U.S. markets were closed for normal trade on Monday for Independence Day, but stock futures still traded and logged small gains. Those moves came after both the Dow average DJIA, +0.11% and S&P 500 index SPX, +0.19% last week scored their best ...
U.S. stock futures fell on Tuesday, as investors returned from the long holiday weekend to more Brexit-fueled uncertainty and opted for caution ahead of the closely watched U.S. jobs report on Friday. Futures for the Dow Jones Industrial Average
dropped 78 points, or 0.4%, to 17,788, while those for the S&P 500 index
lost 10.05 points, or 0.5%, to 2,086.50. Futures for the Nasdaq-100 index
fell 21.25 points, or 0.5%, to 4,412. U.S. markets were closed for normal trade on Monday for Independence Day, but stock futures still traded and logged small gains. Those moves came after both the Dow average
and S&P 500 index
last week scored their best week in 2016, clawing back some of the steep losses logged in the wake of the U.K.’s vote to leave the European Union. Better-than-expected U.S. data and hopes that central banks will step up to calm markets were seen as helping boost stocks last week. “Stock markets have snapped a 5-day liquidity driven rally [on Tuesday] as investors began to look beyond expectations of more cheap money to the reason why central banks may be forced to ease further,” analysts at Rabobank said in a note. “Arguably it was inevitable that the reality of a bleaker economic outlook would begin to set in. It may now only be a matter of time before investors once again begin to wonder whether the central banks really have the ammunition to counter the headwinds that face the global economy,” they added. The Bank of England is expected to cut rates from an already record low of 0.5% when it meets next week. BOE Governor Mark Carney said during a Tuesday press conference after the bank’s Financial Stability Report came out that it is important any monetary policy action focuses on the domestic economy. Carney also said the risks in the aftermath of the vote have “begun to crystallize.” Minutes from the Federal Reserve’s June meeting — held ahead of the Brexit referendum — are out Wednesday at 2 p.m. Eastern Time. The renewed Brexit jitters on Tuesday sent waves through the currency market. The pound
dropped to a fresh 31-year low against the dollar at $1.3114, but trimmed losses to $1.3182 as Carney spoke. The yen
rallied against the dollar, with the greenback buying ¥101.75, compared with ¥102.55 on Monday. Economic news: Ahead of a busy data calendar later this week, the only major release Tuesday is factory orders for May, due at 10 a.m. Eastern. The forecast is for a fall of 0.8%, compared with a rise of 1.9% the previous month. The highlight of the week is the top-tier nonfarm payrolls report out on Friday. After a puny 38,000 jobs were added to the economy in May, economists polled by MarketWatch forecast 175,000 jobs were added in June. Read: Goldilocks jobs report for June would be ‘just right’ See also: MarketWatch’s economic calendar
Snapchat’s growing problem with grown-ups(2:21)Snapchat faces a dilemma. As more adults sign up for the social media messaging app, many teens and college-aged students have become frustrated that the platform is no longer cool.
Movers and shakers: Oil companies were among biggest premarket decliners, as crude
slumped more than 2%. Shares of Southwestern Energy Co.
dropped 2.4%, Transocean Ltd.
fell 2%, and Exxon Mobil Corp.
gave up 0.8%. In other oil news, Chevron Corp.
and Exxon on Tuesday committed to a $36.8 billion oil expansion project in Kazakhstan. Shares of McDonald’s Corp.
could also be active on Tuesday after the fast food chain won a legal case in the European Union about other companies using the prefix “Mac” or “Mc”. Other markets: Asian markets closed mostly lower, although stocks in Shanghai
rose as Chinese investors became more hopeful about President Xi Jinping’s calls for state-owned enterprise reform. European stocks
sold off again as Brexit fears gripped the market. Gold
rose 0.6% to almost $1,350 an ounce on safe haven demand.
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