. On Wednesday, unexpectedly weak retail sales data fuelled fears about a possible recession.

U.K. stocks and the British pound entered another day of volatility as a crucial European Union summit kicks off in Brussels without a Brexit deal in place.

The pound fell 0.4% on the dollar on Thursday after Prime Minister Boris Johnson’s proposals—especially those regarding how to avoid a physical border on the island of Ireland while still reaching an accord on customs and taxes—failed to get the backing of Northern Irish allies in the U.K. parliament.

The U.K.’s FTSE 250 index, a gauge that includes local companies with significant domestic operations, dropped 0.5%. European diplomats said a draft text had been completed and was in the U.K. government’s hands to decide whether to sign off on. If approved by EU leaders, any agreement would still need to be ratified in the U.K. and European parliaments.

Elsewhere, markets wavered. Futures tied to the Dow Jones Industrial Average index and the Shanghai Composite benchmark were almost flat.

The Stoxx Europe 600 index swung between gains and losses before edging up 0.2%, with telecommunications companies leading the gains.

Shares in Ericsson rallied 6.7% after the Swedish telecom-equipment maker reported better-than-expected third-quarter results and raised its sales target. Elisa Oyj, the Finnish telecommunications group, rallied 5.8% after the company boosted its earnings guidance.

WH Smith gained 4.7% after the U.K. retailer agreed to buy Marshall Retail Group for $400 million.

Later in the day, investors will be watching for further signals on the strength in the world’s largest economy as the Federal Reserve releases industrial production figures for September. Economists forecast overall industrial output declined in September, after rising 0.5% in August.

Regards,
Ted

WSJ:
https://www.wsj.com/articles/pound-dips-as-brexit-talks-hit-a-roadblock-11571303767

Bloomberg:
https://www.bloomberg.com/news/articles/2019-10-16/asia-stock-futures-mixed-treasuries-advance-markets-wrap?srnd=premium

IBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-netflix-earnings-marijuana-stocks-cronos-group-ibm/

CNBC::
https://www.cnbc.com/2019/10/17/stock-market-economic-data-trade-war-fears-in-focus-on-wall-street.html

Reuters:
https://uk.reuters.com/article/uk-morning-bid-17-10/daily-briefing-hanging-on-a-summit-idUKKBN1WW0XX

U.K.
https://uk.reuters.com/article/uk-britain-stocks/british-mid-caps-trip-as-brexit-mood-sours-grafton-slumps-idUKKBN1WW0T8

Europe:
https://www.reuters.com/article/us-europe-stocks/european-shares-slip-on-brexit-anxiety-idUSKBN1WW0SB

Asia:
https://www.marketwatch.com/story/asian-markets-mixed-as-us-china-trade-deal-needs-more-time-2019-10-16/print

Bonds:
https://www.cnbc.com/2019/10/16/us-treasury-yields-china-hongkong-retail-sales.html

Currencies:
https://www.cnbc.com/2019/10/17/forex-markets-european-union-summit-australian-dollar-in-focus.html

Oil:
https://www.cnbc.com/2019/10/17/oil-markets-us-oil-inventories-in-focus.html

Gold:
https://www.cnbc.com/2019/10/17/gold-markets-us-economic-data-in-focus.html

Cuirrent Futures:
https://finviz.com/futures.ashx