Reuters logo
US STOCKS-Futures mixed, eyes on Trump tax progress
September 29, 2017 / 11:57 AM / 2 months ago

US STOCKS-Futures mixed, eyes on Trump tax progress

* Futures: Dow down 7 pts, S&P off 0.75 pts, Nasdaq up 9.25 pts

By Sruthi Shankar

Sept 29 (Reuters) - U.S. stock index futures were mixed on the last trading day of the month as concerns lingered about President Donald Trump’s tax plan making progress through Congress.

* Trump proposed the biggest U.S. tax overhaul in three decades, calling for tax cuts for most Americans, but drew criticism that the plan favors business and the rich and could add trillions of dollars to the deficit.

* U.S. Treasury Secretary Steven Mnuchin said Trump’s proposal for a cut in the corporate income tax rate to 20 percent was “not negotiable.”

* The dollar was on track for its biggest weekly rise in 2017 on hopes of tax cuts, while the three major Wall Street indexes were set to lock in gains for the month and the quarter.

* U.S. stocks have held steady at record levels even as concerns about a standoff with North Korea, political mayhem in Washington and timing of the interest rate hikes caused brief setbacks.

* Investors will turn their focus to economic data including the personal consumption expenditures price index that could provide more clues on future path of interest rate hikes.

* A Commerce Department report due at 8:30 a.m. ET (1230 GMT) is likely to say consumer spending, which accounts for more than two-thirds of U.S. economic activity, edged up 0.2 percent in August after a slight rise of 0.4 percent in July.

* Even as inflation remains stubbornly below the Federal Reserve’s 2-percent target, a recent speech by Fed Chair Janet Yellen boosted the odds of a rate hike in December.

* Financial markets are pricing in a roughly 77 percent probability of December move, up from 71.4 percent a week ago, according to CME Group’s FedWatch tool.

* Another report due at 10:00 a.m. ET is the final reading of University of Michigan survey of consumers sentiment for September that is expected to remain unchanged at 95.3.

* Fed’s Philadelphia President Patrick Harker, a voting member of the rate-setting committee this year, is expected to speak on economic outlook later in the day.

* Nvidia was up 1.35 percent in premarket trading after Citigroup raised its price target on the stock.

* KB Home rose 3 percent after the homebuilder’s profit and revenue came above estimates, prompting a slew of price-target raises.

* Electronics and furniture retailer Conn’s was up 5.26 percent after Oppenheimer upgraded the stock to “outperform”.

Futures snapshot at 7:00 a.m. ET:

* Dow e-minis were down 7 points, or 0.03 percent, with 12,723 contracts changing hands.

* S&P 500 e-minis were down 0.75 points, or 0.03 percent, with 94,300 contracts traded.

* Nasdaq 100 e-minis were up 9.25 points, or 0.16 percent, on volume of 18,478 contracts.

Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D'Silva

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below