The Monday Market Minute

  • Wall Street futures mixed as Boeing drag Dow lower following deadly 737 crash, while upbeat comments on rates and trade boost broader U.S. equity benchmarks
  • Fed Chair Powell tells 60 Minutes he's in "no hurry" to raise rates, but cautious that growth risks to the U.S. economy are largely exogenous.
  • White House Economic Adviser Larry Kudlow sounds bullish note on U.S.-China trade, but still not sign of a near-term meeting between Presidents Trump and Xi.
  • European stocks get solid boost from trade hopes and a weaker euro, but Brexit risk keeps a cap on sentiment ahead of key Parliamentary votes Tuesday.
  • Dow called 103 low, with Boeing taking 260 points from the average, ahead of January retail sales data at 8:30 am Eastern Time. 

Market Snapshot

Wall Street looks set to snap its five day losing streak Monday, although the Dow will likely slip further into the red as Boeing (BA) - Get Report shares drag the benchmark lower following the tragic crash of one of its 737 Max jets in Ethiopia over the weekend.

Broader market sentiment, however, appeared firmly bullish ahead of the opening bell, with investors citing Federal Reserve Chairman Jerome Powell's interview on CBS's 60 Minutes, during which he said he and his colleagues were in "no hurry" to raise interest rates in the world's largest economy, as well as White House Economic Adviser Larry Kudlow's bullish assessment of U.S.-China trade talks.

"I don't want to predict," Kudlow told Fox News Sunday. "It's up to the president and not to me, but I think the headway has been good."

"Across the board, the deal has to be good for the United States and for our workers, and our farmers, and our manufacturing," he added. "It's got to be good. It's got to be fair and reciprocal and it's got to be enforceable."

The twin set of comments, both of which are firmly supportive of equity prices, boosted global markets overnight and have two of the three U.S. benchmarks set for solid opening bell gains, with contracts tied to the S&P 500 suggesting a 5.5 point bump higher and those linked to the tech-focused Nasdaq Composite indicating a xx point advance

Boeing's 8.9% pre-market decline, however, looks set to cleave around 260 points from the Dow Jones Industrial Average, according to futures prices, which suggest the 30-stock average will open 120 points south of Friday's closing levels.

European stocks were firmly higher across the board in overnight trading, with markets on the Continent getting a boost from the weaker euro, which held at 1.1245 against the dollar after last week's dovish European Central Bank rate decision, and lifting the Stoxx 600 benchmark 0.42% higher by mid-day in Frankfurt.

Britain's FTSE 100 was also notably higher, rising 0.95% in London thanks again in part to a weaker pound, which drifted to 1.2995 ahead of three key Parliamentary votes on Brexit this week in advance of the March 29 deadline for a deal with the European Union, and solid gains for energy and basic resource stocks linked to higher global oil prices.

Oil, in fact, was getting help from comments from Saudi Arabia's powerful oil minister, Khalid al-Falih, who told the Reuters news agency Sunday that he doesn't see OPEC's agreement on production cuts, which along with non-member allies such as Russia are taking around 1.2 million barrels from the market each day, ending until June at the earliest.

Brent crude contracts for May delivery, the global benchmark, were marked 58 cents higher from their Friday close and changing hands at $66.32 per barrel while WTI contracts for April were seen 51 cents higher at $56.58 per barrel.