MARKET SNAPSHOT: U.S. Stocks Set To Edge Up, As Health-care Vote, Yellen Take Center Stage
March 23 2017 - 7:42AM
Dow Jones News
By Barbara Kollmeyer, MarketWatch , Ryan Vlastelica
Dow looking to snap five-day losing streak
U.S. stock-index futures were slightly higher on Thursday,
though trading was cautious as investors looked ahead to speeches
from key Federal Reserve members, including Chairwoman Janet
Yellen, as well as an important vote on a health-care bill that
could provide clarity on President Donald Trump's ability to pass
his ambitious legislative agenda.
Dow Jones Industrial Average index futures rose 14 points, or
less than 0.1%, to 20,609, while S&P 500 index futures added
4.5 points, or 0.2%, to 2,347. Nasdaq-100 futures added 7 points,
or 0.1%, to 5,373.
Lately, the trend for equities has been lower. The Dow Jones
Industrial Average has fallen for five straight days, its longest
losing streak since January, although most of the declines were
0.1% or smaller. However, all three major indexes fell more than 1%
on Tuesday, breaking a multimonth streak without a drop of that
magnitude.
Opinion:Your best defensive bet is...tech stocks?
(http://www.marketwatch.com/story/your-best-defensive-bet-is-tech-stocks-2017-03-23)
Plus:These key levels may signal if the stock market is set to
rise or fall
(http://www.marketwatch.com/story/the-key-levels-stock-market-technical-analysts-are-watching-as-trump-trade-wobbles-2017-03-22)
Tuesday's selloff was partly driven by concerns of slowing
momentum for Trump's pro-growth agenda. Therefore, investors will
be closely watching Thursday's House vote on the Trump-backed GOP
plan to replace the Affordable Care Act.
Trump has been involved in intense negotiations to push the bill
through, and analysts said there is a danger of an equity selloff
if he can't achieve that, as it may signal a struggle for him to
push through on other plans, such as tax reform and an
infrastructure spending package.
See also:Infrastructure ETFs stall as Trump plan moves to back
burner
(http://www.marketwatch.com/story/infrastructure-etfs-stall-as-trump-plan-moves-to-back-burner-2017-03-20)
David Lafferty, chief market strategist at Natixis Global Asset
Management, said he expects more selloffs similar to Tuesday's as
investors wake up to the likelihood that gridlock between the
Republican party is "nearly as bad as it is between Democrats and
Republicans."
"The underlying impetus to stocks remains upward, but with
stretched valuations and too much optimism priced in, we expect
stocks to lurch forward and back in a return to higher volatility
levels," said Lafferty, in a note to clients.
Read:Dennis Gartman sees at least a 5% drop for stocks--and
shades of Watergate
(http://www.marketwatch.com/story/dennis-gartman-sees-at-least-a-5-drop-for-stocks-and-shades-of-watergate-2017-03-22)
Ahead of the health-care vote, the Fed's Yellen is scheduled to
give opening remarks at a conference in Washington, D.C. at 8:45
a.m. Eastern. Minneapolis Fed President Neel Kashkari will speak on
U.S. education policy at a separate conference in D.C. at 12:30
p.m. Eastern.
At 7 p.m., Dallas Fed President Rob Kaplan will speak on the
economy and monetary policy in Chicago.
Stocks to watch:Apple Inc.(AAPL) may be in focus after a report
that it has acquired Workflow, a popular mobile app for automating
tasks, TechCrunch reported Wednesday
(http://www.marketwatch.com/story/apple-acquires-automation-app-workflow-report-2017-03-22).
Opinion:Your best defensive bet is...tech stocks?
(http://www.marketwatch.com/story/your-best-defensive-bet-is-tech-stocks-2017-03-23)
(http://www.marketwatch.com/story/your-best-defensive-bet-is-tech-stocks-2017-03-23)Five
Below Inc.(FIVE) shares rose 8% in thin premarket trade after the
retailer reported forecast-beating earnings
(http://www.marketwatch.com/story/five-below-shares-rally-on-companys-earnings-beat-new-store-openings-2017-03-22)
and said it would open 100 new stores in 2017.
Elliot Management Corp. has surfaced as a key player in a $24
billion standoff
(http://www.marketwatch.com/story/elliott-pressures-akzo-over-ppg-takeover-bid-2017-03-22)
between Akzo Nobel NV and PPG Industries Inc.(PPG). Elliot on
Wednesday threatened to use corporate rules to call a special
shareholders meeting try to try to force Akzo to at least talk with
PPG.
Shares of Microsoft Corp.(MSFT) may be in focus after news that
it has agreed to license several patents
(http://www.marketwatch.com/story/microsoft-toyota-sign-patent-deal-potentially-for-connected-cars-2017-03-22)
to Toyota Motor Corp.(7203.TO).
Other markets: Asian stocks had a largely quiet session
(http://www.marketwatch.com/story/asian-markets-hold-their-breath-ahead-of-critical-vote-in-us-2017-03-22),
while European stocks hovered at week lows, with investors
reluctant to make big moves ahead of the U.S. health care vote.
Oil prices
(http://www.marketwatch.com/story/oil-prices-lifted-by-drop-in-us-gasoline-stocks-2017-03-23)
firmed up, while gold slipped. The dollar edged up broadly, though
it was weaker against the pound, which rallied after U.K. retail
sales surged in February
(http://www.marketwatch.com/story/uk-retail-sales-surge-14-in-february-2017-03-23).
(END) Dow Jones Newswires
March 23, 2017 08:27 ET (12:27 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.