Stock-index futures pointed to a soft start for Wall Street Tuesday as investors look ahead to central-bank policy meetings and gauge developments on the U.S.-China trade front.
Apple Inc. was expected to be in the spotlight ahead of its annual launch of new model iPhones later in the day.
How are the major benchmarks faring?
Futures on the Dow Jones Industrial Average YMU19, -0.07% were down 19 points, or 0.1%, at 26,796, while S&P 500 futures ESU19, -0.17% lost 4 points, or 0.2%, to 2,973.5. Nasdaq-100 futures NQU19, -0.29% lost 22 points, or 0.3%, to 7,809.
Stocks ended mostly lower in lackluster trade Monday, with the S&P 500 SPX, -0.01% giving up just 0.28 point to end at 2,978.43, ending a three-day win streak. The Dow DJIA, +0.14%, however, ended with a gain of 38.05 points, or 0.1%, at 26,835.51, to extend its winning streak to four session. The Nasdaq Composite COMP, -0.19% gave up 15.64 points, or 0.2%, to close at 8,087.44.
Stocks have been in rebound mode in September, however, after suffering their second losing month of 2019 in August. The S&P 500 is up 1.8% so far this month, while the Dow has gained 1.6% and he Nasdaq is up 1.6%. Major indexes sit not far below record territory last seen in July, with the S&P 500 and Dow ending Tuesday less than 2% below their all-time closing highs.
Concerns about the U.S.-China trade battle appear to have moved to the back burner for investors after being blamed for volatile market action in August. U.S. Treasury Secretary Steven Mnuchin on Monday told Fox Business that he views renewed discussions with Beijing as a sign of good faith.
“The U.S. and China are due to meet next month, and according to Steven Mnuchin…the U.S. is prepared to do a deal, as long as it is good for the U.S.,” said David Madden, market analyst at CMC Markets UK, in a note. “The lack of hostilities between the U.S. and China is likely to keep stocks in their upward move.”
The European Central Bank is expected to deliver additional monetary stimulus when its policy makers meet Thursday, though some officials have appeared to push back against expectations for an aggressive package of measures combining further interest-rate cuts with a new bond-buying program.
Read: The ECB’s challenge: Pushing rates further into negative territory without wrecking eurozone banks
The U.S. National Federation of Independent Business on Tuesday said its small-business optimism index fell 1.6 points to a seasonally adjusted 103.1 in August, its worst showing since March.
Data on U.S. July job openings is due at 10 a.m. Eastern and will be watched for clues to the health of the labor market.
Which stocks are in focus?
Investors will be watching shares of Apple AAPL, +0.43% as it holds an annual fall event to roll out new devices and offer more information about other elements of its business, including its fast-growing services segment. Apple is expected to introduce three upgraded iPhone models, as well as new price points, and launch timing for new gaming and video subscriptions it showed off in a spring event.
See: Apple iPhone launch event — 5 things to watch for
Shares of Ford Motor Co. F, +2.14% were down 3.8% in premarket action. Credit rating agency Moody’s Investors Service late Monday downgraded the auto maker’s debt rating to Ba1, the first rung of “junk,” or non-investment speculative grade, from Baa3, citing “considerable operating and market challenges” and predicted “weak earnings and cash generation likely as the company pursues a lengthy and costly restructuring plan.” S&P Global Ratings and Fitch Ratings have a BBB rating on Ford, which is two steps above junk, though have a negative outlook. As long as the company has two ratings above junk, it is eligible to stay in the biggest investment-grade bond indexes.
Shares of HD Supply Holdings Inc. HDS, +1.32% were down 6.4% in premarket action after the industrial distribution company reported a fiscal second-quarter profit that topped expectations but sales that missed, while also providing a downbeat outlook for the current quarter.
How are other markets trading?
The yield on the 10-year U.S. Treasury note TMUBMUSD10Y, +0.16% rose to 1.64%.
Stocks traded mixed in Asia overnight, with the China CSI 300 000300, -0.34% falling 0.3%, Hong Kong’s Hang Seng index HSI, +0.01% nearly unchanged and Japan’s Nikkei 225 NIK, +0.35% rising 0.4%. In Europe, stocks were mostly lower, with the Stoxx Europe SXXP, -0.21% retreating 0.2%
In commodities markets, the price of crude oil CLV19, +0.83% was up 1% to about $58 a barrel and the price of gold GCZ19, -0.81% fell 0.7% to $1501 an ounce. The U.S. dollar DXY, +0.15% , meanwhile, edged higher against a basket of its peers.
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