Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Dow Futures 70 Pts Lower; Adobe in Spotlight

Stock MarketsJun 18, 2021 07:01AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Peter Nurse - U.S. stocks are seen opening mixed Friday, struggling to gain traction at the end of what looks like being a losing week following the Federal Reserve’s latest update.

At 7:05 AM ET (1205 GMT), the Dow Futures contract was down 70 points, or 0.2%, S&P 500 Futures traded 5 points, or 0.1%, lower, and Nasdaq 100 Futures climbed 20 points, or 0.1%.

The U.S. Federal Reserve indicating the likelihood of raising interest rate raises in 2023, a year earlier than expected, has hit large parts of the equity markets as investors begin to adjust to a reality without the very easy funding conditions that the central bank ensured as the pandemic hit economic activity.

On Thursday, the blue-chip Dow Jones Industrial Average dropped 0.6%, broad-based S&P 500 closed 0.1% lower, while the tech-heavy Nasdaq Composite outperformed, gaining 0.9%.

For the week to date, the Dow has fallen 1.9%, the S&P 500 has dropped 0.6%, while the Nasdaq has gained 0.7%.

This change in tone happened after investment flows into global equity funds jumped to the highest in three weeks in the week ended June 16, although it was European equities that received the most attention.

Global equity funds received a net $10.3 billion in the week ended June 16, compared with about $13 billion outflows in the previous week, data from Refinitiv Lipper showed. 

European equity funds led inflows, luring $8.6 billion, while U.S. equity funds and Asian equity funds had net purchases worth $0.4 billion and $1.2 billion, respectively.

There are no economic numbers of note due later and the earnings slate is largely empty. But it's a triple witching Friday, with options and futures on indexes and equities set to expire, which could lead to a volatile trading day.

In corporate news, Adobe (NASDAQ:ADBE) will be in the spotlight after the software giant easily beat second-quarter targets after the close Thursday, while retailer Kroger (NYSE:KR) raised its guidance for 2021. 

Crude oil prices weakened further Friday, continuing to slip in the wake of the stronger dollar on the back of the hawkish Fed tone, but remained near multi-year highs.

By 7:05 AM ET, U.S. crude was down 0.5% at $70.69 a barrel, while Brent was down 0.7% at $72.59.

The US Dollar Index, which tracks the greenback against a basket of six other currencies, hit a more than two-month high earlier Friday, and is on course for a weekly gain of 1.5%, its largest since September.

A stronger dollar makes oil priced in the U.S. currency more expensive in other currencies, potentially weighing on demand. That said, losses have been limited, and the two benchmark oil contracts remain near multi-year highs, still on course to end the week largely unchanged.  

On Wednesday, Brent settled at its highest price since April 2019 while WTI settled at its highest since October 2018.

Later Friday, traders will focus on the latest weekly update from Baker Hughes of the number of oil rigs, while the CFTC will release its weekly commitments of traders report. 


Dow Futures 70 Pts Lower; Adobe in Spotlight

Related Articles

Boeing, Pharma, McDonald's Earnings: 3 Things to Watch
Boeing, Pharma, McDonald's Earnings: 3 Things to Watch By - Jul 27, 2021

By Dhirendra Tripathi Stocks sold off on Tuesday ahead of earnings reports from tech giants and the Federal Reserve’s next policy announcement, due out Wednesday afternoon. The...

Will the Stock Market Bounce Back Last?
Will the Stock Market Bounce Back Last? By StockNews - Jul 27, 2021

Last Monday, the major benchmarks suffered their worst declines of the year. The rising case count for COVID-19, primarily driven by the highly contagious Delta variant, led to the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Mark Manley
Mark Manley Jun 18, 2021 8:30AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The fed says "hey, the economy looks really strong", so journos report that the world is ending and investors tank the markets? This is why mature adults can't stand liberals and journos. This is your reaction to everything.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email