Fundamental analysis
11 January, 2019
Research Department
U.S. futures traded lower on Friday, after rallying for four days as revenue forecast cuts from a number of companies and weak retail sales over the holidays threatened to derail Wall Street's five-day rally as investors fear a possible recession. Stocks had risen earlier this week on indications that the Fed could pause its stance on policy tightening and optimistic trade negotiations from the U.S. and China. But cuts in revenue forecasts from Apple and American Airlines, among others, could wipe out earlier gains. Meanwhile the government shutdown has become the longest in history and 800,000 Federal workers will miss their first paycheque of the year. U.S. President Donald Trump is at a standstill with Democrats over the shutdown, as he insists that the budget must include funding to build a wall on the U.S.-Mexico border.
