U.S. stock index futures were lower on Thursday morning after President Donald Trump said China “broke the deal” in trade talks as the new tariffs loom.
Futures on the Dow Jones Industrial Average fell about 167 points, indicating a negative open of more than 78 points. The S&P 500 and Nasdaq were also set to open lower.
Shares of Intel fell another 2% 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 shares “treading water at best.”
The market closed Wednesday little changed, struggling to rebound from a deep sell-off earlier this week. Trump fueled market concerns by stating that China “broke the deal” in their ongoing trade talks.
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“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.”
The Dow has fallen nearly 540 points since Trump threatened to raise tariffs on Chinese goods as soon as Friday. China claimed it will retaliate if the higher levies are imposed. However, the Chinese delegation is still coming to Washington this week to strike a deal, the U.S. administration confirmed, which kept the market afloat on Wednesday.
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.
Source: cnbc.com | Original Link