US pre-open: Stocks seen touch higher amid tax reform hopes

Michele Maatouk Sharecast | 21 Apr, 2017 11:05 | | |

New York Stock Exchange, markets, traders, USA, stocks, shares, Wall Street. Photo: Pete Bellis

US futures suggested a fairly muted open on Wall Street on Friday, although some gains were expected following solid earnings in the previous session and after Treasury Secretary Steven Mnuchin said Trump’s administration was close to bringing forward major tax reform.

At 1100 BST, Dow Jones Industrial Average and S&P 500 futures were flat, while Nasdaq futures were up 0.1%.

Speaking at the Institute of International Finance Washington Policy Summit, Mnuchin said the White House will unveil a plan "very soon”, adding that he hoped passing a tax overhaul will not "take till the end of the year”.

More broadly, investors were also likely to be digesting events in Paris late on Thursday, after a police officer was killed and two others injured in a shooting on the Champs-Élysées that was later claimed by so-called Islamic State. It transpired that the gunman - who was shot dead as he tried to flee the scene - had been under preliminary investigation for terrorism but had been let go due to a lack of evidence.

The shooting came just three days before the first round of presidential elections.

IG analyst Joshua Mahony said: “While we are no clearer on what this weekend’s French election result will be, we at least received hints from Treasury Secretary Mnuchin that the tax reform plans are now ‘pretty close’. The subsequent dollar and stock rally off the back of Mnuchin’s comments have largely paved the way for today’s trade, as traders seek to ascertain whether this is the beginning of a recovery following weakness across both sectors.”

In corporate news, earnings are due from General Electric, Honeywell International and Schlumberger ahead of the open.

Visa Inc shares were higher in pre-market trade after it posted better-than-expected second-quarter results late on Thursday.

Toy maker Mattel Inc could also be active after its quarterly results late on Thursday fell short of analysts’ expectations.

On the macroeconomic front, Markit’s manufacturing and services PMIs are due at 1445 BST, while existing home sales are at 1500 BST.

More news

22 Oct Sunday newspaper round-up: Spire, Mediclinic, Rolls-Royce, Brexit, SSE, GKN

A South African healthcare provider is plotting a £1.3bn swoop on Spire Healthcare, Britain’s largest chain of private hospitals. Mediclinic International is working with advisers from Morgan Stanley on a possible offer, according to City sources. It already has a 29.9% stake in Spire - the maximum that can be held without making an offer for the other shares - having staged a raid on the stock two years ago. - The Sunday Times

22 Oct US close: S&P 500 notches up sixth weekly gain in a row, as investors come off sidelines

Wall Street continued to climb the proverbial 'wall of worry' as Senate approval of the White House's budget resolution for fiscal year 2018, which many believe paves the way for tax cuts, powered the S&P 500 to a sixth consecutive weekly gain.

20 Oct FX round-up: Dollar boosted by tax plans, pound rallies on Brexit hopes

President Donald Trump's tax reforms made the dollar the early story, before a sterling narrative took over as Brexit developments filtered through from the EU 27 in Brussels.

20 Oct President Trump wrongly links rise of UK crime to 'radical Islamic terror'

US President Donald Trump was accused of fuelling hate crimes after he said the UK crime rate was linked to "radical Islamic terror".

20 Oct Europe close: Stocks end near session lows despite US tax reform optimism

European stocks finished near their worst levels of the day despite optimism regarding prospects for the US economy.

20 Oct London close: Footsie ends flat as pound bounces back

London stocks finished the Friday session almost exactly flat despite encouraging noises emerging from Brussels mingled with optimism stateside over proposed tax reforms.

20 Oct Berenberg ups Cobham target but says premium valuation "unwarranted"

Despite Cobham share's outperformance over the past six months, Berenberg cautioned clients about the near-term strength of various of the firm's end-markets, alongside operational challenges that would require time to resolve and, for a time, scupper hopes that the dividend would be reinstated.

20 Oct Octagonal 'extremely pleased' as it reports record revenue and profits

Octagonal updated the market on its trading on Friday, based on the unaudited interim figures for the six months to 30 September for its wholly-owned subsidiary, Global Investment Strategy UK, saying it was “extremely pleased” with the record revenues and profits achieved.

20 Oct Marlowe trading in line as acquisitions integrate 'well'

Support services group Marlowe updated the market on its trading for the six months to 30 September on Friday, saying trading in the first six months of the financial year was in line with board expectations.

20 Oct Ncondezi agrees non-binding development offer with CMEC and GE

Ncondezi Energy announced on Friday that it has agreed - in principle - to the terms of a non-binding offer with China Machinery Engineering Corporation and General Electric South Africa to enter into exclusive negotiations to develop, construct and operate the integrated Ncondezi 300MW coal-fired power project and open pit coal mine in Tete, Mozambique.