Dow Futures Pop After Vicious Rout Friday
Dow Futures Pop After Vicious Rout Friday President Trump continued his attack on China's trade policies this weekend, even though he tried to disguise it with a minor compliment. "President Xi and I will always be friends, no matter what happens with our dispute on trade," Trump tweeted on Sunday. "China will take down its Trade Barriers because it is the right thing to do. Taxes will become Reciprocal & a deal will be made on Intellectual Property. Great future for both countries!"Find the more stock market news from SHINE. Dow futures popped 74 points as of 8:09 p.m. ET Sunday. S&P 500 futures rose nine points.
The comments by Trump are poised to add further gas to a bull market already going up in flames. On Friday, the Dow shed 2.35% to move into correction territory with a more than 550-point loss. It was the worst day in two weeks for the blue-chip index. The S&P 500 fell 2.2% and the Nasdaq Composite handed over 2.28%. Losses were amplified in late-session trading after Federal Reserve Chairman Jerome Powell said that the Fed is intent on continuing its trajectory of gradual rate hikes. Not helping sentiment was the President saying investors might have to endure some "pain" as the trade battle with China endures.
Take a step back from the day to day headline grind, and one gets the sense of a meandering stock market. With the bad macroeconomic news clearly starting to pile up and first-quarter earnings season still a few weeks away, the market could decide it deserves to be lower rather than higher. The Dow Jones Industrial Average has stayed below its 100-day moving average since dropping below it on Mar. 21. It now appears dead-set to test the 200-day moving average at 23,478, which is only about 1.9% away. Facebook (FB) bulls, this week will bring a make or break moment for the stock as CEO Mark Zuckerberg prepares to get grilled in front of lawmakers about Cambridge Analytica and privacy.
Zuckerberg is scheduled to appear in a rare joint hearing of the Senate Judiciary and Commerce Committees on Apr. 10. He will then testify at the House Energy and Commerce Committee the following day. Zuckerberg and Facebook number two executive Sheryl Sandberg have made the media rounds over the past week, admitting they got several things wrong. Facebook shares have rallied about 3% from their Mar. 27 low despite Sandberg noting some advertisers have pulled back.As TheStreet discusses on its latest "Technically Speaking" podcast below, both Zuckerberg and Sandberg might have been too busy promoting their personal brands the last few years instead of running Facebook. In turn, that may have left them disconnected from the inner workings of the social media giant.