US Futures in correction after a 4 day rally

Wall St



Futures point a negative trajectory after the stable rally from the beginning of the week. S & P 500 is down 0.51%, Dow with 0.38% red and Nasdaq is 0.66% in negative territory.

The government is partially closed on the 20th day without any obvious signs of change. President Trump quickly ended the meeting with Senate spokeswoman Nancy Pelosi and lower ducal leader Chuck Schumer with the sentence "total waste of time" after, as Pelosi stood in opposition to the Trump funding required for a wall with Mexico.

The correction is quite normal in the absence of information about US-China talks, as well as several negative reports from the retail sector:

The Kohl`s Corp (KSS.US) is 5.2% red, Target Corp (TGT.US) will be trading at 1.5%, Peers Macy`s (M.US) down 1.7%, Nordsrorm JWN.US) opens with a 2% loss and Wallmart (WMT.US) is down 0.4%. The whole decline in the sector is mainly due to weak sales in November and December.

The only winner in the retail sector is Bed Bath & Beyond (BBBY.US) with a 14.6% growth after the company showed a better-than-expected report and will surely surpass expectations for 4Q.

The previous rally was based on the hopes surrounding the Trade Deal, the strong Jobs data, and the Fed's indications that they were not in a hurry with rising rates. In the report of the last FOMC meeting it became clear that the directors would be patient.

Investors will see continued compliance with dovish ties by J. Powell in his speech to the Economic Club of Washington at 19:00.

 Trader Aleksandar Kumanov

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