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U.S. Stock Futures Point to Modest Gains in Subdued Trade

Published 09/09/2019, 06:52 AM
Updated 09/09/2019, 07:20 AM
© Reuters.

Investing.com - U.S. stock futures pointed to a modestly higher open on Wall Street on Monday in the wake of a disappointing U.S. jobs report on Friday as investors weighed expectations for a new wave of stimulus from world central banks to shore up slowing growth.

By 06:55 AM ET, Dow futures were up 52 points or 0.2%, while the S&P 500 futures contract was up 7 points or 0.3% and Nasdaq 100 futures were up 17 points or 0.2%.

On Friday, U.S. jobs growth slowed more than expected in August, while data over the weekend from China showed the country's exports unexpectedly shrank in August as shipments to the U.S. slowed.

The two countries have been locked in a trade dispute since early 2018, and investors fear escalating tariffs between them -- already curtailing growth -- might tip the global economy into recession as early as next year.

"If all the currently proposed tariffs are implemented, we foresee that growth in the first half of next year will slow toward the brink of a recession," said Mark Haefele, chief investment officer at UBS Global Wealth Management.

Apple (NASDAQ:AAPL) and manufacturing partner Foxconn Technology (TW:2354) on Monday rebutted allegations of lapses in people management leveled by a non-profit monitor of worker rights, though confirmed they employed too many temporary workers.

Apple (NASDAQ:AAPL) relies heavily on Taiwan's Foxconn and its Chinese manufacturing facilities to produce devices such as the iPhone, the next line of which will be unveiled on Tuesday.

Tobacco stocks were also likely to be in focus after the Center for Disease Control and Prevention warned late on Friday that vaping products may be responsible for a wave of sudden and acute health problems.

There was also more buzz around the upcoming IPO of The We Company, the parent company of office rental group WeWork. A report by Dow Jones suggested that the company may cut its valuation to less than $20 billion at the IPO, even less than reported at the end of last week. The deal shines a harsh light on the 'unicorns' that have lined up to list this year, many of whom still don't have a clear path to profitability.

Outside of equities, the U.S. dollar index, which measures the greenback against six rival currencies, edged down to 98.28, while the yield on the 10-year Treasury was last trading at 1.59%.

In commodities, gold futures were down $2.35, or 0.1%, at $1,517.75 a troy ounce, while crude oil traded up 28 cents, or 0.5%, to $56.79 a barrel.

--Reuters contributed to this report

Latest comments

Alex, we've been expecting you. Please remember to invest in operations that pay dividends. Buy some bonds that promote beneficial projects. Put a little away while earning modest interest. Purchase real estate that you intend to use. Buy a couple bars of gold and watch it retain its value regardless of inflation.r. r. Plan your estate to benefit your family and country. Just fooling, follow blindly the sheep who swing markets wide beyond reason and construct busy ways to lose money for the largest audience. Follow our president and become a serial money launderer. Follow his administration's graft- and join in if you can buy your way in. Treat those in lesser circumstances as flotsam. Shirk responsibility to those who trust you. You will do well here if you are ready to sharpen your game and deny reality. Welcome to the American dream.
We have been in the longest economic expansion in recorded history while inflation has been fairly low, currency devaluations (especially the yuan) and so called MMT (quite scary they even put a name to this insanity) has also helped drive costs lower and certainly offset tariffs. Yet all you experts and ****ysts keep blaming tariffs for a coming slowdown. How about calling it by what it really is...sky high liabilities that most countries will never be able to honor, insane QE and constant money printing, manipulation of stocks gold and bonds (which offer already negative yields in many placesl) and the fact that the same few mammals pocket most of what's printed...how about laying it all out instead of trying to pull the blinds over our eyes?
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