U.S. stock futures hovered around the flatline on Wednesday, suggesting a choppy start to trading as investors digested geopolitical uncertainty and a fresh wave of earnings reports.
Tensions surrounding U.S.–China trade talks continued to cast a shadow over sentiment after recent comments from President Donald Trump.
During a lunch with Republican lawmakers in the White House Rose Garden on Tuesday, Trump said he expects to secure a “good deal” with Chinese President Xi Jinping, but he also acknowledged that a meeting between the two leaders might not happen.
“Maybe it won’t happen,” Trump said. “Things can happen where, for instance, maybe somebody will say, ‘I don’t want to meet, it’s too nasty.’ But it’s really not nasty. It’s just business.”
Trump further noted he may also cancel a planned meeting with Russian President Vladimir Putin, citing a desire not to “have a waste of time.”
The lack of major economic data ahead of Friday’s key inflation release is also likely keeping many investors on the sidelines.
Early moves on Wall Street may be shaped by corporate earnings. Shares of Netflix (NASDAQ:NFLX) were down 7.7% in premarket trading after the streaming platform reported third-quarter earnings that fell short of expectations.
Toy maker Mattel (NASDAQ:MAT) was also poised to come under pressure following a similar earnings miss.
In contrast, Intuitive Surgical (NASDAQ:ISRG) jumped 18.4% premarket after posting stronger-than-expected results, while Capital One Financial (NYSE:COF) also looked set for early gains after beating estimates on both revenue and profit.
Markets had already shown signs of fatigue in Tuesday’s session. The S&P 500 and Nasdaq Composite fluctuated around the flatline, while the Dow Jones Industrial Average managed to notch a record close, driven by strength in a handful of blue chips.
The Dow finished up 218.16 points, or 0.5%, at 46,924.74 after pulling back from session highs. The S&P 500 inched up 0.22 points to 6,735.35, and the Nasdaq slipped 36.88 points, or 0.2%, to 22,953.67.
Gains in the Dow were fueled in part by a 7.7% surge in 3M (NYSE:MMM), which beat third-quarter earnings forecasts. The Coca-Cola Company (NYSE:KO) also climbed 4.1% after exceeding expectations on both top and bottom lines.
Other Dow constituents, including Salesforce (NYSE:CRM), Amazon.com, Inc. (NASDAQ:AMZN) and The Sherwin-Williams Company (NYSE:SHW), contributed to the upside.
Still, the broader market lacked clear direction as investors paused after a recent rally, weighed down by persistent concerns over U.S.–China trade tensions and the ongoing government shutdown. With most economic reports delayed, Friday’s consumer price inflation data could be a pivotal input ahead of the Federal Reserve’s policy meeting next week.
Most sectors ended Tuesday with modest moves. Oil service stocks outperformed, lifting the Philadelphia Oil Service Index by 2.3%, thanks to an 11.6% surge in Halliburton (NYSE:HAL) after its strong results. Housing stocks also gained, with the Philadelphia Housing Sector Index up 1.7%, while retailers posted solid advances.
Meanwhile, gold stocks tumbled alongside bullion prices, dragging the NYSE Arca Gold BUGS Index down 10%.
Leave a Reply