US open: Stocks little changed as investors eye speeches by Fed officials
US equity markets were little changed on Tuesday as investors dealt with the uncertain legislative future under the Trump administration and eyed more speeches by Fed officials.
The Dow is on track for its ninth straight daily loss after investors grew weary of president Donald Trump ability of pushing through his ambitious policies of increased infrastructure spend and low taxes.
At 1530 GMT, the Dow Jones Industrial Average and the S&P 500 were both flat at 20,562.83 and 2,342.13, respectively, and the Nasdaq was down 0.12% to 5,833.55.
Meanwhile, oil prices advanced, with West Texas Intermediate up 1.03% to $48.23 a barrel and Brent crude up 1.01% to $51.27.
The dollar was 19% higher versus the pound at 0.7978, flat versus the euro at 0.9207 and down 0.29% against the yen to 110.34 following heavy losses in the previous session after Republican leaders withdrew their support for his healthcare bill to repeal Obamacare last week.
“While yesterday’s late rebound in US markets was predicated that US lawmakers would be more determined to deliver something tangible on tax reform in order to offset the healthcare failures, anything quick and tangible is likely to remain a remote prospect,” Michael Hewson, chief market analyst at CMC Markets said.
Market participants are also eyeing speeches from Kansas City Fed President Esther George, Fed Chief Janet Yellen, Dallas Fed President Rob Kaplan and Fed Governor Jerome Powell, while Fed Vice Chairman Stanley Fischer is due to be interviewed on CNBC.
In light of the way markets responded to the dovish hike earlier this month, investors will be looking to see whether policy makers remain along these lines or start talking up the prospect of another hike in June.
“For all the talk from Fed policymakers about the prospects of another two or three rate rises this year, the whole argument is moot if the new US administration and wider Republican party gets bogged down in a morass of bickering and name calling, as the fiscal ramp fizzles out, and any expected economic boost fails to materialise,” Hewson said.
On the data front, the US international trade deficit fell sharply to $64.8bn in February from $68.8bn the month earlier and better than the $66.4bn consensus forecast.
Exports fell just $0.1bn from January, while the value of imported goods decreased $4.2bn.
The S&P/Case-Shiller 20-city house price index rose 5.9% in January from 5.7% the month before and is 31-month high.
In corporate news, CryoPort tanked 44.83% after it announced a share offering as steep discount price.
Darden Restaurants surged 8.34% after the Olive Garden parent’s earnings late on Monday surpassed analysts' expectations.
American Airlines fell 0.41% after the carrier said it will make a $200m equity investment in China Southern Airlines.
Amazon rose 0.64% after striking a deal to buy Dubai-based Souq.com, the Middle East's largest online retail and marketplace site, for an undisclosed sum.
McCormick & Co was down 2.17% despite beating first quarter revenue and earnings expectations.