Breaking News

U.S. stock futures lower with Irma, North Korea, Fedspeak in focus

Stock MarketsSep 08, 2017 07:01AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Wall Street futures pointed to a lower open with caution over Irma and North Korea

Investing.com – Wall Street futures pointed to a lower open on Friday as investors prepared to digest remarks from Federal Reserve officials and remained wary of the arrival of Hurricane Irma stateside along with expectations for another missile launch from North Korea.

The blue-chip Dow futures fell 88 points, or 0.40%, at 6:56AM ET (10:56GMT), the S&P 500 futures lost 10 points, or 0.39%, while the tech-heavy Nasdaq 100 futures traded down 20 points, or 0.33%.

With no major economic reports on docket, remarks from Fed officials after prior session’s close would be priced into equities on Friday.

New York Fed president William Dudley called on the U.S. central bank to continue gradually raising interest rates, as low inflation should rebound.

Meanwhile, Kansas City Fed president Esther George didn’t back down from her hawkish stance, saying that it was time for rate hikes to continue and confirmed that the U.S. central bank had begun to discuss “very explicitly” how to begin the unwinding of the balance sheet.

Also speaking late Thursday, Cleveland Fed chief Loretta Mester reaffirmed her belief that further removal of accommodation via gradual increases in the fed funds rate will be needed.

Despite these generally hawkish comments, markets continued to show their skepticism, putting odds of just 32% on the possibility that the Fed will hike rates in December, according to Investing.com’s Fed Rate Monitor Tool.

Still ahead, Philadelphia Fed Patrick Harker will make remarks at the "New Perspectives on Consumer Behavior in Credit and Payments Markets" Conference at 8:45AM ET (12:45GMT) Friday.

The dollar hit a 32-month low on Friday as concerns over the economic impact of Hurricanes Harvey and Irma along with ongoing tension over North Korea weigh on the currency.

Traders are concerned that the impact from Hurricane Harvey is causing data distortions and these data skews may cause the Federal Reserve to sit on their hands for the rest of 2017.

In addition, Hurricane Irma will undoubtedly add to the turmoil. The historic storm, one the strongest in the last 100 years, claimed at least 14 lives as it hurtled through the Caribbean islands, while hundreds line up for water and fuel in Florida, ahead of landfall this weekend.

Though the National Hurricane Center downgraded the storm to category 4 from category 5 it continues to describe Irma as “extremely dangerous”.

Investors in stocks were also cautious over speculation that North Korea's next display of defiance could come in the form of yet another missile launch as early this Saturday, to coincide with the country's founding day.

In company news, Equifax Inc (NYSE:EFX), a provider of consumer credit scores, said on Thursday that personal details of as many as 143 million U.S. consumers were accessed by hackers between mid-May and July, in what could be one of the largest data breaches in the U.S. Shares tumbled 16% in pre-market trade Friday.

Meanwhile, oil prices were mixed on Friday, with U.S. crude futures sliding lower and Brent prices moving higher after data on Thursday showed a rise in U.S. stockpiles last week and as markets prepared for potential supply disruptions caused by Hurricane Irma.

West Texas Intermediate oil was still on track for weekly gains of more than 3%, while the London barrel saw some support Friday from news that Saudi Arabia will cut crude oil allocations to its customers worldwide in October by 350,000 barrels per day.

U.S. crude futures traded down 0.29% to $48.95 by 6:57AM ET (10:57GMT), while Brent oil gained 0.50% to $54.76.

Investors also looked ahead to the latest gauge on U.S. shale production.

Baker Hughes will release its most recent weekly rig count data later on Friday.

Elsewhere, European bourses showed mixed trade as global caution and a stronger euro put the brakes on risk sentiment in the region. At 6:58AM ET (10:58GMT), the European benchmark Euro Stoxx 50 dropped 0.15%, Germany’s DAX inched up 0.03%, while London's FTSE 100 fell 0.48%.

Earlier, Asian shares also closed mostly lower as a weak reading on Chinese exports dampened sentiment.

U.S. stock futures lower with Irma, North Korea, Fedspeak in focus

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. 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 Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
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.
Sep 08, 2017 2:02PM GMT
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thursday's precious metals and currencies sell and buy call again open today.........and wait below tgts today/next week.mm..SELL---XAU---$1357.50 RANGE TO $1332 AND $1325 RANGE..SELL---XAG---$18.210 RANGE TO $17.750 AND $17.600 RANGE..SELL---EU---$1.2090 RANGE TO $1.1910 AND $1.1860 RANGE..BUY---DX---$91 RANGE TO $92.70 AND $93.30 RANGE..BUY---UJ---$107.40 RANGE TO $109.50 AND $110.70
0 0
Egami Trader
Egami Trader Sep 08, 2017 1:10PM GMT
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I'd say go to the beach... unless you're in Florida. Best wishes out to those affected. Stay safe!..Looks like only noise today is the tumbleweed rolling through the stock exchange...Harker gonna wrap up all Fed talk til Sep 20 with blackout starting tomorrow...Maybe take some protection in case North Korea goes ballistic over the weekend and especially in case Donnie gets red in the face. ..Just remember that geopolitics is all BTFD.
0 0
Agwunobi Henry
Agwunobi Henry Sep 08, 2017 11:42AM GMT
Saved. See Saved Items.
This comment has already been saved in your Saved Items
0 0
Dharmesh Prajapati
Dharmesh Prajapati Sep 08, 2017 1:18PM GMT
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Stay away from water
1 0
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
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