SampP, Nasdaq futures edge higher following lackluster week Boeing pressures Dow
(Reuters) - The S&P 500 and Nasdaq futures eked out gains on Monday as investors took a cautious stance after a weak U.S. jobs report raised questions of slowing global growth, while a slide in planemaker Boeing’s shares pressured Dow futures.
Boeing Co tumbled 8.9 percent in premarket trading after many airlines grounded the world’s biggest planemaker’s new 737 MAX 8 passenger jet following the second deadly crash in just five months.
The S&P 500 index is now nearly 7 percent away from its record high hit on Sept. 20. The benchmark index ended the week 2.2 percent lower, its biggest weekly decline since the market tumbled at the end of 2018.
The U.S. report on Friday showed employment growth almost stalled in February, which added to economic fears that were already fanned by a sharp fall in China’s exports and after the European Central Bank slashed growth forecasts for the region last week.
As concerns of a slowing economy linger at the surface, the Commerce Department’s retail sales data at 8:30 a.m. ET, will be closely monitored.
The numbers are expected to show retail sales dipped 0.1 percent in January after a shocking 1.2 percent fall in the month before, which suggested a sharp slowdown at the end of 2018.
In a bright spot, the Federal Reserve Chairman Jerome Powell stuck to his dovish message on Sunday. He said the central bank does “not feel any hurry” to change the level of interest rates again as it watches how a slowing global economy affects conditions in the United States.
At 6:46 a.m. ET, Dow e-minis were down 173 points, or 0.68 percent. S&P 500 e-minis were up 1.5 points, or 0.05 percent and Nasdaq 100 e-minis were up 13.25 points, or 0.19 percent.
China and the United States are still working day and night to achieve a trade deal that matches the interests of both sides and the hopes of the world, including eliminating tit-for-tat tariffs, a senior Chinese official said on Saturday.
Apple Inc rose 1.7 percent after Bank of America Merrill Lynch upgraded the iPhone maker’s shares to “buy” from “neutral” saying the pulling back in its shares present a buying opportunity.
Nvidia Corp fell 1.4 percent after the chipmaker said it will buy Mellanox Technologies Ltd for more than $6.78 billion in cash. The Israeli chip designer jumped 9.4 percent.
In other news, President Donald Trump on Monday will ask lawmakers to hike spending for the military and the wall he wants to build on the U.S.-Mexico border and slash other programs in his 2020 budget.
The Republican president’s proposal, slated for release at 11:30 a.m. (1530 GMT), is expected to be rejected by Congress.
Reporting by Amy Caren Daniel and Medha Singh in Bengaluru; Editing by Shounak Dasgupta