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Wall Street to head higher; Boeing in focus

Published 2020-01-13, 06:48 a/m
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Investing.com - Wall Street is expected to push back towards record territory at the open Monday, rebounding after Friday’s slide, as geopolitical risks abate and investors become more confident about the potential for global growth.

Futures for the S&P 500 were trading 9 points, or 0.3%, higher by 06:55 ET (11:55 GMT), futures for theNasdaq 100 were 37 points, or 0.4%, higher, while the Dow Jones 30 Futures contract was up 88 points, or 0.3%.

The Iranian authorities may be under pressure from domestic protests over the downing of the Ukrainian passenger plane last week, but fears of major military action in the Middle East have dimmed. At the same time, news that Chinese President Xi Jinping’s chief trade negotiator will sign a 'phase one' trade deal with the U.S. on Wednesday has boosted sentiment.

Friday’s disappointing nonfarm payrolls release took some of the froth off the U.S. stock markets, but this increases the chances of the Federal Reserve keeping interest rates at very low levels for the foreseeable future. And investors are reacting positively to the combination of cheap money and global growth.

Attention will soon turn to the new earnings season, with a number of big banks set to report tomorrow. For Monday, eyes will be on Boeing (NYSE:BA) as new Chief Executive David Calhoun takes over at a planemaker struggling to recover from the worldwide grounding of its 737 MAX model series. Additionally, eyes will be on the market reaction to the news that former Boeing chief Dennis Muilenburg, who was fired in December, has left the company with $62 million in compensation and pension benefits.

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