MARKET SNAPSHOT: U.S. Stock Market Set To Test Records As Wall Street Braces For Earnings Deluge
July 17 2017 - 7:23AM
Dow Jones News
By Barbara Kollmeyer, MarketWatch
BlackRock reports, Netflix earnings ahead for Monday
U.S. stocks were set to trade in record territory on Monday as
investors readied for a busy week of earnings and a report on
manufacturing.
Dow Jones Industrial Average futures were up 15 points, or less
than 0.1%, at 21,611, while S&P 500 futures inched up 1.90
point, or 0.1%, to 2,458.25. Nasdaq-100 futures rose 10.25 points,
or 0.2%, to 5,853.50.
Need to know:Investors should pay attention to this 'chart of
the week, month and potentially year'
(http://www.marketwatch.com/story/investors-should-pay-attention-to-the-chart-of-the-week-month-and-potentially-year-2017-07-17)
On Friday
(http://www.marketwatch.com/story/dow-industrials-set-to-hover-at-record-as-jp-morgan-citi-set-to-report-2017-07-14),
U.S. stocks scored fresh records, with the Dow closing up 0.4%,
while the S&P gained 0.5% and nabbed its first record close
since June 19. The Nasdaq Composite Index closed just shy of a
record, as it rose 0.6% gain.
Whether stocks can extend further into record territory hinges
partly on how a big week of earnings pans out. Some 68 S&P 500
companies will report this week, according to FactSet. Those
include Bank of America Corp.(BAC), Goldman Sachs Group Inc.(GS),
Microsoft Corp.(MSFT) and General Electric Co.(GE).
Read:Stock market poised to ride stellar earnings to new heights
(http://www.marketwatch.com/story/stock-market-poised-to-ride-stellar-earnings-to-new-heights-2017-07-15)
What will give stocks a push higher: While earnings are
important, tax legislation remains the most important political
issue for U.S. stocks, said Michael J. Wilson, equity strategist at
Morgan Stanley, in a note to clients on Monday.
He said equity multiples must expand again for the S&P 500
to reach their 2017 target of 2,700, but the catalyst on that
expansion would likely be "more policy 'certainty' rather than the
outcome itself.
"No matter what gets passed in the next few months, we think
just moving forward with a decision on the Affordable Care Act and
taxes will provide the certainty necessary for companies and
individuals to "act" on their higher confidence readings which have
remained elevated," said Wilson.
On the data front on Monday, the New York Federal Reserve's
Empire State Manufacturing Survey for July will be released at 8:30
a.m. Eastern Time.
Stocks to watch: Investment manager BlackRock Inc.(BLK) slipped
0.8% ahead of the open after reporting a profit and sales miss
(http://www.marketwatch.com/story/blackrocks-stock-set-to-slip-after-profit-sales-miss-2017-07-17).
Streaming giant Netflix Inc.(NFLX) is due after the close. Read a
Netflix preview here
(http://www.marketwatch.com/story/netflix-earnings-subscriber-additions-is-key-along-with-content-spend-2017-07-12).
Shares of J.B. Hunt Transport Services Inc.(JBHT) slipped 2%
after posting a profit that was below expectations
(http://www.marketwatch.com/story/jb-hunts-stock-drops-after-profit-falls-below-expectations-2017-07-17).
Read:Four key sectors to watch closely this earnings season
(http://www.marketwatch.com/story/four-key-sectors-to-watch-closely-this-earnings-season-2017-07-13)
Other markets: In China, the Shanghai Composite Index closed
down 1.4%
(http://www.marketwatch.com/story/china-stocks-sink-after-central-banks-liquidity-injection-2017-07-16),
but off earlier lows as data showed expansion in the world's
second-biggest economy beat forecasts with 6.9% second-quarter
growth
(http://www.marketwatch.com/story/chinas-economy-beats-outlook-grows-69-in-q2-2017-07-16).
Helping to spark the selling, Chinese officials at a financial
conference hinted at tighter controls on the economy.
Opinion:China is playing a weak hand with the U.S
(http://www.marketwatch.com/story/china-is-playing-a-weak-hand-with-the-us-2017-07-17).
European stocks traded mixed, with the FTSE 100 index gaining,
but Germany's DAX 30 falling.
Oil prices
(http://www.marketwatch.com/story/crude-prices-start-the-week-on-an-upbeat-note-2017-07-17)
and gold futures were slightly higher. The dollar was slightly
lower. Meanwhile, the benchmark 10-year Treasury note yield was at
2.31%
(END) Dow Jones Newswires
July 17, 2017 08:08 ET (12:08 GMT)
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