By Mark DeCambre and Chris Matthews, MarketWatch
Bed Bath & Beyond stock rallies on activist news
U.S. stock-index futures rose Tuesday, setting up potential
opening gains for Wall Street as investors attempted to shake off
global growth worries and focus on a resumption of U.S.-China trade
negotiations.
How are benchmarks performing?
Futures for the Dow Jones Industrial Average rose 148 points, or
0.6%, to 25,726, the S&P 500 index advanced 15 points, or 0.5%,
to 2,822, while Nasdaq-100 futures climbed 42.25 points, or 0.6%,
at 7,397.25.
On Monday
(http://www.marketwatch.com/story/us-stock-futures-indicate-fresh-losses-ahead-for-wall-street-2019-03-25),
the S&P 500 index shed 2.35 points to 2,798.36, with technology
and financials leading lower. The Nasdaq Composite Index edged down
5.13 points to 7,637.54, while the Dow rose 14.51 points to
25,516.83.
Read:Why an inverted yield curve doesn't mean investors should
immediately sell stocks
(http://www.marketwatch.com/story/why-an-inverted-yield-curve-doesnt-mean-investors-should-immediately-sell-stocks-2019-03-25)
What's driving the market?
Cabinet-level trade negotiations between Beijing and Washington
were scheduled to kick off, with U.S. Trade Representative Robert
Lighthizer and Treasury Secretary Steven Mnuchin due in China later
this week to help complete long-running discussions between the
world's largest economies.
A resolution of disagreements on tariffs could offer a fillip to
markets and provide some succor to investors wringing their hands
over growing signs of a slowdown in economic expansion across the
globe -- possibly exacerbated by the trade dispute.
Meanwhile, investors were focused on Brexit in the U.K., after
lawmakers' decision late Monday to wrest control of the process of
leaving the European Union away from Prime Minister Theresa May, in
a move that will prompt a series of indicative votes this week
aimed at easing legislative gridlock.
A disorderly exit from the EU by Britain could unsettle global
benchmarks, market participants fear.
Read: Brexit vote leaves European markets in wait-and-see
turmoil
(http://www.marketwatch.com/story/brexit-vote-leaves-european-markets-in-wait-and-see-turmoil-2019-03-26)
Investors have been rattled by the inversion of the yield
curve--an unusual condition in which rates for shorter-dated
government debt rises above its longer-dated counterparts. The
inversion between the 3-month Treasury and the 10-year note
inverted for the first time since 2007 on Friday
(http://www.marketwatch.com/story/yield-curve-recession-indicator-flashes-red-as-10-year-yield-falls-below-3-month-yield-2019-03-22).
However, the 10-year Treasury yield, after closing at its lowest
level since 2017 on Monday, edged somewhat higher at 2.45% early
Tuesday.
Which data are in focus
Reports on housing starts and building permits for February are
expected at 8:30 a.m. Eastern Time, while the Case-Shiller home
price index for January is due at 9 a.m., followed by a reading on
consumer confidence at 10 a.m.
Which stocks are in focus?
Apple Inc.'s shares (AAPL) may be in focus after the tech giant
unveiled on Monday a raft of products aimed at boosting its
services business. Shares rose 1.1% in premarket trade.
Privately held Uber completed a $3.1 billion purchase
(http://www.marketwatch.com/story/uber-announces-31-billion-deal-for-mideast-rival-careem-2019-03-26)
of Middle Eastern rival Careem Networks.
Shares of McCormick & Co. Inc. (MKC) rose 3.4% in premarket
trade, after the spices and seasonings company reported fiscal
fourth quarter earnings
(http://www.marketwatch.com/story/mccormick-beats-profit-expectations-but-sales-come-up-a-bit-shy-2019-03-26)
that beat Wall Street expectations, though revenue fell short of
forecasts.
Bed Bath & Beyond Inc. (BBBY) stock is in focus Tuesday
morning, after The Wall Street Journal reported
(http://www.marketwatch.com/story/bed-bath-beyonds-ceo-board-targeted-by-activist-investors-2019-03-25)
that three activist investors are preparing to launch a proxy fight
to replace the home furnishings retailer's entire board. Shares are
up 19% before the bell.
What are strategists saying?
"The assumption is that the Fed is through tightening and the
next move is likely to be a cut -- Fed funds futures are now fully
pricing in a 25 [basis points] cut by the end of January 2020.
Perhaps as a result, US stocks close little changed and Asian
stocks are mostly higher this morning -- Tokyo stocks are up 2.6%
at the time of writing. So a little mean reversion as yesterday's
losers are now today's winners," wrote Marshall Gittler, chief
strategist at ACLS Global, in a Tuesday research note.
What were other markets doing?
European equity markets were higher, Stoxx 600 Europe index rose
0.5%. China stock markets closed lower, with Japan's Nikkei , Hong
Kong's Hang Seng Index advancing 2.2%.
Read:The persistence of subzero rates in Europe may revive a
perilous 'quest for yield'
(http://www.marketwatch.com/story/the-persistence-of-subzero-rates-in-europe-may-revive-a-perilous-quest-for-yield-2019-03-23)
In commodities markets, crude-oil prices climbed, while gold
prices declined, as the U.S. dollar remained under pressure
(http://www.marketwatch.com/story/dollar-edges-lower-as-currencies-retrace-fridays-moves-2019-03-25).
(END) Dow Jones Newswires
March 26, 2019 08:03 ET (12:03 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.