By Benjamin J. Chuckrow
Monday, May 20, 2019 – U.S. futures are pointing to a lower open Monday as investors continue to digest updates on trade negotiations between the U.S. and China. The Dow is down 0.7%, while the S&P 500 is losing 0.9% in pre-market action. The Nasdaq 100 is trading 1.6% below fair value on the GLOBEX.
The S&P 500 lost 0.8% in volatile trading last week, with the worst session since early January last Monday giving way to the best-three day rally in two months. This morning, chipmakers are extending their decline. Shares have been pressured as the latest trade rhetoric has been focused on Huawei after the U.S. banned the Chinese Tech and telecom giant from conducting business with American companies without government approval. In earnings, big-box retailers will dominate this week’s calendar, with Target, Best Buy, and Nordstrom reporting. Other key releases come from Lowe’s and Home Depot.
Overseas, stocks are mixed as investors digest election developments. India’s benchmark Sensex index surged 3.6% to a fresh record high, as exit polls showed incumbent Prime Minister Modi likely to retain power. In Australia, the nation’s benchmark ASX 200 index advanced 1.7% following a surprise victory for the conservative government. Japan’s Nikkei 225 rose 0.2% after its first-quarter GDP figure came in above forecasts.
Treasuries are little changed, with the yield on the 10-year note flat at 2.39%. On the data front Monday, the Chicago Fed National Activity Index is the sole release, with the economic gauge coming in below expectations. In commodities, WTI crude is rising 0.3% to $62.93/barrel.
This information was prepared by or obtained from sources that Wells Fargo Advisors believes to be reliable, but its accuracy is not guaranteed. The report herein is not a complete analysis of every material fact in respect to any company, industry or security. The opinions expressed here reflect the judgment of the authors as of the date of the report and are subject to change without notice. Any market prices are only indications of market values and are subject to change. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Contact your Financial Advisor for additional information.
Benjamin J. Chuckrow
Senior Vice President – Branch Manager
Stuyvesant Plaza Complex
Wells Fargo Advisors
4 Tower Pl, 9th Floor, Albany, NY 12203
518-464-2714 Cell 518-316-3848