Futures slip after
three-day rally as oil dips
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[September 23, 2016]
By Tanya Agrawal
(Reuters) - U.S. stock index futures
were slightly lower on Friday as oil prices came off a two-week
high, a day after the Nasdaq closed at a record high for the second
All three major indexes are poised to end the week higher after the
S&P 500 index notched its best two-day performance in more than two
months on Thursday. The S&P is up 6.5 percent for the year.
Investors have been in risk-on mode again, encouraged by the Federal
Reserve's decision to stand pat on interest rates at a meeting this
Fed Chair Janet Yellen said on Wednesday that U.S. growth was
looking stronger and rate increases would be needed to keep the
economy from overheating and fueling high inflation. But the central
bank maintained the low-interest rate environment that has helped
underpin the bull market for stocks.
The U.S. central bank had hinted that it might raise rates before
the year ends and interest rate futures were pricing in roughly a 60
percent chance of a rate increase by December.
Oil prices fell on Friday, following two sessions of strong rises,
on caution ahead of a gathering of OPEC ministers next week in
Algeria to discuss possible production cooperation to rein in global
Investors will also keep an eye on a number of Fed speakers who are
scheduled to speak at different events for further clues regarding
the timing of the next rate hike.
Fed speakers include Dallas Federal Reserve Bank President Robert
Kaplan, Philadelphia Fed President Patrick Harker, Cleveland Fed
President Loretta Mester and Atlanta Fed President Dennis Lockhart.
Twitter shares were down 4.2 percent at $17.84 in premarket
trading after RBC cut its rating on the stock to "underperform".
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Traders work on the floor of the New York Stock Exchange (NYSE) in
New York City, U.S. September 22, 2016. REUTERS/Brendan McDermid
Yahoo was down 2.4 percent at $43.05, a day after the company said at least 500
million of its accounts were hacked in 2014 in a theft that appeared to be the
world's biggest known cyber breach.
Futures snapshot at 6:58 a.m. ET (1058 GMT):
S&P 500 e-minis were down 3.75 points, or 0.17 percent, with 97,617 contracts
Nasdaq 100 e-minis were down 7.25 points, or 0.15 percent, on volume of 16,097
Dow e-minis were down 20 points, or 0.11 percent, with 13,008 contracts changing
(Reporting by Tanya Agrawal; Editing by Don Sebastian)
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