Despite Geo-Political Worries, Wall Street Might Bounce Back

Despite Geo-Political Worries, Wall Street Might Bounce Back

Early signs from the U.S. Futures Index suggest that Wall Street might come back from a lower close on Friday.

The geo-political situation would have an impact on investors’ sentiments. After the strikes in Syria, U.S. is planning for new sanctions against Russia. The price movement of energy as well as other commodities are closely watched by investors.

Retail sales report for March and Business Inventories report are the major economic announcement for the day. Earnings season will be in full steam from this week.

Asian shares finished mostly lower, while European shares are trading in the red.

As of 7 am ET, the Dow futures were climbing 145.00 points, the S&P 500 futures were adding 16.00 points and the Nasdaq 100 futures were gaining 39.75 points.

U.S. stocks closed in the red on Friday. The Dow slid 122.91 points or 0.5 percent to 24,360.14, the Nasdaq dropped 33.60 points or 0.5 percent to 7,106.65 and the S&P 500 fell 7.69 points or 0.3 percent to 2,656.30.

On the economic front, the U.S. Commerce Department’s Retail Sales report for March will be published at 8.30 am ET. The market analysts are looking for consensus of 0.4 percent increase compared to a decline of 0.1 percent in the prior month. Retails sales less autos is expected to be stable at 0.2 percent.

Empire State Manufacturing Survey for April is expected at 8.30 am ET. The consensus is for 18.2, down from 22.5 in the prior month.

The Commerce Departments Business Inventories for February will be revealed at 10.00 am ET. The consensus is for 0.6 percent in line with January.

National Association of Home Builders/Wells Fargo’s Housing Market Index for April will be published at 10.00 am. The consensus of Housing Market Index is 70, unchanged from the prior month.

Atlanta Federal Reserve Bank President Raphael Bostic will speak at the Shoals Chamber of Commerce in Florence, Alabama, with audience Q&A at 1.15 pm ET.

Treasury International Capital data for Feb will be issued at 4.00 pm ET. The prior month’s Forign Demand for Long-Term U.S. Securities was $62.1 billion.

In the corporate sector, Bank of America reported 30 percent increase in first quarter net income to $6.9 billion from $5.3 billion a year ago. On a per share basis, earnings were 0.62, up 38 percent from the prior year from $0.45 in the prior year.

Revenue, net of interest expense, for the quarter climbed 4 percent to $23.1 billion from $22.2 bilion last year.

Asian stocks ended mixed on Monday. Chinese shares hit a fresh six-month low. The benchmark Shanghai Composite index tumbled 48.40 points or 1.53 percent to post its worst loss in three weeks while Hong Kong’s Hang Seng index fell down 492.79 points or 1.60 percent at 30,315.59.

Japanese shares finished modestly higher. The Nikkei average rose 56.79 points or 0.26 percent to 21,835.53 while the broader Topix index closed 0.40 percent higher at 1,736.22.

Australian shares rose as investors took Syria tensions in their stride. The benchmark S&P/ASX 200 index gained 12.20 points or 0.21 percent to finish at 5,841.30 while the broader All Ordinaries index ended up 8.30 points or 0.14 percent at 5,933.

European shares are trading mostly lower. The CAC 40 Index of France are down 4.87 points or 0.11 percent, the German DAX is losing 3.63 points or 0.03 percent, the U.K. FTSE 100 Index is declining 25.01 points or 0.34 percent. The Swiss Market Index dropping 36.04 points or 0.41 percent.

The Euro Stoxx 50 Index, which is a compilation of 50 blue chip stocks across the euro area, is down 0.13 percent.

by RTTNews Staff Writer

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