Portfolio

US pre-open: Stocks seen a touch lower but Snap surges on results

By Michele Maatouk

Date: Wednesday 06 Feb 2019

US pre-open: Stocks seen a touch lower but Snap surges on results

(Sharecast News) - US stock futures pointed to small losses at the open on Wednesday as President Trump's State of the Union address left investors wanting more.
At 1215 GMT, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were all down 0.1%.

Investors were likely to still be mulling over Trump's speech on Tuesday, which Oanda analyst Craig Erlam said "wasn't much of a market mover, more a reminder of the President's priorities and determination to get various initiatives over the line".

"The border wall and trade talks with China were the primary focus for investors and in both cases, nothing new was learned. Trump continues to resist the temptation to invoke emergency powers for now which means another government shutdown on 15th of this month remains a possibility.

"The recent labour market data we saw may put investors at ease about the prospect of another prolonged stalemate in Washington but it's the political cost that is likely to be of greater concern ahead of next year's election, which could mean we avoid a repeat of January. If Trump accepts, as he appears to have, that he was faring worse as a result of the shutdown in January then he'll surely want to avoid another rather than hope that next time will be different."

In corporate news, shares in Snapchat parent Snap surged more than 23% in pre-market trade on better-than-expected earnings late on Tuesday.

Shares in health insurer Humana could be active after the company posted a 7.4% jump in fourth-quarter revenue, while Boston Scientific was a little higher in pre-market trade after saying it swung to a profit in the fourth quarter.

Pharmaceuticals group Eli Lilly was 2.7% lower even as its fourth-quarter revenue beat expectations as earnings were a miss and the company cut its 2019 outlook.

Elsewhere, Take-Two Interactive Software was likely to be in focus after the release of its fourth-quarter numbers.

Earnings are still due from General Motors and Spotify, while on the data front, trade balance figures are at 1330 GMT.

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