'The grind higher in risk assets continues,' strategist says
U.S. stock futures pointed to little change at the open, putting the main benchmarks on track to hold near their all-time closing highs. Investors also are taking in another round of quarterly earnings reports and awaiting a speech from departing Federal Reserve Chairwoman Janet Yellen.
What are the main benchmarks doing?
S&P 500 futures inched up by 0.55 point, or less than 0.1%, to 2,589.25, while Dow Jones Industrial Average futures tacked on 20 points, or 0.1%, to 23,518.00. Nasdaq-100 futures dipped by 1.75 points, or less than 0.1%, to 6,311.75.
On Monday, the S&P 500 , Dow and Nasdaq Composite rose to all-time closing highs (http://www.marketwatch.com/story/us-stocks-to-struggle-to-hang-onto-record-levels-2017-11-06), marking the 26th time this year that they've notched records simultaneously. The three gauges are up between 16% and 26% for the year as of Monday's close, boosted by factors such as an expanding U.S. economy, growing corporate profits and bets that the Trump administration will deliver tax cuts and other business-friendly measures.
What are strategists saying?
"The grind higher in risk assets continues," said Chris Weston, chief market strategist at IG, in a note (https://twitter.com/ChrisWeston_IG/status/927666011049836544). "Every single intraday dip in U.S. and other developed market indices is supported, and the news flow is hardly even creating a sweat for the bulls."
A pullback for stocks continues to be "the higher probability outcome," Weston also said.
What could help drive markets?
President Donald Trump, on a trip throughout Asia, warned North Korea that he was prepared to use the full range of U.S. military power to stop any attack. But in a more conciliatory appeal, he urged Pyongyang to "make a deal" to end the nuclear standoff, a Reuters report said (http://www.reuters.com/article/us-trump-asia-southkorea/at-north-koreas-doorstep-trump-warns-of-u-s-power-while-also-striking-conciliatory-note-idUSKBN1D61YG).
On the Fed front, Yellen is due to give a speech at 3 p.m. Eastern Time in Washington, D.C., as the departing chairwoman accepts an award for ethics in government.
Before that, the central bank's vice chairman for supervision, Randal Quarles, is slated to talk at 12:35 p.m. Eastern at a conference focused on banking regulations and the payments industry.
What data are ahead?
September figures for job openings are due to arrive at 10 a.m. Eastern and a report on consumer credit is due at 3 p.m. Eastern, respectively.
Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)
Which stocks are in focus?
Shares in Priceline Group Inc.(PCLN) and TripAdvisor Inc.(TRIP) fell 11% and 9% in premarket action, respectively, after each online travel company sounded downbeat (http://www.marketwatch.com/story/tripadvisor-plummets-more-than-10-after-earnings-2017-11-06) about fourth-quarter revenue (http://www.marketwatch.com/story/priceline-stock-falls-more-than-6-on-weak-fourth-quarter-guidance-2017-11-06) while posting earnings late Monday. The companies also seem to be planning an increase in advertising spending (http://www.marketwatch.com/story/travel-industry-ad-wars-hurting-expedia-priceline-and-tripadvisor-stocks-2017-11-06).
Etsy Inc.'s (ETSY) stock looks set for an up day after the craft-oriented e-commerce company late Monday said it had swung to a quarterly profit (http://www.marketwatch.com/story/shares-of-esty-rise-after-craft-oriented-retailer-swings-to-profit-2017-11-06).
Valeant Pharmaceuticals International Inc.(VRX.T) jumped after it reported better-than-expected quarterly result, but the company lowered its guidance for the rest of 2017.
Dean Foods Co.(DF) reported revenue of $1.94 billion, compared with Wall Street estimates for revenue of $1.96 billion and profit of 20 cents a share, versus 21 cents expected, representing weaker-than-expected profit and revenue for the foods company.
SeaWorld Entertainment Inc.(SEAS) reported third-quarter earnings on Tuesday that were below Wall Street expectations (http://www.marketwatch.com/story/seaworld-reports-down-third-quarter-earnings-below-expectations-2017-11-07). Net income for the quarter was $55.03 million, or 64 cents per share, down from $65.66 million, or 77 cents per share during the same quarter a year ago.
Crocs Inc. (CROX) shares were set to fall after the footwear seller beat revenue expectations but provided a downbeat outlook (http://www.marketwatch.com/story/croxs-stock-set-for-losses-after-revenue-beats-expectations-but-outlook-falls-short-2017-11-07). For the quarter to Sept. 30, the net loss was $2.3 million, or 3 cents a share, compared with a loss of $5.4 million, or 7 cents a share, in the same period a year ago.
What are other assets doing?
Europe's main stock gauges traded either flat or up slightly. Asian markets mostly finished higher (http://www.marketwatch.com/story/lack-of-immediate-risk-pushes-asia-pacific-markets-to-multiyear-highs-2017-11-06), with Japan's Nikkei benchmark jumping 1.7% to reach its highest close since 1992, as one analyst noted "few risks on the horizon."
Haven plays such as gold futures and the Japanese yen were losing ground. The ICE U.S. Dollar Index traded higher, while West Texas Intermediate crude were little changed after surging in the previous session.
(END) Dow Jones Newswires
November 07, 2017 07:21 ET (12:21 GMT)