Left Menu
Development News Edition

US STOCKS-Wall St set to dip at open on tariff fears

Trump's comments on tariffs, which followed the United States and China imposed tariffs on $34 billion worth of each other's goods this month, worried investors already grappling with the impact of a strengthening dollar on corporate results.


US STOCKS-Wall St set to dip at open on tariff fears
Microsoft rose 3.4 percent after its quarterly results topped estimates on strong performance of its Azure cloud computing business. (Image Credit: Twitter)

U.S. stocks were set to open lower on Thursday as strong earnings, including from Microsoft, failed to ease fears of a trade war after President Donald Trump said he was ready to impose tariffs on $500 billion worth of Chinese imports.

Trump's comments on tariffs, which followed the United States and China imposed tariffs on $34 billion worth of each other's goods this month, worried investors already grappling with the impact of a strengthening dollar on corporate results.

The latest round of U.S. tariffs on $200 billion worth of Chinese goods, held up for now by a formal public comment period, could impact Apple Inc's watches, several Fitbit activity trackers and connected speakers from Sonos.

"The market does tend react whenever there is a statement on tariffs," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

"The market was weak yesterday and often times in the absence of news to swing it to the other direction, you'll get a little bit of follow through."

However, after sliding early in the session, stock futures have steadily pared losses as strong quarterly reports from Microsoft as well as industrial conglomerates General Electric and Honeywell helped shift focus back to the earnings season.

Microsoft rose 3.4 percent after its quarterly results topped estimates on strong performance of its Azure cloud computing business.

GE was up 0.1 percent after its quarterly profit fell less than expected profit as weakness in power and renewables energy offset gains in its aviation, oil and gas and healthcare units.

Honeywell gained 2.7 percent after its neat quarterly profit estimates and raised its forecast on strong sales of aircraft parts and services.

As the second-quarter reporting period gains momentum, analysts forecast have risen as more companies top profit expectations.

Earnings at S&P 500 companies are forecast to have risen 21.5 percent, compared with the 20.7 percent gain seen on July 1, according to Thomson Reuters I/B/E/S.

At 8:57 a.m. ET, Dow e-minis were down 131 points, or 0.52 percent. S&P 500 e-minis were down 8.5 points, or 0.30 percent and Nasdaq 100 e-minis were up 2.25 points, or 0.03 percent.

However, not all results were rosy.

Skechers USA plunged 27.4 percent after the shoemaker posted disappointing quarterly results and forecast.

On the other hand, VF Corp rose 3.7 percent after the Vans sneaker maker reported robust quarterly results and raised its forecast.

State Street dropped 5.6 percent after the U.S. custodian bank said it would buy Charles River Development for $2.6 billion in cash and fund the deal by suspending shares buybacks and issuing new equity.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION/BLOG/INTERVIEW

Future of Food: Technology fostering the road to global food security

Technological innovation can help address most of the pressing issues facing the world today including food security by enhancing productivity, improving financial services, managing resources, addressing environmental concerns, etc....

Conspiracy theories on COVID 19: Legislators, Scientists, and Journalists all joined the Caravan

Conspiracy theories are not new for virus epidemics. There have been conspiracy theories on HIV-AIDS, Polio Vaccines, Ebola Virus, and several other diseases as well. However, what makes the 2019 Novel Coronavirus different from others is ...

Now it’s a war, Uganda deploys army to combat locust swarms

Its for the first time after 1986, the locust swarms have attacked Uganda twice in a season. With the increasing number of countries of Africa under attack by locust swarms, the problem seems to have taken a regional paradigm. Its very diff...

Top 10 Fake News, Myths and Realities on 2019 Novel Coronavirus COVID 19

With nearly 1500 deaths by January 14 and around 65,000 infections in China, the Novel Coronavirus 2019 has become one of the worst health epidemics of the 21st Century. However, 8,573 people have been cured but the rumor mongers are a...

Videos

Latest News

Netanyahu says will press ahead with E-1 settlement project in West Bank

Israeli Prime Minister Benjamin Netanyahu said on Tuesday he was moving forward with a plan to build some 3,500 homes for Jewish settlers on the outskirts of Jerusalem, a project that had been frozen after international criticism.I have giv...

Belarus to allocate ten educational grants for nationals of Egypt

The Government of the Republic of Belarus has decided to allocate ten educational grants for the nationals of the Arab Republic of Egypt to study at the higher educational institutions of the Republic of Belarus in the academic year 2021202...

Iran urges citizens to stay at home as coronavirus spreads - TV

As the death toll of those infected by the new coronavirus reached 16, Irans health ministry on Tuesday urged Iranians to stay at home, a ministry spokesman told state TV. It will be safer for people to stay at home. There were 34 new confi...

Red Cross seeks safe passage of civilians and access in Idlib, Syria

The International Committee of the Red Cross ICRC called on the warring sides in Idlib, Syria on Tuesday to allow safe passage for civilians to escape attacks and reminded them that hospitals, markets and schools are protected by law.We are...

Give Feedback