Markets are poised to open with gains Tuesday, the first day of trading under the second administration of U.S. President Donald Trump.
Futures for the S&P 500 and Dow Jones Industrial Average rose about 0.4% each before the bell, while Nasdaq futures ticked 0.5% higher. U.S. markets were closed Monday for the Martin Luther King Jr. Day holiday, which coincided with Trump's inauguration.
Some analysts said the inauguration would inject optimism into global markets, while others said the threat of higher tariffs might hurt sentiment.
Trump's release of an "America First Trade Policy" memo after he took office Monday indicated he would take no immediate action on raising tariffs, possibly alleviating immediate concerns about threats of double-digit tariffs on all imports. However the plan calls for a broad reassessment and overhaul of U.S. trade policy.
Stephen Innes, managing partner at SPI Asset Management, said the twist calmed global markets.
In early equities trading, Walgreen's shares tumbled more than 7% after the U.S. Justice Department late Friday accused the drug store chain of filling millions of prescriptions without a legitimate purpose, including for dangerous amounts of opioids. In the lawsuit, the government says the drugstore chain's pharmacists filled controlled substance prescriptions with clear red flags that indicated they were highly likely to be unlawful.
Walgreens, one of the country’s largest pharmacy chains with over 8,000 locations, said in a statement that it stands behind its pharmacists.
3M climbed close to 4% after the industrial and consumer products maker beat Wall Street’s fourth-quarter sales and profit targets and issued strong sales guidance for the coming year.
In Europe at midday, France's CAC 40 gained 0.1%, Germany's DAX inched down 0.1% and Britain's FTSE 100 was essentially unchanged.
Worries about the effects of Trump’s policies on China have eased somewhat as both sides have pledged to work to improve relations.
Hong Kong's Hang Seng index rose 0.9% to 20,106.55, in part lifted by embattled Chinese property developer Country Garden, whose shares jumped 17.5% after it got a reprieve on its deadline for working out an agreement with its creditors.
The Shanghai Composite index edged 0.1% lower to 3,242.62.
Tokyo’s Nikkei 225 index gained 0.3% to finish at 39,027.98, while Australia's S&P/ASX 200 gained 0.7% to 8,402.40. South Korea's Kospi slipped less than 0.1% to 2,518.03.
Shares in Fuji Media Holdings, of which major Japanese broadcaster Fuji TV is a part, recouped earlier losses, to finish 2.1% higher. The earlier decline came after dozens of companies, including Toyota Motor Corp., decided to stop airing television commercials that accompany Fuji TV shows. The stock price has zigzagged recently as a sex scandal unfolded, reported by weekly magazine Shukan Bunshun.
Benchmark U.S. crude declined $1.88 to $75.51 a barrel. Brent crude, the international standard, lost $1.30 to $78.85 a barrel.
The dollar rose to 155.82 Japanese yen. The euro cost $1.0355, down from $1.0416.
Bitcoin is down, but trading near all time highs around $104,425, while the new Trump cryptocurrency tumbled 22%. The Trump digital token, priced at $10 each, soared after its launch Friday to as high as $70 on Sunday. It was trading around $37 early Tuesday morning. The website selling the tokens says they are meant as expressions of support and not an investment opportunity.
Credit: AP
Credit: AP
Credit: AP
Credit: AP