By Barbara Kollmeyer, MarketWatch
Durable goods, Markit PMI survey ahead
U.S. stocks looked set to push higher Friday, but were still on
track for their worst weekly performance in months, as concerns
grew that President Donald Trump's ability to push through his
reforms could be waning.
Dow Jones Industrial Average futures rose 37 points, or 0.2%, to
20,626 on Friday, while S&P 500 futures added 3.25 points to
2,343.25. Nasdaq-100 futures gained 10.5 points, or 0.2%, to
5,365.
Voting on a key health care bill, meant to replace the
Affordable Care Act, is scheduled for Friday. It was postponed from
Thursday night after its Republican backers failed to win over the
bill's opponents within their own party.
"Market participants may begin to doubt whether Trump will be
able to deliver the tax numbers he has pledged, considering that
repealing the health care act is one of the conditions for making
that feasible," IronFX analysts Marios Hadjikyriacos and
Charalambos Pissouros told clients in a note.
Read:Here's what the health-care vote means for financial
markets
(http://www.marketwatch.com/story/what-traders-are-watching-as-health-care-vote-looms-2017-03-23)
The DJIA logged a moderate, but sixth-straight decline on
Thursday
(http://www.marketwatch.com/story/wall-street-stocks-lined-up-for-cautious-moves-ahead-of-yellen-speech-health-care-vote-2017-03-23)
after House Republican leaders delayed the health care vote. The
index is now in its longest-running losing streak since Nov. 4. The
S&P 500 and Nasdaq Composite indexes also finished the day with
moderate losses.
As of Thursday's close, the S&P 500 and Dow industrials were
facing their worst weekly losses -- 1.36% and 1.2%, respectively --
since the week of Nov. 4. The Nasdaq Composite has logged a 1.4%
decline so far, setting it up for the worst loss since the week of
Dec. 30.
But stock futures are clinging onto small gains at the open,
which some analysts are crediting to Trump playing hardball on the
health care vote.
"In a shock-and-awe move, at least for us, President Trump
raised the stakes by declaring that should the bill get voted down
today, he is prepared to leave Obamacare in place and move on to
tax reform," Hadjikyriacos and Pissouros said.
Read:Trump's ultimatum -- pass health bill now or live with
Obamacare
(http://www.marketwatch.com/story/trump-ultimatum-pass-health-bill-now-or-live-with-obamacare-2017-03-23)
The analysts said this sends a positive message to markets that
tax reform is a priority for the administration, and that it is
ready to move on quickly with that.
Economic data may provide a distraction for markets, with a
reading on durable-goods orders due ahead of the open.
"By all accounts, that health care vote in Congress will be the
bigger driver of sentiment today, but any notable shortfall here
could knock confidence in U.S. equity indices," Tony Cross, market
analyst for TopTradr, told clients in a note.
Economic docket: A reading on durable goods orders for February
is due at 8:30 a.m. Eastern Time, as is an update on core capital
equipment orders for the same month.
Markit's preliminary readings on its manufacturing and services
purchasing managers' indexes for March are expected to come at 9:45
a.m. Eastern.
As for Federal Reserve speakers, St. Louis Fed President James
Bullard will give a speech on economy and monetary policy at the
Economic Club of Memphis at 9:05 a.m. Eastern. New York Fed
President William Dudley will speak at a fireside chat at the York
College, City University of New York with questions from the
audience starting at 10 a.m. Eastern Time.
Late Thursday, Dallas Federal Reserve President Robert Kaplan
said
(http://www.marketwatch.com/story/feds-kaplan-wants-gradual-rate-hikes-but-doesnt-expect-pause-in-policy-track-2017-03-23)
he wants a "gradual and patient" approach to raising interest rates
this year but that that doesn't necessarily include a "pause" in
the Fed's rate-tightening policy.
Stocks to watch: Shares of Micron Technology Inc.(MU) jumped 12%
in premarket after guidance for the current quarter blew past
analysts estimates late Thursday.
Read:Micron profits from memory shortage, expects party to
continue
(http://www.marketwatch.com/story/micron-profits-from-memory-price-spike-expects-party-to-continue-2017-03-23)
GamesStop Corp.(GME) shares took a hit late Thursday after the
videogame retail chain said it would close at least 150 stores
(http://www.marketwatch.com/story/gamestop-to-shut-at-least-150-stores-shares-sink-2017-03-23).
SeaWorld Entertainment Inc.(SEAS) said Friday it will sell a 21%
stake held by affiliates of Blackstone Group L.P
(http://www.marketwatch.com/story/blackstone-to-sell-its-seaworld-stake-to-chinas-zhonghong-at-a-33-premium-to-market-prices-2017-03-24).(BX)
to a unit of China's Zhonghong Zhuoye Group Co. Ltd. for $23 a
share, a 33% premium to Thursday's closing price of $17.31.
Other markets: Several Asian stock markets
(http://www.marketwatch.com/story/asia-pacific-markets-pick-up-speed-despite-delay-on-us-health-care-bill-2017-03-23)
gained amid cautious optimism ahead of the final health care vote.
European stock markets were sagging, with the FTSE 100 set for the
worst week since January.
The dollar firmed up against the yen, but eased against the
euro. The shared European currency jumped after eurozone flash PMIs
beat forecasts. Oil prices rose, while gold eased.
(END) Dow Jones Newswires
March 24, 2017 07:16 ET (11:16 GMT)
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