US STOCKS-Wall St to open lower on trade deal doubt, bond market nerves
Wall Street rallied on Monday on news that U.S. President Donald Trump and Chinese President Xi Jinping had agreed to hold off on new tariffs for 90 days, offering relief to a market that has been clouded for much of the year by the prospect of an all-out trade war.
However, different dates from the White House regarding start of the three-month trade ceasefire and skepticism over an actual resolution in the agreed negotiating window dampened the mood.
Traders were questioning the recent trade agreement as "it isn't very clear on what both sides agreed to, other than just a temporary truce," Scott Brown, chief economist at Raymond James in St. Petersburg, Florida said.
Investors typically demand higher yields to commit money for longer periods of time. When short-term yields move higher it can imply doubts about the immediate future, and an inversion of the yield curve has preceded past recessions.
At 8:37 a.m. ET, the Dow and Nasdaq futures were down about 0.4 percent each.
Apple Inc dropped 2 percent in premarket trading, after leading the rally on Monday. One of the company's suppliers Cirrus Logic Inc trimmed its revenue outlook, adding to growing evidence that the latest iPhones are not selling well.
Dollar General Corp fell 5.4 percent after lowering its full-year profit and sales forecast, hit by higher costs related to hurricanes.
Toll Brothers Inc dropped 3.1 percent after the luxury home builder reported its first fall in quarterly orders in more than four years on rising interest rates and higher home prices.
Among the few bright spots were energy companies whose shares rose as crude prices increased more than 2 percent, extending gains ahead of expected output cuts by OPEC and a mandated reduction in Canadian supply. (Reporting by Shreyashi Sanyal in Bengaluru; Additional reporting by Sruthi Shankar; Editing by Shounak Dasgupta)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)