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.
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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
React to global volatility
Market volatility continues as coronavirus concerns amplify. Trade with IG and 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 only incur a fee when triggered
- Round-the-clock assistance – our highly skilled team are available when you need support
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.