U.S. stock index futures were lower on Thursday morning after President Donald Trump said China "broke the deal" at a rally Wednesday evening, fueling worries the U.S. and China will be unable to hatch a trade agreement before new tariffs go into effect at midnight.
Futures on the Dow Jones Industrial Average fell about 184 points, indicating a negative open of more than 95 points. The S&P 500 and Nasdaq were also set to open lower. The Dow is down about 540 points and the S&P 500 has lost more than 2% this week after Trump threatened to raise tariffs on more Chinese goods over the weekend.
Shares of Intel fell another 2.5% in premarket on Thursday after sinking nearly 5% in the previous session as the chipmaker said it sees both revenue and earnings per share growing in the "single digit" percentage range over the next three years. BMO downgraded the stock to market perform from outperform on Thursday, saying it sees the stock "treading water at best."
"By the way, you see the tariffs we're doing? Because they broke the deal. They broke the deal," Trump said at a rally in Florida Wednesday evening. "So they're flying in, the vice premier tomorrow is flying in — good man — but they broke the deal. They can't do that, so they'll be paying."
China claimed it will retaliate if the higher levies are imposed. However, the Chinese delegation is still in Washington this week to negotiate a deal. Despite Trump's amped-up rhetoric, the White House claimed on Wednesday China still wants to make a deal, which kept the market temporary afloat.
Thursday is "a pivotal day," said Ed Mills, public policy analyst at Raymond James, in a note. "We believe Chinese officials will be looking to delay Friday's tariff increase in order to continue conversations as to the appropriate level of commitments in key areas. However, the market reaction over the last couple days gives Trump some leeway to maintain an aggressive tone."
Traders will also keep an eye on upcoming data releases. There will be international trade figures, weekly jobless claims, and producer price index numbers out at 8.30 a.m. ET.
In terms of earnings, Softbank, Norwegian Cruise Line, Booking Holdings, Dropbox, and News Corp. will be updating investors throughout the day.
— CNBC's Silvia Amaro contributed to this report.
https://www.cnbc.com/2019/05/09/stock-market-us-china-trade-tensions-continue.html
2019-05-09 10:58:58Z
52780288831813
Tidak ada komentar:
Posting Komentar