MARKET SNAPSHOT: Dow Futures Rise More Than 100 Points As Stock Market Aims For Best Weekly Run In A Month
March 15 2019 - 7:57AM
Dow Jones News
By Mark DeCambre, MarketWatch
Expiration of stock-index and stock futures and options are a
factor Friday
U.S. stock-index futures on Friday looked set to open higher,
and finish a week with sharp gains, shaking off worries about
slowing global growth, notably in China. Stocks will also be
affected by Friday's quadruple witching, the simultaneous
expiration of stock-index and individual stock options and
futures.
How did major indexes fare?
Futures for the Dow Jones Industrial Average were up 132 points,
or 0.5%, at 25,842, while the S&P 500 index climbed 12.95
points, or 0.5%, at 2,823, and the Nasdaq-100 futures advanced 42
points to 7,309.25, a gain of 0.6%.
On Thursday, the Dow rose 7.05 points to 25,709.94, a gain of
less than 0.1%. The S&P 500 index slipped 2.44 points to
2,808.48, finishing little changed, and the Nasdaq Composite Index
shed 12.50 points, or 0.2%, to 7,630.91.
For the week, the Dow is set for a weekly gain of 1%, while the
S&P 500 is set for a weekly gain of 2.4%, and the Nasdaq has
risen 3% thus far in the week, as of Thursday's close. The weekly
gains would represent the best since the period ended Feb. 15,
according to FactSet data.
What are benchmarks doing?
Gains for equities on Friday come as Chinese Premier Li Keqaing,
Beijing's No. 2 leader after President Xi Jinping, expressed
optimism that a trade deal between China and the U.S. can be
achieved that suits both parties.
He also denied accusations that the country used its technology
to spy on other countries, attempting to lay to rest one of the key
issues that stand between the U.S. and China in a trade
agreement.
"This is not how China behaves. We did not do that and will not
do that in the future," Li said in translated remarks at the
conclusion of the National People's Congress on Thursday.
He added that the parties may be several weeks away from a
tariff agreement, but described China as "very responsible and
reasonable." Separately, U.S. Treasury Secretary Steven Mnuchin,
speaking to reporters
(https://www.reuters.com/article/us-usa-trade-china-talks/trump-xi-summit-will-not-happen-in-march-mnuchin-idUSKCN1QV2B2)
after his Senate testimony in front of a finance committee said no
date had been set for a meeting between Xi and Trump to complete a
deal, adding that "there's still a lot of work to do."
Bloomberg News a day ago said a meeting that had tentatively
been penciled in for the end of March would be pushed back to
April.
Trade talks between the two of the globe's largest economies has
been chief among concerns for investors because an heated war
between the two have the potential to hurt economies
world-wide.
Meanwhile, the Bank of Japan left interest rates unchanged, as
expected, while also maintaining purchases of Japanese government
bonds.
Separate from its comments on trade, China's Li underscored
weakness in the world's second-largest economy and promised
implementation of ways to boost it, including cutting interest
rates and banks' reserve requirement ratio.
Which data are in focus
At 8:30 a.m. Eastern Time, the Empire state manufacturing index
for March is set to be released, while readings on industrial
production and capacity utilization for February are scheduled to
come out at 9:15 a.m., while a report on job openings and consumer
sentiment will be released at 10 a.m.
What are strategists saying?
Pierre Veyret, technical analyst at ActivTrades said "this
risk-on sentiment was mainly built on ground of a widespread
optimism following President Trump's recent statement about a "very
responsible and reasonable China". The US President also added he
will have news on a China trade deal in the next 3-4 weeks and that
could lead to an extension of this year's rally on stocks."
"Its quadruple options expiration day, which is likely to cause
a swelling of volume and volatility," wrote Peter Cardillo, chief
market economist at Spartan Capital Securities.
(END) Dow Jones Newswires
March 15, 2019 07:42 ET (11:42 GMT)
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