US open: Stocks on the back foot ahead of Presidents Day

Maryam Cockar Sharecast | 17 Feb, 2017 16:07 | | |

New York Stock Exchange, NYSE, markets, Wall Street. Photo: Herval

US stocks were on the back foot on Friday after Wall Street’s seven-day winning streak came to an end in the previous session as investors took a breather ahead of Presidents Day.

The Dow Jones Industrial Average was down 0.3% to 20,558.78, the Nasdaq was flat at 5,813..90 and the S&P 500 was down 0.2% to 2,342.50 at 1602 GMT.

Financial markets will be closed for Presidents Day on Monday. The currency market will not be affected but volumes could be below average.

On Thursday, stocks ended mixed in a tight range after President Donald Trump said during a press conference that tax reform proposals would come only after a push to replace Obamacare in March. He also said in the conference that he had inherited a “mess” from former President Barack Obama.

Jasper Lawler, senior market analyst at London Capital Group, said: “Markets underwhelmed for a second day with multiple global benchmarks pulling back from record highs. The declines have been light so there’s no justification for alarm."

“After a five-day winning streak markets are looking a bit tired. If there were to have been any catalyst for the resumption of risk-taking, it wasn’t to be found in President Donald Trump’s press (bashing) conference.”

Meanwhile, oil prices retreated with West Texas Intermediate down 0.22% to $553.24 per barrel and Brent crude 0.18% weaker to $55.55.

In currency markets, the dollar was up 0.52% against the pound to 0.8049 and rose 0.43% versus the euro to 0.9409 but was down 0.26% against the yen to 112.95.

On the corporate front, shares in Kraft Heinz surged 8.58% after its proposed to merge with British consumer products giant Unilever. The $143bn takeover bid was rejected by Unilever saying that it has no financial or strategic merit, according to Reuters, although talks are ongoing.

Deere & Co fell 1.03% despite quarterly profit and revenue beat forecasts and raised it forecasts.

JM Smucker Co slumped 4.19% after reporting a fall in third quarter sales and giving a downbeat 2017 outlook.

Campbell Soup dipped 5.08% after second quarter profit missed expectations, although earnings beat forecasts.

UnitedHealth Group was down 4.16% after the US Justice Department said it would sue the company for allegedly overcharging Medicare millions of dollars

WebMD Health Corp shares were suspended late on Thursday after the company said it may put itself up for sale.

More news

27 Mar US close: Stocks end mostly lower amid doubts about Trump agenda

US stocks ended mostly lower on Monday, with the Dow notching its longest losing streak since August 2011 amid growing doubts about President Donald Trump’s ability to push through his economic agenda.

27 Mar Fed's Evans sounds dovish note

A top US central bank official sounded a relatively dovish note on Monday.

27 Mar Bonds: Treasuries start week on a strong note, Bunds underperform

These were the movements in the most closely-followed 10-year sovereign bond yields: US: 2.37% (-4bp)UK: 1.17% (-3bp)Germany: 0.42% (-0bp)France: 0.97% (-1bp)Spain: 2.20% (-3bp)Italy: 2.20% (-3bp)Portugal: 4.08% (-6bp)Greece: 7.26% (-15bp) Japan: 0.06% (-1bp)

27 Mar Europe close: Stocks end lower, but off worst levels

Europe' main indices traded lower on Monday as doubts over US president Donald Trump’s agenda crept in, sending the euro higher, despite an upbeat reading on German business confidence and positive news on the political front in the Eurozone's largest nation.

27 Mar London close: FTSE falls on resources, financials as Trump's ability to deliver scrutinised

Equities in London closed the day much lower with investors selling resources stocks and heading for gold on doubts about whether US President Donald Trump will be able to deliver on his healthcare and fiscal stimulus promises.

27 Mar Directors dealings: Babcock chief, chairman buy on weakness

Babcock's boss and chairman both picked up shares in the company they lead at the start of the week.

27 Mar US open: Dow heading to longest losing run in 6 years on Trump concerns

US stocks opened lower on Monday putting the Dow on track for its longest losing streak since 2011 amid growing doubts about President Donald Trump’s ability to push through his economic agenda.

27 Mar Tuesday preview: Ladbrokes Coral and Wolseley results due

Tuesday's financial calendar sees Ladbrokes Coral and Wolseley among the larger of those reporting results, while headlines may be grabbed by the Scottish Parliament as it votes on whether to support a second independence referendum the day before Theresa May's planned announcement about kicking off the Brexit negotiation process.

27 Mar FTSE 250 movers: Inchcape motors on; miners lose their lustre

A positive note on Inchcape saw shares in the automotive services and retailer lead the risers on the FTSE 250.

27 Mar Exova confirms discussions with potential suitors

Exova Group, noting recent market speculation, confirmed on Monday it received proposals from Element Materials Technology, Jacobs Holding and PAI Partners SAS regarding a possible cash offer for the company.