After Monday’s uninspiring session, US index futures are suggesting meaningful gains will be seen at the open after news that a deal had been struck to avert another US government shut down broke. The agreement hasn’t however been finalised and there’s also the matter of Trump’s border wall with Mexico which remains unanswered.
Whilst funding border security, the agreement doesn’t include money for a physical barrier, but the President is vowing that it will be built regardless. An escalation of this could well prove negative for stocks.
The economic calendar remains incredibly quiet with JOLT job openings set to be the day’s main highlight. The long tail of earnings season continues too with a slew of smaller companies reporting although the combination of Denny’s Corp (NASDAQ:DENN) and Molson Coors Brewing (NYSE:TAP) could well provide some insight as to consumer demand in the US.
Further talk of progress when it comes to a trade deal with China also has the potential to be jumped upon – positive signals were seen last night, but with a leaders’ summit not taking place this month, extending the deadline for the next round of tariff increases should be seen as the priority.
Ahead of the open we’re calling the Dow up 147 at 25200 and the S&P 500 up 14 at 2724.