LIVE MARKETS U.S.-Reasons to arm portfolios with defense stocks

* S&P, Nasdaq lower, Dow edges up
* Tech falls, most S&P sectors drop
* Financials lead gainers followed by energy

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REASONS TO ARM PORTFOLIOS WITH DEFENSE STOCKS (1032 EDT/1432
GMT)
The recent attacks on Saudi Arabia's oil facilities boosted
energy stocks, but also are poised to support another group,
according to BCA Research: shares of U.S. defense contractors,
which have already had a strong 2019.
The global arms race stands to escalate, according to BCA,
not only from any retaliatory measures from Saudi Arabia or the
United States, but also from Saudi Arabia’s bolstering of air
defense missiles to deter future drone attacks.
"The brewing Middle East tensions are likely to escalate
further, boosting the geopolitical risk premia being built into
asset markets," BCA U.S. equity strategist Anastasios Avgeriou
writes in a note.
BCA calls pure-play defense stocks "must-haves" in U.S. and
global equity portfolios. Aside from global rearmament, BCA sees
the global space race and cybersecurity threats supporting
defense shares.
Defense stocks have posted strong returns already this year.
The S&P 500 aerospace and defense group had gained
32.5% year-to-date as of Thursday, with Lockheed Martin
and Northrop Grumman both rising over 50%.


(Lewis Krauskopf)
*****

U.S. STOCKS INCH HIGHER WITH BOOST FROM FINANCIALS (949
EDT/1349 GMT)
The S&P 500 and the Dow were trading slightly higher on
Friday with the biggest boost from financial stocks after Wells
Fargo named a new chief executive, removing an overhang
for that stock.
Countering positive sentiment were data showing U.S.
consumer spending barely rose in August and business investment
remained weak, suggesting the economy was losing momentum as
trade tensions lingered.
The technology sector declined with the biggest drag from
Micron Technology, after the chipmaker forecast a fiscal
first-quarter profit below Wall Street targets, saying it was
"mindful" of economic and trade uncertainty even though there
were signs of an uptick in memory chip demand.
The S&P was on track to register its second weekly decline
in a row after a week that was marked by volatile trading as
Democrats opened a presidential impeachment inquiry and a
whistleblower complaint was released, while the U.S.-China trade
war rumbled on.
On the positive side, China's top diplomat had said on
Thursday that China was willing to buy more U.S. products, and
said trade talks would yield results if both sides "take more
enthusiastic measures" to show goodwill and reduce "pessimistic
language" in their trade dispute.
Here is your opening snapshot:




(Sinéad Carew)
*****

S&P 500 FUTURES: ABOUT TO BE SWEPT DOWN OR RESCUED? (0902
EDT/1302 GMT)
CME E-Mini S&P 500 futures are still trapped in a
downwardly sloped channel on the hourly charts. And
with the recovery off Thursday's low putting them back up toward
the upper boundary of the pattern, shorter-term action may
indicate whether they are poised to roll over or break out to
the upside. (Click on chart below)
Indeed, the futures hit an overnight high of 2,993 which was
just shy of the channel resistance line, which is now at about
2,993.5, and the 200-hour moving average, which is now at about
2,994, and Thursday's intraday high of 2,995. They have so far
dipped slightly.
Minor support is at 2,981.50, and a break below 2,971.50 may
lead to increased pressure. A violation of 2,964.25 can then
clear the way down for a test of Wednesday's low at 2,953.75 and
the 50-day moving average (now at about 2,951.70).
Conversely, a thrust above 2,995, confirmed by the hourly
close, can take out resistance, and suggest an upward breakout
is developing. In that event, the futures will have potential to
ultimately challenge, and exceed, their 3,031.75 July high.



(Terence Gabriel)
*****