US stock futures are pointing to a slightly firmer kick-off in New York with continuing oil volatility and Apple expected to be in focus during the session.
CMC Markets analyst Jasper Lawler is looking for the Dow to put on 19 points on opening to 17,795, with the S&P 500 treading water. The tech-heavy Nasdaq is expected toedge five points higher to 4,292.
Apple shares sank a hefty 6% yesterday before staging a recovery to finish the session 3.25% lower at $115.07. There was no news event to drive the shares so much lower.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Lawler reckons Apple's share slide was due to a number of factors, including a tech sector downgrade from Morgan Stanley that also dented sentiment over the likes of Twitter and Facebook.
Another factor that might have helped contribute to Apple's fall is that it goes into another trial today over claims from customers and electronics retailers that it is monopolising digital music markets with iTunes and its iPod devices. The claims could potentially cost the company $1bn if upheld.
According to The Daily Telegraph, the late Steve Jobs is expected to be a key witness in the trial having made a videotaped deposition shortly before his death in 2011.
In pre-market trade Apple shares were up 0.4% to $115.53.
Crude oil will again be another major focus after US oil experienced a rebound yesterday. However, as the Wall Street Journal points out, the consensus remains focused on further falls ahead. In the late morning today, Brent crude for January delivery was down 52 cents at $72.01 a barrel.
CMC's Lawler notes that influential Fed hawks Stanley Fischer and William Dudley have been busy giving a positive spin to the fall in oil prices, saying it will be positive for the US economy. They reckon it will trigger needed lift in consumer spending which has lagged the recovery this year.
The pair also note that the resulting drop in inflation from lower oil prices will only be temporary, implying the Fed is still on track to hike rates by the middle of next year. Their comments could provide further support for a positive start when the market opens.
Elsewhere, car-makers Ford and GM are expected to be active in today's session on the release of US vehiclesales for November.
-
HMRC raises £1.5 billion from special investigations into the wealthy in 2023/24 – how can you protect yourself?The taxman more than doubled the amount it raised from investigations into wealthy individuals year-on-year. How can you make sure you’re not caught out?
-
Resilient and profitable performers will excel in the era of deglobalisationOpinion James Harries, co-manager, STS Global Income & Growth Trust, selects his favourite stocks as he shares where he'd put his money
