Stocks moderately impacted after Saudi oil attack
Bulltick Capital Markets’ Kathryn Rooney Vera discusses why the U.S. should not be overly concerned over the recent oil explosion. Vera says other foreign actors, such as China, will be affected to a much greater degree.
U.S. stocks are pointing to a lower open, adding to the declines that stocks suffered to start the week.
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Dow Industrial and S&P 500 futures are lower by 0.1 percent, while Nasdaq futures are off by 0.3 percent.
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An attack on Saudi Arabia’s biggest oil processing plant caused crude prices to soar, prompting selling of airlines and other fuel-dependent industries.
The U.S. and international benchmarks for crude fell back slightly after vaulting more than 14 percent on Monday.
On Wall Street, the Dow Jones Industrial Average fell 0.5 percent, breaking a streak of eight consecutive gains. The S&P 500 lost 0.3 percent, its biggest decline in two weeks. The Nasdaq lost 0.3 percent.
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| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 27076.82 | -142.70 | -0.52% |
| SP500 | n.a. | n.a. | n.a. | n.a. |
| I:COMP | n.a. | n.a. | n.a. | n.a. |
General Motors slumped 4.3 percent after more than 49,000 members of the United Auto Workers went on strike. It wasn’t clear how long the walkout would last.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| GM | n.a. | 37.21 | -1.65 | -4.25% |
The week’s headline event is the Federal Reserve’s meeting on interest rates. Investors are confident the central bank will cut short-term rates by a quarter of a percentage point to a range of 1.75 percent to 2 percent.
It would be the second such cut in two months, as the Fed tries to protect the economy from a global slowdown and the effects of the U.S.-China trade war.
The meeting begins Tuesday and concludes with the rate decision on Wednesday.
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Japan’s Nikkei ended the day up 0.1 percent for a tenth straight day of gains. The Shanghai Composite index closed down 1.7 percent. Hong Kong’s Hang Seng slipped 1 percent after the credit ratings agency Moody’s downgraded the city. Fitch Rating did so earlier. Hong Kong’s chief executive, Carrie Lam, said the downgrade was “disappointing.”
In European trading, London’s FTSE added 0.3 percent, Germany’s DAX slipped 0.2 percent and France’s CAC gained 0.2 percent.
The Associated Press contributed to this article.
