Waiting for the Fed; US housing data; Draghi speaks - CNN

The US central bank kicks off its June meeting on Tuesday. Its rate decision and press conference follow on Wednesday.

Investors want a clear signal from Chair Jerome Powell, who said two weeks ago that the Fed would act as appropriate to sustain the economic expansion in the United States.

That triggered a stock rally — though markets are now clamoring for more specifics. Expectations for a rate cut in July are now at 86%, according to the CME's FedWatch tool.

It's clear that central banks are leaning toward looser monetary policy.

European Central Bank President Mario Draghi on Tuesday signaled his willingness to boost monetary stimulus if economic conditions don't improve, causing the euro to fall.

2. Housing data: In the meantime, markets could move on a new batch of data.

US housing starts and building permits will post at 8:30 a.m. ET.

Investors will be watching closely after a surprisingly weak indicator on Monday. The Empire State Manufacturing Survey, which measures how factories in New York view the state of their business, fell much more than expected in June.

Economists expected the New York manufacturing industry to expand. Instead, the decline of the business conditions index was the largest on record, according to the New York Fed.

3. Markets rise: US stock futures point higher. The Dow is set to jump 60 points, or almost 0.2%, when markets open. The Nasdaq could rise 0.5% and the S&P 500 is poised to climb 0.3%.

European markets gained in early trading on the remarks from Draghi. France's CAC 40 leaped 0.9%. Germany's DAX rose 0.5%.

Stocks in Asia finished higher, bar Japan. The Shanghai Composite rose 0.1%, while Hong Kong's Hang Seng gained 0.9%. The Nikkei fell 0.7%.

The Dow closed up 0.1% on Monday. The S&P 500 inched up 0.1%, and the Nasdaq rose 0.6%.

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4. Coming this week:
Tuesday: Adobe earnings; US housing starts; US Senate hearing on tariffs
Wednesday: Fed decision and press conference; earnings from Oracle (ORCL) and Barnes & Noble (BKS)
Thursday: US leading indicators; Bank of England rate decision; earnings from Darden (DRI), Kroger (KR) and Red Hat (RHT)
Friday: US existing home sales; Markit flash US manufacturing PMI

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https://www.cnn.com/2019/06/18/investing/premarket-stocks-trading/index.html

2019-06-18 09:15:00Z
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