Futures Rein In After Records Set; Asia Steps Up
As Asian markets opened higher Wednesday, futures for U.S. markets revealed a different path: traders in New York may be stopping to catch their breath after a record-setting three-day rally.
The S&P 500 was off 0.07%, the Dow Jones Industrial Average, 0.10%, and the Nasdaq, 0.09%, at 9:25 p.m. EDT.
The S&P and Dow both set new closing highs Tuesday after the Organization of Petroleum Exporting Countries, or OPEC, said it expects demand to increase next year just as oil producers reduce production to adjust to falling prices. The forecast boosted oil prices and cheered Wall Street, already in a good mood after Friday's surprisingly strong jobs report.
The S&P closed Tuesday at a record 2,152.14 points, up 0.7% from Monday, and the Dow at 18,347.67, an increase of .66%, also its highest-ever close. Nasdaq closed at 5,022.81, a bump of 0.69% but still below its highest-ever close, recorded last year at 5,210.14.
In early Asian trade, industry standard Brent crude pulled back 0.89% in to $48.04 per barrel for September delivery. That's well above its flirtations Monday with $46 per barrel. West Texas crude for August delivery pared 0.85% to $46.40 per barrel, still a recovery after it slipped below $45 per barrel Monday. Both prices were current as of 9:39 p.m. EDT.
European markets were split Tuesday as U.K. investors continued to fret over voters' desire to leave the EU. The FTSE was off 0.3% in London. Meanwhile, positive earnings supported Frankfurt and Paris with the Dax up 1.33% and the CAC 1.57%, respectively.
The pound continued a three-day recovery, up 0.32% to $1.3283 at 9:30 p.m. EDT. Currency investors think the crisis may be stabilizing as Theresa May looks to become the heir to the U.K.'s prime minister throne after Tory colleague Andrea Leadsom dropped out of what reportedly would have been a grueling contest for her.
U.K. Prime Minister David Cameron threw in the towel following the Brexit vote, which he called despite his own opposition to the U.K. leaving the EU. He said he'd like to stay on until September, but party leaders pushed for a speedier succession.
The higher Asian markets openings were spurred on by brisk trading in the U.S. and a new stimulus package promised by Shinzo Abe after the Japanese prime minister was reelected Sunday. Governments around the world are expected to step in to shore up economies and repair the fiscal damage caused by the Brexit vote.
The Nikkei was up 1.77% and Hong Kong's Hang Seng was up 0.92% at 9:43 p.m. EDT.
In extended trading, Juno Therapeutics (JUNO) saw its stock leap 24.2% to $34.52 after the Food and Drug Administration removed a clinical hold on its Phase 2 trial of an experimental leukemia drug. The Seattle-based company said it would adjust the study to alleviate the FDA concerns.
The FDA's hold sent the company's shares down 32% July 8, the day it was announced.