U.S. stocks are set to open sharply lower on Friday as a nuclear missile test from North Korea lures risk-adverse investors into Treasury securities and gold. Additionally, hawkish comments from Boston Federal Reserve president Eric Rosengren (voting, dove) calling for higher rates to prevent the economy from overheating has exacerbated the negative tone in equity assets, driving Dow futures more than 100 points below fair value. Selling pressure permeated from European markets where Euro-zone indices are all in the red as a result of a drop in the German trade surplus.
Led by a 2.6% drop in exports, Germany’s surplus shrunk by nearly 10%, raising concerns about the health of Europe’s largest economy. Other regional markets fell in sympathy with the Euro Stoxx down 0.64%. The only economic data for Friday is July wholesale inventories, expected to increase by just 0.1%, and the Baker Hughes (BHI) rig count at 1:00pm ET. Wall Street will also be bracing for remarks from Dallas Fed President Rob Kaplan, Fed Governors Daniel Tarullo and Lael Brainard. -Dow Jones Industrial down 0.52% -S&P 500 futures down 0.50% -Nasdaq 100 futures down 0.53% SENTIMENT Nikkei up 0.04% Hang Seng up 0.75% Shanghai Composite down 0.55% FTSE-100 down 0.68% DAX-30 down 0.67%% PRE-MARKET SECTOR WATCH (-) Large cap tech: Lower (+/-) Chip stocks: Flat (-) Software stocks: Lower (-) Hardware stocks: Lower (-) Internet stocks: Lower (-) Oil stocks: Lower (-) Biotech stocks: Lower (-) Drug stocks: Lower (-) Financial stocks: Lower (-) Retail stocks: Lower (-) Industrial stocks: Lower (-) Airlines: Lower (-) Autos: Lower UPSIDE MOVERS: (+) LXRX (+18.22%) Reported successful phase 3 trial of oral anti-diabetic for Type 1 diabetes (+) FNSR (+15.11%) Beat Q1 estimates, issued strong FQ2 guidance (+) RH (+11.62%) Reported better-than-expected Q2 results, reaffirmed FY17 guidance DOWNSIDE MOVERS: (-) LNTH (-18.60%) Announced 5.2 million share offering (-) NEP (-6.06%) Announced offering of 10.4 million common units (-) SUI (-1.86%) Priced 3.25 million share offering
The index decreased 1.41% or $258.32 on September 13, hitting $18066.75. Dow Jones Industrial Average (INDEXDJX:.DJI) has risen 6.00% since August 15, 2016 and is uptrending. It has underperformed by 10.49% the S&P500.
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