CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Dow Jones futures: index set to fall on Monday

A blockbuster week of company results and economic stats will give investors a blow-by-blow account of the Covid-19 crisis on the US economy.

Dow set to open lower after 1.9% weekly loss

Dow Jones shares look set to open slightly weaker this week as investors gear up for a blockbuster earnings season, economic data dump and interest rate meeting that will give traders an insight in the pain experienced by American energy and manufacturing in particular.

In weekend trading with IG, the Dow Jones fell 37 points, or 0.2%, to be just above 23,715.00 points at 2248 GMT. That’s down on Friday’s close of 23,775.27 points, which was down 1.9% for the week. The Dow Jones Futures contact for June was changing hands at 23,639.00 points.

The Dow is coming off a week that was dominated by the energy sector. Buyers were essentially paying sellers to take oil off their hands as the WTI Intermediate index, the American benchmark, sank below US$0 for the first time. Storage tanks in Cushing, Oklahoma, the site of America’s most important oil reserves, began to run out of space.

Energy, manufacturing themes ahead for investors

Tuesday is when the action will start off with US consumer confidence data out, as well as quarterly results from Caterpillar, a manufacturer of major construction equipment. Caterpillar is seen by many as a bellwether for the construction industry and the world economy in general because its exposure to global industry.

Continuing the manufacturing theme will be 3M, a major multinational manufacturer. And then to round out Tuesday’s results will be Pfizer, where a number of defensive investors will have parked their money, hoping to capitalise on the Covid-19 response.

On Wednesday, the US Federal Reserve has an interest rate decision scheduled. While interest rates are at near-zero and America’s quantitative easing program in full swing, investors are likely to be looking for the central bank’s commentary and insight, rather than additional interventions.

More from manufacturing with General Electricand Boeing reporting quarterly results. Microsoft, an American software giant, will also hand down its quarterly numbers.

On Thursday, US initial jobless claims will give investors another snapshot of the damage to the US jobs market that Covid-19 unleashed.

In company results, attention will shift across the Atlantic to oil giant Royal Dutch Shell, which reports its quarterly earnings. And in China, manufacturing data is set to be released.

Finally, on Friday, manufacturing data will also appear in the US, along with manufacturing prices paid by buyers. The oil theme will also continue in the US with Exxon and Chevron reporting quarterly numbers.

Practise trading indices, currencies and equities with an IG demo account now

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

React to global volatility

Market volatility continues as coronavirus dominates the global agenda. Trade with us to take advantage of:

  • Tight spreads – from just 1 point on major indices, and 2.8 on US crude
  • Guaranteed stops – they’re free to use, and you’ll only pay a small fee if they’re triggered
  • Round-the-clock assistance – our highly-skilled team are on hand to support you

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.