Wall Street To Bounce Back

Wall Street To Bounce Back

All eyes are on U.S. GDP data and Fed’s Beige Book to be released Wednesday. Analysts project that GDP will be slower that the prior quarter.

Early signs from U.S. Futures Index are pointing to a moderately higher opening on Wall Street.

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

As of 8.00 am ET, the Dow futures were adding 141 points, the S&P 500 futures were progressing 12.75 points and the Nasdaq 100 futures were up 23.50 points.

U.S. stocks closed lower on Tuesday. The Dow plunged 391.64 points or 1.6 percent to 24,361.45, the Nasdaq fell 37.26 points or 0.5 percent to 7,396.59 and the S&P 500 tumbled 31.47 points or 1.2 percent to 2,689.86.
On the economic front, Beige Book that is produced roughly two weeks before the monetary policy meetings of the Federal Open Market Committee, will be published at 2.00 pm

GDP for the first quarter will be released at 8.30 am ET. The market analysts are looking for consensus of 2.2 percent, down from 2.3 percent in the prior quarter.

ADP Employment report for May will be published at 8.15 am ET. The consensus is for 187,000, down from 204,000 last month.

Redbook data for the week is expected at 8.55 am ET. The stores sales in the prior week was 3.2 percent.

In Washington, Fed governors will be holding an open meeting for elicit public comment on modifying Volcker rule.

The Agriculture Department’s Farm Prices for April will be published at 3.00 pm ET. The prior month’s Farm Prices were up 4.5 percent.

In the corporate sector, Movado Group, Inc. raised its financial outlook for fiscal 2019 and its board of directors declared a quarterly dividend. The company now expects full-year 2019 earnings in a range of $2.35 to $2.40 per share on net sales between $615.0 million and $625.0 million.

Asian stocks finished in the red. Chinese shares ended lower following reports that the Trump administration is considering imposing a hefty 25 percent tariff on $50 billion worth of Chinese goods even as a U.S. delegation is set to travel to Beijing for talks to resolve the dispute.

The benchmark Shanghai Composite index dropped 79.02 points or 2.53 percent to finish at 3,041.44 while Hong Kong’s Hang Seng index ended down 416.14 points or 1.37 percent at 30,068.44.

Japanese shares fell sharply. The Nikkei average slumped 339.91 points or 1.52 percent to 22,018.52, while the broader Topix index closed down 1.46 percent at 1,736.13.

Australian shares fell notably amid broad-based selling as investors rushed to safe-haven assets such as U.S. Treasuries. The S&P/ASX 200 index dropped 28.90 points or 0.48 percent to 5,984.70 while the broader All Ordinaries index ended down 27.90 points or 0.46 percent at 6,093.80.

European shares are trading broadly lower. The CAC 40 of France is down 26.25 points or 0.46 percent. DAX of Germany is climbing 74.69 points or 0.58 percent. FTSE 100 of England is gaining 4.23 points or 0. 05 percent. Swiss Market Index is slipping 16.50 points or 0.19 percent.

Euro Stoxx 50, that provides a Blue-chip representation of supersector leaders in the Eurozone, is trading down 0.14 percent.

by RTTNews Staff Writer

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