US open: Wall Street slips as investors play it safe

By Sharecast News

Sharecast News | 06 Jun, 2017

Updated : 15:34

23:36 15/11/24

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US futures were pointing to a slightly weaker open on Wall Street on Tuesday amid growing geopolitical concerns and ahead of a testimony to the Senate panel by former FBI boss James Comey later in the week.

At 1506 BST, the Dow Jones Industrial Average was off by 0.04% or 8.89 points to 21,174.75, with the S&P 500 losing 0.17% or 4.01 points to 2,432.11 and the Nasdaq Composite down 0.15% or 3.71 points at 2,432.37.

"Equity markets are negative today as global risk-off sentiment continues into a second day. Safe-havens, led by precious metal Gold, are enjoying dramatically increased demand ahead of Thursday's three key market events - the UK election, ECB policy meeting and ex-FBI chief Comey's testimony," said Henry Croft, research analyst at Accendo Markets.

To take note of, the yield on the benchmark 10-year US Treasury note was lower by four basis points at 2.15%, having hit an intraday low of 2.13%.

Market commentary attributed that move to a Bloomberg report citing 'people familiar with the matter' which said China was ready to begin ramping up its purchases of US Treasuries.

In economic news, the number of job openings in the US rose by 259,000 to 6.0m in April, according to the Bureau of Labour Statistics.

US home prices increased at a 6.9% year-on-year clip in April and by 1.6% month-on-month, according to CoreLogic.

On the corporate front, stock in Valeant Phamaceuticals advanced following a report that it is in talks to sell its surgical products unit to Carl Zeiss Meditec.

From a sector standpoint, the worst performing areas of the market were: Paper (-1.66%), Iron&Steel (-1.41%) and Real Estate Services (-1.19%).

Shares in G-III Apparel flew higher after the owner of the Tommy Hilfiger, Calvin Klein and Donna Karan brands raised its full-year financial guidance and reported a quarterly loss that was only half of what analysts had forecast.

Apple shares were a touch higher in pre-market trade after the technology giant unveiled its HomePod smart speaker, recovering from losses in the previous session when it was downgraded by Pacific Crest.

Elsewhere, Amazon.com was in focus after it dropped the price of its Prime membership for low income shoppers.

JA Solar chief Baofang Jin and Jinglong Group launched an all-cash take over attempt at $6.80 per American Depositary Receipt.

Dow Jones - Risers

Exxon Mobil Corp. (XOM) $80.56 0.55%
Goldman Sachs Group Inc. (GS) $215.08 0.51%
Johnson & Johnson (JNJ) $130.90 0.41%
Microsoft Corp. (MSFT) $72.51 0.33%
Verizon Communications Inc. (VZ) $46.50 0.28%
Apple Inc. (AAPL) $154.36 0.28%
E.I. du Pont de Nemours and Co. (DD) $80.88 0.27%
Unitedhealth Group Inc. (UNH) $179.80 0.24%
Intel Corp. (INTC) $36.42 0.22%
Procter & Gamble Co. (PG) $88.86 0.14%