Wednesday January 23rd


Dow set to rise 200 points as United Tech, P&G jump on earnings

U.S. stock index futures pointed to a higher open on Wednesday after the release of strong corporate earnings from companies like United Technologies and Procter & Gamble. Around 8:05 a.m. ET, Dow Jones Industrial Average futures popped 190 points, indicating gain of 202.52 points at the open. Futures on the S&P 500 and Nasdaq 100 also pointed to solid gains. Dow members United Technologies and Procter & Gamble rose 3.4 percent and 4.2 percent in the premarket, respectively, after both companies reported better-than-expected earnings. IBM, another Dow component, also jumped 7.3 percent on the back of its results. The trading seen in futures comes after Wall Street closed its previous session lower. On Tuesday, the Dow snapped its four-day winning streak, closing down more than 300 points lower, as global growth fears added jitters to market sentiment. Earlier this week, the International Monetary Fund (IMF) announced that it had revised down its estimates for global growth, projecting a 3.5 percent growth rate across the globe in 2019, and 3.6 percent for next year. The fund had already slashed its forecasts back in October, due to trade tensions, however issues still remain as the institution keeps its eye on other topics filled with uncertainty, such as Brexit. Weak economic data out of China didn’t ease fears either. Meanwhile, investors continue to keep a close eye on trade negotiations with the Asian nation. In the latest surrounding trade discussions, the White House has appeared to have rejected a trade planning meeting with its Chinese counterparts this week, as outstanding disagreements over the enforcement of intellectual property rules rumble on — this according to a source familiar with the situation. When commenting on the news, the White House told CNBC Tuesday that “the teams remain in touch in preparation for high level talks with Vice Premier Liu He” at the end of January. Meantime, White House economic advisor Larry Kudlow refuted claims that an official meeting had been called off, adding that no intermediate gatherings had been scheduled other than the visit by Liu. Looking closer to home, investors will keep abreast of domestic politics as the ongoing government shutdown continues to trigger uncertainty across the U.S. Major stock markets in Asia ended mixed on Wednesday amid concerns over the state of ongoing U.S.-China trade negotiations, after reports emerged that the White House canceled a trade planning meeting with Beijing this week. The mainland Chinese markets, closely watched in relation to the trade war between Beijing and Washington, saw early gains but eventually lost steam. The Shanghai composite and Shenzhen component both saw slight gains to close at about 2,581.00 and 7,523.77, respectively. The Shenzhen composite rose 0.129 percent to finish its trading day at around 1,316.28. Hong Kong’s Hang Seng index saw fractional losses, as of its final hour of trade. Japan’s Nikkei 225 shed 0.14 percent to close at 20,593.72 while the Topix index declined 0.60 percent to end its trading day at 1,547.03. South Korea’s Kospi gained 0.47 percent to close at 2,127.78. Oil prices inched up on Wednesday after China and Japan said they would use fiscal spending to stem an economic slowdown that is weighing on global financial markets. International Brent crude oil futures were at $61.79 per barrel at 0743 GMT, up 29 cents, or 0.5 percent, from their last close. Gold slipped on Wednesday as U.S. equity futures pointed to a rebound following steep losses in the previous session. Spot gold fell 0.21 percent at $1,281.98 an ounce by 8:33 a.m. ET, while U.S. gold futures were down 0.17 percent at $1,281.20. U.S. West Texas Intermediate (WTI) crude futures were at $53.22 per barrel, up 21 cents, or 0.4 percent.