Stock Futures Trim Early Gains as Oil’s Steep Losses Weighs (INDEXDJX:.DJI)


U.S. stock futures have returned most of their earlier gains and are struggling to stay positive as heavy losses in oil weighs on equities. West Texas Intermediate crude oil is now close to 3% lower after the Saudi Arabian Energy Minister Khalid al-Falih dimmed the possibility for a deal to trim production levels between Saudi Arabia, Russia and Iran.

As a result, early gains attributed to the outcome to Monday night’s presidential debate have nearly vanished leaving Dow futures just only 1 point above fair value. Wall Street is also bracing for Tuesday’s economic calendar that includes the July Case Shiller home price index, which missed expectations coming in flat compared with forecasts for +1%, the September preliminary PMI services sector index, September consumer confidence (expected 98.8) and the September Richmond Fed manufacturing index (expected -2.0 from -11.0 in August). Additionally, Fed Vice Chairman Stanley Fischer is giving a speech at Howard University later this morning. Fischer is generally considered hawkish in regard to monetary policy and could spook financial markets with the suggestion that a December rate hike is likely. -Dow Jones Industrial up 0.02% -S&P 500 futures up 0.06% -Nasdaq 100 futures up 0.09% SENTIMENT Nikkei up 0.84% Hang Seng up 1.09% Shanghai Composite up 0.59% FTSE-100 down 0.48% DAX-30 down 0.98% PRE-MARKET SECTOR WATCH (+) Large cap tech: Higher (+) Chip stocks: Higher (+) Software stocks: Higher (+) Hardware stocks: Higher (+) Internet stocks: Higher (-) Oil stocks: Lower (+/-) Biotech stocks: Mixed (+/-) Drug stocks: Mixed (+) Financial stocks: Higher (+) Retail stocks: Higher (+) Industrial stocks: Higher (+/-) Airlines: Flat (+) Autos: Higher UPSIDE MOVERS: (+) GI (+88.63%) Agreed to be acquired by Boston Scientific (BSX) for $8 per share (+) PIRS (+12.50%) Reported positive data for cancer immunotherapeutic drug candidate PRS-343 (+) KITE (+11.71%) Announced positive results for phase 1/2 clinical trial of KTC-C19 DOWNSIDE MOVERS: (-) SXL (-7.82%) Announced plans to acquire Vitol’s crude platform for approximately $760 million, and pricing a 21 million share offering at $27 per share (-) MIME (-7.28%) Announced secondary offering of 4 million common shares (-) NAT (-7.30%) Offering 11 million shares of common stock

The index increased 0.74% or $133.47 on September 27, hitting $18228.3. Dow Jones Industrial Average (INDEXDJX:.DJI) has risen 6.00% since August 29, 2016 and is uptrending. It has underperformed by 5.70% the S&P500.

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