Dow, Nasdaq Futures Trade Flat Amid Government Shutdown Threat — Traders Eye Jobs Data, Nike Earnings

U.S. stocks look set to start Tuesday’s session lower after the major averages ended in the green for a second straight session. The market mood is likely to remain cautious again as a potential government shutdown looms, casting further doubts on the release of key economic data, including the week’s monthly non-farm payrolls report. 

President Donald Trump’s fresh tariff threats on furniture imports and foreign-made movies further complicate the outlook. An economist, however, shrugged off the near-term noises. WisdomTree Senior Economist Jeremy Siegel said in his weekly commentary that the tariff impact, which will likely become clearer in the fourth quarter, the government shutdown risk, and inflation will not alter his baseline outlook that the economy enters the fourth quarter with momentum and inflation under control.

As of 2 a.m. ET on Tuesday, the S&P 500, Nasdaq 100, Dow and Russell 2000 futures all traded marginally.

Thanks to the strength in IT, financial and material stocks, the market advanced on Monday, although amid volatility. Nvidia rallied over 2% and settled above the $180 level for the first time in more than a month, while videogame software maker EA’s (EA) $55 billion going-private leveraged buyout deal also lifted sentiment. 

That said, the mood remained muted throughout the session as traders digested a strong pending home sales report and remained wary about the outcome of the ongoing negotiations among lawmakers to avert a potential government shutdown.

The SPDR S&P 500 ETF (SPY), an exchange-traded fund (ETF) that tracks the S&P 500 Index, and the Invesco QQQ Trust (QQQ) rose 0.28% and 0.46%, respectively. The SPDR Dow Jones Industrial Average ETF Trust (DIA) and the Shares Russell 2000 ETF (IWM) gained 0.16% and 0.12%, respectively.

In Tuesday’s session, traders are likely to focus on a few speeches by Federal Reserve officials, the August Job Openings and Labor Turnover Survey (JOLTS) report (10 a.m. ET), the Conference Board’s consumer confidence index for September (10 a.m. ET) and the Chicago region’s business activity data for September (9:45 a.m. ET). 

A pair of housing price reports — S&P Case-Shiller and the Federal Housing Finance Agency (FHFA) — is also due at 9 a.m. ET.

Among the Fed speakers are:

1. Fed Chair Philip Jefferson (6 a.m. ET)
2. Boston Fed’s Susan Collins (9 a.m. ET)
3. Chicago Fed’s Austan Goolsbee (1:30 p.m. ET and 3:30 p.m. ET)

Paychex (PAYX), United Natural Foods (UNFI) and Nike (NKE) are due to announce their quarterly results on Tuesday.

Crude oil futures, which slumped by more than 3% on Monday amid waning supply concerns, extended their losses early Tuesday. OPEC+ members signaled their intention to implement another output hike in November. Gold futures pushed to a new record. 

The 10-year U.S. Treasury note yield remained essentially unchanged early Tuesday after retreating in the previous session. The U.S. dollar was seen treading water ahead of the looming Sept. 30 deadline for lawmakers to agree upon a new funding deal. 

The major Asian markets traded mostly higher on Tuesday as domestic traders looked ahead to key risk events from the U.S.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: ‘Incredible’ or ‘Absolute Bubble’? AppLovin Retail Buzz Explodes After Record Rally Brings Valuation Closer To Giants

Share

·

Add us on