Wall Street Focuses on Comey, ECB, UK Polls

By Investors Hub

The major U.S. index futures are pointing to a roughly flat opening on Thursday, as traders focus on several key events scheduled on the day. Traders are digesting the European Central Bank’s latest monetary policy announcement and comments by ECB President Mario Draghi.

Shortly after the start of trading, former FBI Director James Comey is scheduled to begin his testimony before the Senate Intelligence Committee.

With Comey’s prepared remarks already released, traders are likely to keep an eye on the question-and-answer portion of his testimony.

The general election in the U.K. is also likely to attract attention, although the results will not be known until after the markets close.

Stocks showed a lack of direction over the course of the trading session on Wednesday but managed to end the day modestly higher. The higher close on the day came on the heels of the pullback seen over the two previous sessions.

The major averages closed in positive territory but still off the record highs set last Friday. The Dow rose 37.46 points or 0.2 percent to 21,173.69, the Nasdaq climbed 22.32 points or 0.4 percent to 6,297.38 and the S&P 500 edged up 3.81 points or 0.2 percent to 2,433.14.

Traders seemed reluctant to make more significant moves ahead of several potentially market-moving events on both sides of the Atlantic.

Former FBI Director James Comey’s testimony before the Senate Intelligence Committee is likely to be in the spotlight today.

Comey’s prepared statement released by the committee appears to confirm some recent reports about his interactions with President Donald Trump, including the president’s request for loyalty.

In the statement, Comey notes that Trump told him, “I need loyalty, I expect loyalty” during a dinner at the White House in January.

Comey also seems to confirm reports that Trump wanted him to drop an investigation of former National Security Adviser Michael Flynn’s contact with Russian officials.

A day before Comey is due to testify, Trump announced on Twitter that he intends to nominate former Justice Department official Christopher Wray as the new FBI Director.

Airline stocks showed a strong move to the upside over the course of the trading session, driving the NYSE Arca Airline Index up by 1.6 percent. With the gain, the index reached its best closing level in over fifteen years.

Hawaiian Airlines parent Hawaiian Holdings (HA) posted a substantial gain after raising its expectations for growth in second quarter operating revenue per available seat mile.

Significant strength was also visible among banking and trucking stocks, with the Dow Jones Banks Index and the Dow Jones Trucking Index climbing by 1.1 percent and 1 percent, respectively.

On the other hand, energy stocks saw substantial weakness amid a steep drop by the price of crude oil. Reflecting the weakness in the energy sector, the Philadelphia Oil Service Index plummeted by 4.5 percent, the NYSE Natural Gas Index tumbled by 3.2 percent and the NYSE Arca Oil & Gas Index slumped by 1.7 percent.