MARKET SNAPSHOT: Wall Street Faces Choppy Day As Traders Wait For Rate Clues
30 August 2016 - 10:55AM
Dow Jones News
By Sara Sjolin, MarketWatch
Apple faces up to $19 billion tax bill in EU ruling
U.S. stock futures struggled for direction on Tuesday, with
investors playing a waiting game in the runup to the key jobs
report later this week, as they weigh the prospects for an interest
rate rise.
Investors will be watching comments from Federal Reserve Vice
Chairman Stanley Fischer later this morning, to see whether he
continues the hawkish tone taken by Fed Chairwoman Janet
Yellen.
Futures for the Dow Jones Industrial Average rose 1 point to
18,490, while those for the S&P 500 index slipped 0.80 point to
2,178.50. Futures for the Nasdaq-100 index were down 1.50 points to
4,791.50.
"Tuesday is likely to be one of the quieter days in an otherwise
busy and important week for the markets, with investors having one
eye on Friday's U.S. jobs report following Janet Yellen's hawkish
comments at Jackson Hole on Friday," said Craig Erlam, senior
market analyst at Oanda, in a note.
U.S. stock markets closed higher on Monday
(http://www.marketwatch.com/story/worries-about-yellens-jackson-hole-speech-stop-dow-futures-in-their-tracks-2016-08-26),
rebounding from Yellen-fueled losses
(http://www.marketwatch.com/story/worries-about-yellens-jackson-hole-speech-stop-dow-futures-in-their-tracks-2016-08-26).
The S&P 500 index rose 0.5% Monday, while the Dow average ended
0.6% higher.
In her Jackson Hole comments, Yellen said the U.S. economy is
improving, and that strengthens the case for an increase in
interest rates this year. The nonfarm payrolls report at the end of
the week will be assessed as to how it affects the prospects for
tighter policy, and whether that could come as soon as the
September meeting.
"Should we get a strong jobs report for August, then the next
FOMC decision in three weeks will absolutely be a live meeting,
whether markets want to accept that or not," Erlam said.
"A weak report probably leaves us back at square one from where
the markets are positioned, because even now, they're reluctant to
buy what the Fed is selling," he added.
Economic docket: Fischer appears on Bloomberg TV between 6:30
and 7 a.m. Eastern Time on Tuesday. The Fed's vice chairman
heightened expectations for an imminent rate hike on Friday, when
he said Yellen's comments were "consistent" with possibly two rate
hikes
(http://www.marketwatch.com/story/feds-fischer-yellens-speech-consistent-with-possibility-of-2-interest-rate-hikes-this-year-2016-08-26)
this year.
In data releases, consumer confidence for August is due at 10
a.m. Eastern Time. It is expected to slide back to 97.0 from 97.3
in July
(http://www.marketwatch.com/story/consumer-confidence-holds-steady-in-july-2016-07-26),
according to economists polled by MarketWatch.
See:
Movers and shakers: Shares of Apple Inc.(AAPL) slipped 0.3%
premarket on reports the European Union's antitrust regulator will
rule the tech giant's tax deals in Ireland were illegal. Analysts
have estimated Apple could be ordered to pay back up $19 billion in
taxes
(http://www.marketwatch.com/story/apple-set-to-face-up-to-19-billion-tax-bill-in-eu-ruling-2016-08-30).
United Continental Holdings Inc.(UAL) rose 3.3% ahead of the
bell after the airline late Monday said it has named Scott Kirby as
president
(http://www.marketwatch.com/story/united-continental-names-former-american-airlines-exec-president-2016-08-29).
Kirby was previously president at American Airlines Group Inc.
(AAL) .
Shares of Hershey Co.(HSY) could be active after Mondelez
International Inc.(MDLZ) said late Monday it has ended its bid to
acquire
(http://www.marketwatch.com/story/hershey-wanted-at-least-125-a-share-from-mondelez-2016-08-29)
the chocolate maker.
Other markets: Asian markets closed mostly higher
(http://www.marketwatch.com/story/asian-markets-get-a-lift-from-us-stock-gains-2016-08-29),
rebounding from losses on Monday.
It was a similar story in Europe, where all major indexes traded
in positive territory.
Oil futures
(http://www.marketwatch.com/story/oil-prices-nudged-higher-by-bargain-hunting-2016-08-30)
rallied, while metals dropped across the board. The dollar rose
against other major currencies, with the ICE Dollar Index climbed
0.2% to 95.785.
(END) Dow Jones Newswires
August 30, 2016 05:40 ET (09:40 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.