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Top 5 Things to Know in The Market on Monday

Investing.com - Here are the top five things you need to know in financial markets on Monday, January 28: 1. Trump

Investing.com - Here are the top five things you need to know in financial markets on Monday, January 28:

1. Trump Skeptic on Border Wall Deal

U.S. President Donald Trump said another government shutdown is "certainly an option" as he expressed skepticism that Congress would reach a deal to fund a wall on the southern border with Mexico he has requested.

In an interview with the Wall Street Journal on Sunday, Trump said there is a less than 50% chance such a deal could be reached before the next government funding lapse on Feb. 15, which is less than three weeks away.

His comments followed a bill on Friday to end a 35-day partial shutdown of the U.S. government, which was the longest in history.

Building a wall along the border with Mexico to keep migrants from entering the country illegally was a central plank of Trump's presidential campaign, but Democrats are vehemently opposed and have rejected his funding request of $5.7 billion.

2. U.S. Futures Point to Shaky Open

U.S. stock futures pointed to a lower open at the start of what is expected to be an eventful trading week, as investors weighed the prospect of another government shutdown, while awaiting the Federal Reserve's latest policy decision as well as a new round of U.S.-China trade talks and a key Brexit vote.

At 5:25AM ET (10:25 GMT), the blue-chip Dow futures were down 106 points, or about 0.45%, the S&P 500 futures shed 12 points, or around 0.4%, while the tech-heavy Nasdaq 100 futures indicated a drop of 33 points, or roughly 0.5%.

Elsewhere, European stocks were lower, with most major bourses across the region in negative territory.

Earlier, markets in Asia closed mixed.

3. Caterpillar Kicks Off Busy Week of Earnings

About a quarter of the S&P 500 and nearly half the Dow stocks report earnings in the week ahead, as the fourth-quarter earnings season gathers pace.

Monday sees Caterpillar (NYSE:CAT) post results in the morning. The industrial giant, often seen as a bellwether for the global economy, is expected to report adjusted earnings per share of $2.98 on revenue of $14.3 billion, according to estimates.

Results from Whirlpool (NYSE:WHR) and AK Steel (NYSE:AKS) are due after the close.

4. Oil Prices Slump

In commodities, oil prices were on the backfoot after data showed that U.S. energy firms added rigs for the first time this year.

In a sign that output could rise further, Baker Hughes reported Friday that the number of domestic rigs drilling for oil rose by 10 to 862 in the week to Jan. 25.

U.S. West Texas Intermediate crude futures were down $1.06, or about 2%, at $52.63 a barrel.

International Brent crude oil futures were at $60.45 per barrel, down $1.14, or around 1.8%.

Venezuela is likely to stay in the headlines this week, as turmoil in Caracas triggered concerns that its crude exports could soon be disrupted.

Read more: Commodities Week Ahead: Venezuela Crisis Gives Oil New Floor: Barani Krishnan

5. China Industrial Profits Shrink Again

Earnings at China's industrial firms shrank for a second straight month in December, the latest sign of further cooling in the world’s second-largest economy.

Profits of big industrial companies fell 1.9% on year to 680.83 billion yuan ($100.94 billion) in December, the National Bureau of Statistics said, as faltering domestic demand and bruising U.S. tariffs weighed.

The downbeat data points to more troubles ahead for the country's vast manufacturing sector already struggling with a decline in orders, job layoffs and factory closures as China's economic growth slows to its weakest in nearly three decades.

-- Reuters contributed to this report