MSC Industrial Direct (NYSE:MSM)
Historical Stock Chart
6 Months : From May 2019 to Nov 2019
By Chris Matthews and William Watts, MarketWatch
Fed chairman slated to testify at 10 a.m. Eastern Time
Stock-index futures pointed slightly lower Wednesday, with investors appearing to stick to the sidelines ahead of testimony by Federal Reserve Chairman Jerome Powell before lawmakers.
How are the major benchmarks faring?
Futures on the Dow Jones Industrial Average were down 51 points, or 0.2%, at 26,719, while S&P 500 futures declined 6.6 points, or 0.2%, to 2,975.75. Nasdaq-100 futures fell 15.7 points, or 0.2%, to 7,829.50.
Equities ended mostly higher on Tuesday, with the S&P 500 rising 3.68 points, or 0.1%, to end at 2,979.63, while the Nasdaq Composite rose 43.35 points, or 0.5%, to 8,141.73.
The Dow bucked the trend, however, slipping 22.65 points, or 0.1%, to finish at 26,783.49. Major indexes remain less than 1% away from all-time closing highs set last Wednesday.
What's driving the market?
Stocks have seen rangebound trade this week as investors await remarks by Powell for confirmation that the Fed is on track to deliver a rate cut at the end of the month, as well as for clues to the scope for additional easing.
Powell's prepared remarks are scheduled for release at 8:30 a.m. Eastern Time. He is slated to appear before the House Financial Services Committee at 10 a.m.
Powell's update "is likely to greatly shape equity traders' views," said David Madden, market analyst at CMC Markets UK, in a note. "Throughout June there was a growing belief that the Fed would cut rates in July, and later this year, but given the solid nonfarm payrolls report last Friday, dealers are less convinced the Fed will lurch to a very dovish stance."
Read:Could the Fed surprise the stock market by skipping a July rate cut? It's not out of the question (http://www.marketwatch.com/story/could-the-fed-surprise-the-stock-market-by-skipping-a-july-rate-cut-its-not-out-of-the-question-2019-07-08)
(http://www.marketwatch.com/story/could-the-fed-surprise-the-stock-market-by-skipping-a-july-rate-cut-its-not-out-of-the-question-2019-07-08)Also see:How the stock market's 'bad news is good news' run could come to an end (http://www.marketwatch.com/story/why-the-stock-markets-bad-news-is-good-news-equation-might-not-survive-earnings-season-2019-07-09)
(http://www.marketwatch.com/story/why-the-stock-markets-bad-news-is-good-news-equation-might-not-survive-earnings-season-2019-07-09)Investors are also expected to keep an eye on renewed U.S.-China trade talks, though there remains little sign of significant movement, analysts said.
China's Commerce Ministry said the country's top trade negotiator, Vice Premier Liu He, conducted a phone call with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, according to Reuters (https://nationalpost.com/pmn/news-pmn/politics-news-pmn/chinas-vice-premier-talks-with-u-s-trade-officials-commerce-ministry).
Aside from Powell's testimony, the economic calendar also features the release of minutes of the Fed's last policy meeting at 2 p.m. Eastern Time. Ahead of that, data on May wholesale inventories are set for release at 10 a.m. and St. Louis Fed President James Bullard is due to deliver remarks at 1:50 p.m.
Which stocks are in focus?
Shares of MSC Industrial Direct Co.(MSM) might be in focus after fiscal third-quarter profit and revenue (http://www.marketwatch.com/story/msc-industrial-hikes-dividend-to-more-than-double-its-peers-sp-500-2019-07-10) missed expectations and the company provided a downbeat outlook, while boosting its dividend by 19%.
T-Mobile US Inc. (TMUS)will replace (http://www.marketwatch.com/story/t-mobile-to-replace-recently-acquired-red-hat-in-sp-500-2019-07-09) Red Hat Inc. in the S&P 500, S&P Dow Jones Indices said after the close of trade Tuesday, following the completion (http://www.marketwatch.com/articles/ibm-completes-red-hat-deal-the-largest-software-acquisition-ever-51562700501) of IBM Corp.'s (IBM) acquisition of Red Hat. T-Mobile shares rose 3.3% in off-hours trade.
How are other markets trading?
Stocks in Asia closed mixed on Wednesday, with Japan's Nikkei 225 losing 0.2%, Hong Kong's Hang Seng Index rising 0.3% and China's Shanghai Composite Index and Shenzhen Composite index retreating 0.4% and 0.5%, respectively.
European stocks were trading lower (http://www.marketwatch.com/story/european-stocks-lower-as-eu-cuts-growth-forecast-and-all-eyes-on-the-fed-2019-07-10), with the Stoxx Europe 600 down 0.1%.
In commodities markets, the price of crude oil (http://www.marketwatch.com/story/oil-heads-for-fifth-straight-gain-buoyed-by-expected-drop-in-us-stockpiles-2019-07-10) rose 2.4%, while gold retreated 0.2%. The U.S. dollar meanwhile, edged lower against a basket of its peers.
(END) Dow Jones Newswires
July 10, 2019 07:38 ET (11:38 GMT)
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