Stocks- U.S. Futures Pull Back as Trump Toughens Stance on China Trade Deal
U.S. futures broke their winning streak on Wednesday, as investors turned their focus back to trade wars and their impact on the economy, after President Donald Trump reiterated his opposition to a deal with China at the present time.
Trump told reporters Tuesday that he had no interest in moving ahead with a trade deal with China unless they agree to five “major points,” although he didn't specify which major points he was referring to. He once again accused China of reneging on previous commitments - something that Beijing has denied.
His comments appear to reduce chance of any de-escalation of the dispute between the two countries at the G20 summit meeting at the end of month.
Dow futures fell 62 points or 0.2% by 6:40AM ET (10:40 GMT), while tech-heavy Nasdaq 100 futures lost 32 points or 0.4% and S&P 500 futures was down 7 points or 0.3%.
Tesla (NASDAQ:TSLA) was among the top gainers in premarket trading, rising 2.5% after CEO Elon Musk told shareholders at their annual meeting that the company could have a “record quarter on every level.”
British American Tobacco (NYSE:BTI) fell 4.3% after it said sales of its cigarettes, which include Lucky Strike and Dunhill, would fall some 3.5% this year, something unlikely to be compensated even by strong growth in its vaping and e-cigarette products.
Medidata Solutions (NASDAQ:MDSO) slumped 4.4% after French tech giant Dassault Systemes (PA:DAST) said it would pay $92.25 a share for the company, a little below prior speculation. The deal values Medidata at $5.8 billion.
On the data front, Consumer Price Index (CPI) data is released at 8:30 AM ET (12:30 GMT).
Lululemon Athletica (NASDAQ:LULU), Oxford Industries (NYSE:OXM), and Tailored Brands (NYSE:TLRD) are among some of the companies releasing their quarterly results after the market close on Wednesday.
In commodities, crude oil slumped 2.6% to $51.88 a barrel over concerns of a global supply glut, while gold futures rose 0.6% to $1,339.25 a troy ounce. The U.S. dollar index, which measures the greenback against a basket of six major currencies, was flat at 96.657.