US STOCKS-Futures tick higher; auto, health stocks in focus - Reuters News
11-May-2018 09:07:12 PM
- Symantec slides on probe after ex-employee raises concern
- Nvidia drops after results on crypto worries
- Trump to discuss fuel efficiency standards with automakers
- Dow up 0.15 pct, S&P up 0.16 pct, Nasdaq off 0.05 pct
By Sruthi Shankar
May 11 (Reuters) - Wall Street was set to open slightly higher on Friday, with auto and healthcare stocks to be in focus as President Donald Trump is set to address issues related to the two sectors.
Trump will meet 10 major automakers, including the heads of General Motors, Ford and Fiat Chrysler, at the White House to discuss the fate of landmark fuel efficiency standards and a looming confrontation with California and other major states.
The president is also expected to renew his focus on controlling prescription drug prices in a highly anticipated speech at 2:00 p.m. ET that could lead to volatility in healthcare stocks.
"It's relatively quiet in terms of drivers today. Trump's speech really hasn't had much of an impact on pharma or biotech thus far," said Art Hogan, chief market strategist at B. Riley FBR in Boston.
"Three of the four drivers that we had yesterday are still with us, benign 10-year (Treasury yields), oil and dollar, and technically breaking above the 100-day and 50-day on S&P was significant."
The S&P 500 reclaimed its 100-day moving average on Thursday, suggesting to some traders that the market may move higher. A day earlier it had topped its 50-day moving average, an indicator of short-term momentum.
"When you have a breakout, it tends to have a follow through, but early indications look like we maybe a little bit behind on yesterday's rally."
At 8:46 a.m. ET, Dow e-minis were up 37 points, or 0.15 percent. S&P 500 e-minis were up 4.25 points, or 0.16 percent and Nasdaq 100 e-minis were down 3.25 points, or 0.05 percent.
The tech sector could be under pressure from a set of disappointing results, though Apple could give it some boost.
The stock was marginally up in premarket trading, putting it on course to extend a nine-day rally that has sent it to a record high.
Nvidia, the best performing chipmaker this year, fell 2.1 percent after revenue from its closely-watched data center business missed analysts' estimates.
The results could pressure shares of other chipmakers. Advanced Micro Devices was down 1.3 percent.
Symantec Corp slumped 29.7 percent after the Norton Antivirus maker said it was investigating concerns raised by a former employee and reported full-year results below analysts' estimates.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D'Silva)
UPDATE 6-Oil near multi-year highs as Iran sanctions tighten supply outlook - Reuters News
11-May-2018 07:57:16 PM
- U.S. plans reintroduction of sanctions against Iran
- Iran oil exports expected to drop as sanctions bite
- Other producers could increase output to meet shortfall
Updates prices in paragraphs 4-5
By Christopher Johnson
LONDON, May 11 (Reuters) - Oil prices steadied near 3-1/2 year highs on Friday as the prospect of new U.S. sanctions on Iran tightened the outlook for Middle East supply at a time when global crude production is only just keeping pace with rising demand.
The United States plans to reintroduce sanctions against Iran, which pumps about 4 percent of the world's oil, after abandoning a deal reached in late 2015 that limited Tehran's nuclear ambitions in exchange for the removal of U.S. and European sanctions.
The global oil market is finely balanced, with top exporter Saudi Arabia and No.1 producer Russia having led efforts to curb oil supply to prop up prices.
Benchmark Brent crude was down 20 cents at $77.27 a barrel by 1155 GMT. On Thursday Brent hit $78, its highest since November 2014.
U.S. light crude was unchanged at $71.36, having touched a 3-1/2 year high of $71.89 on Thursday.
Many analysts expect oil prices to rise as Iran's exports fall.
"The up-trend remains strong and intact," said Robin Bieber, technical chart analyst at London brokerage PVM Oil Associates.
Rainer Seele, chief executive of Austrian oil and gas company OMV, told German daily Handelsblatt that he expects prices to rise as the United States moves to reimpose sanctions.
"It is not yet clear which concrete sanctions the U.S. will impose. But I expect the price of North Sea Brent to be closer to $80 than $70 a barrel," Seele said in an interview.
U.S. investment bank Jefferies said in a note on Friday that it expects Iranian crude oil exports to start falling in the next few months.
"We expect that around October Iranian exports will be down by 500,000 barrels per day (bpd) and eventually fall by 1 million bpd," the bank said.
There are signs, however, that other members of the Organization of the Petroleum Exporting Countries (OPEC) will raise output to counter the Iran disruption.
Jefferies said that OPEC has the capacity "to replace the Iranian losses" but added: "Even if physical supply is held constant ... the market will still be faced with a precariously low level of spare capacity."
Outside OPEC, soaring U.S. crude oil production could help to fill Iran's supply gap. U.S. oil output reached another record high last week, hitting 10.7 million bpd.
That is up 27 percent since mid-2016 and means that U.S. output is creeping ever closer to that of top producer Russia, which pumps about 11 million bpd.
(Additional teporting by Henning Gloystein in Singapore
Editing by David Goodman and Jason Neely)
PRECIOUS-Soft U.S. inflation pushes gold prices higher - Reuters News
11-May-2018 08:30:08 PM
- U.S. dollar and bond yields fall
- Gold up 0.8 percent this week
- Nudges 100-day moving average
- Investors brush off Middle East tensions
(Updates prices)
By Peter Hobson
LONDON, May 11 (Reuters) - Gold was set for its first weekly gain in four weeks on Friday after soft U.S. inflation data suggested that the Federal Reserve might show caution on the pace of interest rate rises.
The weaker-than-expected April consumer price data on Thursday helped to knock the dollar from 2018 highs and push U.S. bond yields down. Both fell further on Friday.
That benefits gold because a weaker dollar makes bullion cheaper for users of other currencies, while lower bond yields make non-yielding gold more attractive to investors.
"It (gold's rise) was mostly a response to the consumer price data out of the U.S. yesterday," Capital Economics analyst Simona Gambarini said.
Spot gold was up 0.3 percent at $1,324.71 an ounce by 1156 GMT after touching its highest since April 26 at $1,325.61, nudging its 100-day moving average of $1,326. It was up 0.8 percent for the week.
U.S. gold futures for June delivery had gained 0.2 percent to $1,325.40.
Gold has traded in a range of about $1,310 to $1,355 since hitting a 1-1/2-year high in January.
Prices appeared to be building positive momentum, ScotiaMocatta technical analysts said.
Consolidation above resistance at the 100-day moving average might be a catalyst for more gains, MKS PAMP trader Tim Brown said.
But with the Fed likely to raise interest rates three more times this year, gold was likely to end 2018 at $1,300, Capital Economics' Gambarini said. Higher interest rates hurt gold because they push up bond yields and tend to boost the dollar.
Federal Reserve Bank of St. Louis head James Bullard will make a speech on Friday, as will European Central Bank President Mario Draghi.
Gold investors largely brushed off tensions in the Middle East after the United States ditched an accord designed to stop Iran from developing nuclear weapons. Two days after this, Israel attacked Iranian military infrastructure in Syria.
"Geopolitical concerns are still a concern but investors aren't paying significant attention," Think Markets chief markets analyst Naeem Aslam said.
"The dollar story is more prominent," he said.
A summit between the United States and North Korea to be held in Singapore on June 12 also eased fears of conflict.
Gold is traditionally seen as a safe asset in times of uncertainty.
In other precious metals, silver was up 0.8 percent at $16.80 an ounce, rising above its technically important 100-day moving average and nearing its 200-day moving average. It was at 2-1/2-week highs and set for a weekly gain of 2 percent.
Platinum was flat at $924, having hit its highest since April 25 at $928.
Palladium advanced by 0.6 percent to $1,004.70, holding above its technically important 200-day moving average after reaching its highest since April 23.
(Additional reporting by Apeksha Nair in BENGALURU Editing by Louise Ireland)
CBOT Trends-Wheat down 4-5 cents, corn down 2-3, soybeans down 7-9 - Reuters News
11-May-2018 09:27:21 PM
CHICAGO, May 11 (Reuters) - Following are U.S. trade expectations for the resumption of grain and soy complex trading at the Chicago Board of Trade at 8:30 a.m. CDT (1330 GMT) on Friday.
WHEAT - Down 4 to 5 cents per bushel
- Wheat heading lower for a third straight session on technical selling and pressure from the U.S. Department of Agriculture's larger-than-expected U.S. wheat production forecast. CBOT July wheat is testing psychological support at the $5-per-bushel mark.
- Statistics Canada reported Canadian all-wheat stocks as of March 31 at 16.4 million tonnes, below an average of trade expectations for 16.9 million.
- The CBOT reported 41 May wheat deliveries, the first of the cycle, and no K.C. May wheat deliveries. The MGEX reported no May spring wheat deliveries.
- CBOT July soft red winter wheat last down 5-1/2 cents at $5.01 per bushel. K.C. July hard red winter wheat last down 4-3/4 cents at $5.22-1/4 and MGEX July spring wheat was down 2-1/2 cents at $6.06-1/2 a bushel.
CORN - Down 2 to 3 cents per bushel
- Corn lower on technical selling and spillover weakness from soybeans and wheat. CBOT July corn dipped to $3.98-1/4 a bushel, its lowest since April 27.
- The USDA in Thursday's supply/demand report left its 2017/18 U.S. corn ending stocks forecast unchanged at 2.182 billion bushels and projected 2018/19 ending stocks at 1.682 billion bushels, above the average trade estimate of 1.628 billion.
- The CBOT reported 33 deliveries against May corn futures.
- CBOT July corn last down 3-1/4 cents at $3.98-3/4 a bushel.
SOYBEANS - Down 7 to 9 cents per bushel
- Soybeans lower on technical selling ahead of the weekend, with the CBOT July contract falling below its 200-day moving average near $10.16 a bushel. Traders shifting their focus after Thursday's USDA supply/demand reports back to U.S. crop weather.
- Statistics Canada reported Canadian canola stocks as of March 31 at 9.1 million tonnes, below an average of trade expectations for 9.4 million.
- Deliveries against CBOT May soybeans totaled 68 contracts. The CBOT reported no May soymeal deliveries and 45 May soyoil deliveries.
- CBOT July soybeans last down 8-1/2 cents at $10.12-3/4 per bushel.
(Reporting by Julie Ingwersen)
GRAINS-Wheat slips further as U.S. crop forecast weighs - Reuters News
11-May-2018 09:30:28 PM
- Wheat down for third day, set for weekly fall
- Bigger than expected USDA forecast of U.S. crop weighs
- Soybeans down, slower Chinese demand in focus
Updates with European trading, changes byline/dateline
By Gus Trompiz and Naveen Thukral
PARIS/SINGAPORE, May 11 (Reuters) - Chicago wheat eased for a third consecutive session on Friday to keep the market on course for a weekly fall after a bigger than expected official forecast of U.S. wheat production kept the focus on ample supplies.
Soybeans also eased as attention remained on slowing demand in top importer China, despite a lower than anticipated U.S. government forecast of U.S. soybean stocks next season.
Corn also edged lower.
The most-active wheat contract on the Chicago Board Of Trade slipped 1.1 percent to $5.01 a bushel by the end of the overnight session, but held above the psychological $5 level it had touched on Thursday.
Soybeans were down 0.8 percent at $10.12-3/4 a bushel and corn was 0.8 percent lower at $3.98-3/4.
"Some investors may have decided that without another crop downgrade the rally in wheat prices has come to an end. We agree with that view," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.
"The USDA is also forecasting a hefty rise in spring, durum and other high protein spring wheat production."
The U.S. Department of Agriculture projected the total U.S. wheat crop for the 2018-19 marketing year at 1.821 billion bushels, above the average analyst estimate for 1.777 billion and up 5 percent from the prior year.
Winter wheat grown in the southern U.S. Plains has struggled with months of drought, but the USDA said combined production of spring and durum wheat would increase 34 percent from the previous year.
The agency expects global wheat stocks to total around 264.33 million tonnes by the end of 2018-19 marketing year, only 2 percent below an all-time high of 270.46 million expected this season.
Soybean futures eased despite the USDA's outlook calling for a sharp drop in U.S. stocks, supported by increased demand.
"The optimistic USDA forecast of demand for US soybeans was countered by the Chinese Ministry of Agriculture reporting that 2018/19 will likely see the country reduce its soybean imports for the first time in 15 years," Commerzbank analysts said.
(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore, Editing by Sherry Jacob-Phillips and Elaine Hardcastle)
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