2-7-18 5:58 AM EST | Email Article

By Victor Reklaitis, MarketWatch

European stocks rise, while some gains fail to stick for Asian markets

U.S. stock futures fell Wednesday, setting up the Dow to resume its recent slump a day after it rallied.

The stock market is struggling to stabilize after heavy selling on Friday and Monday, and after a wild day of trading Tuesday. Analysts have pinned the drop in part on rising bond yields amid signs of inflation, as they also note that equities were due for a pullback after scoring big gains in January and throughout 2017.

Check out:Why the Dow has suddenly become a hot mess (http://www.marketwatch.com/story/why-the-stock-market-has-suddenly-become-a-hot-mess-2018-02-06)

What are the main benchmarks doing?

Dow Jones Industrial Average futures dropped by 192 points, or 0.8%, to 24,608, while S&P 500 futures shed 43 points, or 0.8%, to 2,672.50. Nasdaq-100 futures lost 43 points, or 0.7%, to 6,610.75.

On Tuesday, the Dow jumped by 567 points, or 2.3%, for its biggest percentage gain in two years (http://www.marketwatch.com/story/dow-futures-swing-wildly-in-battle-to-recover-from-historic-selloff-2018-02-06), making up lost ground after falling by 567 points at the open. But the blue-chip gauge still stands 6.4% below last month's record close after tumbling on Friday and Monday.

The S&P 500 closed 1.7% higher on Tuesday, while the Nasdaq Composite gained 2.1%.

Read:50-year Wall Street veteran says this sure feels like a stock-market bottom (http://www.marketwatch.com/story/50-year-wall-street-veteran-this-sure-feels-like-a-stock-market-bottom-2018-02-06)

And see:Here's how U.S. stocks typically perform in the aftermath of a major rout (http://www.marketwatch.com/story/heres-how-the-stock-market-typically-performs-in-the-aftermath-of-a-major-rout-2018-02-06)

What are other assets doing?

European stocks traded modestly higher (http://www.marketwatch.com/story/european-stocks-snap-7-day-selling-spree-after-wall-street-rebound-2018-02-07), while Asian markets finished mixed (http://www.marketwatch.com/story/asian-markets-shoot-higher-following-wall-streets-rebound-2018-02-06) after earlier gains faded. Gold futures and the ICE U.S. Dollar Index edged up, while oil futures were slightly lower.

What are strategists saying?

"Certainly there is a risk that yesterday's rally is a fake-out before another selloff," said Neil Wilson, senior market analyst at ETX Capital, in a note Wednesday.

What could help drive markets?

Political worries might pressure the market somewhat, as a partial shutdown of the federal government lies ahead if lawmakers don't agree on spending measures by midnight Thursday.

But the House passed a temporary bill late Tuesday (http://www.marketwatch.com/story/house-passes-temporary-spending-bill-to-avoid-shutdown-2018-02-06), and Senate Majority Leader Mitch McConnell, R-Ky., said he's "optimistic that very soon we'll be able to reach an agreement." A brief partial shutdown last month didn't weigh on the market that much (http://www.marketwatch.com/story/dow-futures-retreat-as-government-shutdown-stretches-into-3rd-day-2018-01-22).

There are no top-tier economic reports expected on Wednesday, but three Federal Reserve officials are slated to make remarks. New York Fed President William Dudley is taking part in a panel discussion on banking culture at 8:30 a.m. Eastern Time, Chicago Fed President Charles Evans is giving a speech to bankers in Iowa at 11:15 a.m. Eastern, and San Francisco Fed President John Williams is talking to community leaders in Hawaii at 5:20 p.m. Eastern.

Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)

Which stocks look like key movers?

Shares in Snap Inc.(SNAP)surged 23% in premarket action after the parent for messaging app Snapchat posted better-than-expected quarterly results (http://www.marketwatch.com/story/snap-stock-surges-nearly-30-after-sales-and-earnings-beat-2018-02-06) late Tuesday.

See: A year after IPO, Snap shows progress but still has many issues (http://www.marketwatch.com/story/a-year-after-ipo-snap-shows-progress-but-still-has-many-issues-2018-02-06)

Walt Disney Co.'s stock (DIS)was modestly higher in thin premarket trading after the entertainment giant reported stronger-than-anticipated earnings (http://www.marketwatch.com/story/disney-beats-on-earnings-stock-gains-slightly-2018-02-06) late Tuesday, while Chipotle Mexican Grill Inc.(CMG)looked on track for a down day after the burrito chain's profit topped views, while revenue met expectations (http://www.marketwatch.com/story/chipotle-beats-q4-expectations-as-even-avocado-prices-helped-2018-02-06).

See:With Fox merger and ESPN streaming effort, Disney has a confusing mess (http://www.marketwatch.com/story/with-fox-merger-and-espn-streaming-effort-disney-has-confusing-mess-to-sort-out-2018-02-06)

Wynn Resorts Ltd.'s stock (WYNN)fell 2% premarket after Steve Wynn resigned late Tuesday (http://www.marketwatch.com/story/steve-wynn-resigns-as-ceo-of-wynn-resorts-2018-02-06) as chief executive and chairman following allegations last month of sexual misconduct.

Shares in Tesla Inc.(TSLA)could see active trading as the maker of electric cars is scheduled to post earnings after the bell. On Tuesday, a Tesla Roadster was launched into space (http://www.marketwatch.com/story/check-out-this-view-as-a-tesla-roadster-hurtles-through-space-2018-02-06)as a dummy payload and publicity stunt.

See:SpaceX successfully launches massive Falcon Heavy rocket (http://www.marketwatch.com/story/spacex-successfully-launches-massive-falcon-heavy-rocket-after-years-of-anticipation-2018-02-06)

And read:7 big worries that could hammer Tesla's stock price (http://www.marketwatch.com/story/7-big-worries-that-could-hammer-teslas-stock-price-2018-02-07)

Shares in toy maker Hasbro Inc.(HAS)and fashion house Michael Kors Holdings Ltd.(KORS)may also be active, as the companies are among those due to post earnings before the open.

Media company Tronc Inc.(TRNC)could make moves following news it's in advanced talks to sell the Los Angeles Times (http://www.marketwatch.com/story/tronc-in-talks-to-sell-los-angeles-times-to-investor-for-500-million-2018-02-06) to billionaire Patrick Soon-Shiong for around $500 million.


(END) Dow Jones Newswires

February 07, 2018 05:58 ET (10:58 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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