US markets look set for a lower open on Wednesday ahead of service sector and unemployment data as well as the release of the Fed’s Beige book, pulling back from a record close in the Dow Jones in the previous session in which energy shares were top risers as oil prices found a base.
Energy shares topped US markets on Tuesday with strong moves in Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) helping the Dow 30 to make a new record closing high as strong vehicle sales helped auto stocks. Oil prices still appear weak and should downside momentum resume then Exxon and Chevron will be a drag on the Dow once more.
International growth concerns are still there but a stabilisation in China’s services PMI which came in just ahead of last month’s figure offered some relief. Investors will be looking to the Fed and their reading of the economic regions of the US for signs of further domestic growth in the beige book report.
Apple Inc (NASDAQ:AAPL) shares closed lower on Tuesday as the year-end gets closer and investors who have sizeable gains on the shares assess the prospects for next year. iPhone sales have beaten most forecasts so far but there is some risk of a slowdown in 2015 and the sales potential for the Apple Watch is still an unknown.
Troubled teen-fashion brand Abercrombie & Fitch Company (NYSE:ANF) report earnings before the open.
Futures suggest the:
S&P 500 will open unchanged at 2,066 with the
Dow Jones expected to open 14 points lower at 17,865 and the
NASDAQ Composite unchanged at 4,305.
CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.