S&P 500 on Track for New High
By Avantika Chilkoti
The S&P 500 was poised to open above its previous intraday
high Monday ahead of another busy week of corporate earnings and
Stock futures tied to the broad stock-market index edged up 0.4%
and were on track to open above their intraday record of 3027.98
from July 26.
Ahead of the New York opening bell, shares in Tiffany surged 29%
after LVMH Moët Hennessy Louis Vuitton confirmed its talks for a
potential takeover that would value the iconic jewelry brand at
$14.5 billion. Shares in LVMH gained 0.2% in Paris trading.
Microsoft gained 2.7% in premarket trading after the software
company won a contract worth up to $10 billion over the next decade
from the Pentagon.
Investors are braced for a slew of corporate results later
Monday with companies including Beyond Meat and Alphabet due to
The lack of growth in corporate third-quarter earnings is
largely because the year-earlier period was unusually strong, said
Esty Dwek, a strategist at Natixis Investment Managers. Fast-moving
geopolitical events are also holding back corporate performance,
"It's a confirmation that there's a lot of uncertainty, and the
more you can remove some of this uncertainty the more you'll have
better guidance and confidence in terms of hiring and investing,"
Ms. Dwek said.
Meanwhile, the pan-continental Stoxx Europe 600 index was mostly
flat. HSBC Holdings was among the biggest losers in Europe,
shedding 4% after the bank dropped its main financial target and
said it would speed up plans to revamp its U.K., U.S. and European
The U.K.'s FTSE 100 gauge was mostly flat as U.K. Prime Minister
Boris Johnson urged lawmakers to support his push for a Dec. 12
general election as a way to clear a path to Brexit. European Union
leaders agreed to a three-month extension to the Brexit deadline,
extending the political uncertainty until Jan. 31. The British
pound was also mostly flat against the dollar.
The decision marks the third time Brexit has been extended this
"You could see elections as a second referendum, so if Johnson
does win a majority it is a vote for Brexit to happen and his deal
to go through, " said Ms. Dwek.
The yield on 10-year Italian government debt rose to 0.971% from
0.948% Friday following preliminary results from local elections
this weekend. The results will allow center-right political leaders
to campaign against the current administration in a bid to boost
their popularity, according to analysts at UniCredit.
Asian markets had a stronger start to the week. The Shanghai
Composite Index gained almost 0.9%, and Hong Kong's benchmark Hang
Seng Index gained 0.8%.
The yield on 10-year Treasurys rose to 1.835%, its highest level
since mid-September as investors anticipate the Federal Reserve
will deliver another 25 basis point cut.
"Recent softer U.S. data would justify the cut," Barclays
analysts said in a note to clients. "However, the temporary easing
of global risks reduces the need for further insurance, and the Fed
could signal more willingness to follow a "meeting-by-meeting"
Write to Avantika Chilkoti at Avantika.Chilkoti@wsj.com
(END) Dow Jones Newswires
October 28, 2019 09:32 ET (13:32 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.