Stock-index futures edged lower Tuesday, signaling a soft start for Wall Street a day after all three major indexes scored another round of records in the wake of a so-called phase-one trade deal between the U.S. and China.
What are major indexes doing?
Futures on the Dow Jones Industrial Average YMH20, -0.09% fell 33 points, or 0.1%, to 28,230, while S&P 500 futures ESH20, -0.01% were off 1.4 points, or less than 0.1%, to 3,197. Nasdaq-100 futures NQH20, +0.03% were up 1.25 points at 8,607.75.
The Dow on Monday DJIA, +0.36% rallied 100.51 points, or 0.4%, to end at 28,235.89, and the S&P 500 SPX, +0.71% advanced 22.65 points, or 0.7%, to finish at 3,191.45. The Nasdaq Composite COMP, +0.91% finished at 8,814.23, a gain of 79.35 points, or 0.9%.
What’s driving the market?
The S&P 500 and Nasdaq logged their third straight record close Monday, while the Dow saw its first record finish since Nov. 27 as equities rose in quiet trade following the announcement late last week of a partial, or “phase-one,” U.S.-China trade deal. The Dow, however, did end well off Monday’s session highs, which some traders took as a sign equities could be due for some consolidation of recent gains.
Read: Why Wall Street sees the stock market on the verge of a ‘melt-up’
“Although last week’s positive ‘shocks’ will likely have bullish long-term effects the lofty gains of the past few days could lead to another slight pullback in stocks, which might already have started with today’s late-day dip,” Ken Berman, strategist at Gorilla Trades, in a note.
Some underlying support for stocks was also tied to last Thursday’s U.K. election, which saw the Conservative party led by Prime Minister Boris Johnson score a decisive victory, which soothed fears the country could leave the European Union without a trade deal in place. Those worries were revived Tuesday, however, after Johnson signaled he would rule out any extension of an end-of-2020 deadline for reaching agreement on an EU-U.K. trade deal.
See: Boris Johnson seeks to rule out Brexit delay beyond 2020
European equities were lower, with the U.K.’s FTSE 100 UKX, -0.13% off 1%.
On the economic front, investors will sift through data on November housing starts and building permits at 8:30 a.m. Eastern. Economists surveyed by MarketWatch look for starts to rise to a 1.356 million annual pace from 1.314 million in October, while permits are expected to decline to a 1.435 million pace from 1.461 million.
Data on November industrial production and capacity utilization is due at 9:15 a.m. Eastern, with economists penciling in a 1.2% rise in production after a 0.8% fall in October. Utilization is expected to rise to 77.5% from 76.7%. Data on October job openings is set for 10 a.m. Eastern.
What companies are in focus?
Shares of Dow component Boeing Co. BA, -4.29% were off 1.8% in premarket action after confirming late Monday it would suspend production of its 737 Max jetliner. Boeing shares slumped more than 4% on Monday, dragging on the blue-chip gauge, after The Wall Street Journal reported the company was considering such a move.
Shares of Eli Lilly & Co. LLY, +1.09% rose 0.9% in premarket action after the drugmaker provided an upbeat financial outlook for the year ahead.
Shares of Bed Bath & Beyond BBBY, -1.01% might also be in focus after the company said six senior executives, including its chief merchandising officer and chief marketing officer will depart ahead of the announcement of a new plan by Chief Executive Mark Tritton in early 2020. Shares were off 0.5% in premarket trade.
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