By Victor Reklaitis, MarketWatch
Target jumps after earnings, while Lowe's slumps
U.S. stock futures on Wednesday pointed to a dip at the open, setting the Dow Jones Industrial Average on track to catch its breath after the blue-chip gauge turned in a seventh winning session in a row and its fourth straight record close.
Investors are watching for signs of what's coming down the pike from President-elect Donald Trump, as well as keeping an eye out for readings on the housing market, industrial production and producer prices.
Dow Jones Industrial Average futures pulled back by 40 points, or 0.2%, to 18,840, while S&P 500 futures shed 6.30 points, or 0.3%, to 2,173. Nasdaq-100 futures lost 13.75 points, or 0.3%, to 4,752.25.
On Tuesday, the Dow closed higher by 54 points (http://www.marketwatch.com/story/dow-on-pace-for-7th-straight-up-session-2016-11-15), or 0.3%, while the S&P tacked on 0.8%, as the stock market continued its post-election updraft. The S&P stands roughly 0.5% off its mid-August record close.
While the early U.S. action on Wednesday was modestly negative, analysts are bracing for more advances.
"With sentiment towards the U.S. economy turning bullish amid the rising optimism of higher economic growth under Trump's presidency, Wall Street could be poised for further gains," said Lukman Otunuga, a research analyst at FXTM, in a note on Wednesday.
Read more:Trump transition team's incoherence could torpedo market rally (http://www.marketwatch.com/story/trump-transition-teams-incoherence-could-torpedo-market-rally-2016-11-16)
And see:Trump on picking Cabinet: Only he 'knows who the finalists are' (http://www.marketwatch.com/story/trump-on-picking-cabinet-only-he-knows-who-the-finalists-are-2016-11-16)
Individual movers: Retailers Target Corp.(TGT) and Lowe's Cos.(LOW) were among the companies posting earnings before the open, and Target jumped 6% in premarket action after raising its 2016 profit guidance (http://www.marketwatch.com/story/target-shares-jump-after-earnings-beat-guidance-raised-2016-11-16), while Lowe's was 6% lower after a guidance cut (http://www.marketwatch.com/story/lowes-cuts-guidance-as-traffic-slows-2016-11-16).
Target was the S&P 500's biggest premarket winner, while Lowe's was the benchmark's biggest loser.
LinkedIn Corp.'s stock (LNKD) gained 1% in premarket trade following a Reuters report (http://www.reuters.com/article/us-linkedin-m-a-microsoft-eu-idUSKBN13B0SO) that software giant Microsoft Corp.(MSFT) has offered concessions to European antitrust regulators over its $26 billion bid for the social network for professionals.
Boeing Co.(BA) added 0.5% after the planemaker said it plans to eliminate another 500 jobs over four years and shutter two plants in Texas and Virginia.
Other markets: Oil futures traded roughly 2% lower, erasing part of Tuesday's jump of nearly 6% (http://www.marketwatch.com/story/oil-prices-snap-back-after-three-sessions-of-losses-2016-11-15). The International Energy Agency on Wednesday said global crude demand won't stop growing before 2040 (http://www.wsj.com/articles/iea-seespeak-oil-demand-after-2040-1479283354). Europe's main stock benchmark was edging down, while Asian markets closed mostly with gains (http://www.marketwatch.com/story/asian-stocks-peek-higher-led-by-financials-2016-11-15). Gold futures fell slightly, as the ICE U.S. Dollar Index inched up (http://www.marketwatch.com/story/dollars-march-higher-takes-a-break-as-investors-wonder-if-its-gone-too-far-2016-11-16).
Economic news: An October figure for a producer price index is slated to hit at 8:30 a.m. Eastern Time, with economists polled by MarketWatch forecasting growth of 0.3%.
At 9:15 a.m. Eastern, investors will get an October report on industrial production, with a rise of 0.2% expected. A November figure for a housing market index is on tap for 10 a.m. Eastern.
On the Federal Reserve front, St. Louis Fed President James Bullard said early Wednesday that he is still leaning toward backing an interest-rate rise in December (http://www.marketwatch.com/story/feds-bullard-still-favoring-december-rate-hike-after-election-2016-11-16).
At 7:45 a.m. Eastern, Minneapolis Fed President Neel Kashkari is due to discuss his "too big to fail" initiative (http://www.startribune.com/kashkari-s-challenge-this-week-not-being-ignored/400874851/).
(END) Dow Jones Newswires
November 16, 2016 07:15 ET (12:15 GMT)
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