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Stocks- U.S. Futures Fall as Chinese Media Turns Hostile on Trade

Published 05/17/2019, 06:41 AM
Updated 05/17/2019, 06:41 AM
© Reuters.

Investing.com - U.S. futures pointed to a lower opening for stocks on Friday, after China’s state-run media expressed frustration at the course of trade negotiations with the U.S.

It is "meaningless" for officials to meet without the U.S. showing it is sincere, according to Taoran Notes, a WeChat blog run by the state-owned Economic Daily, seen as a mouthpiece for government opinion.

The toughening rhetoric from China, which contrast with its earlier optimism regarding a resolution of the trade dispute, is forcing investors to come to terms with heightening tension between the two largest economies in the world.

It follows the exclusion of telecom equipment giant Huawei from the U.S. market on Wednesday by executive order. Elsewhere, it was reported that Chinese buyers staged an effective boycott of U.S. pork last week, despite a shortage of meat in their own country due to a devastating outbreak of swine fever.

Dow futures slumped 123 points or 0.5% by 6:40 AM ET (10:40 GMT), while S&P 500 futures was down 14 points or 0.5%. Tech-heavy Nasdaq 100 futures lost 48 points or 0.6%.

Nvidia (NASDAQ:NVDA) was among the top gainers in premarket trading, after its earnings for the first-quarter beat the consensus, although sales in its gaming segment fell.

Amazon (NASDAQ:AMZN) fell 0.7% in premarket trading on news that it is investing in U.K. food delivery company Deliveroo, while Pinterest (NYSE:PINS) slumped 14.8% after its first earnings report since going public failed to meet forecasts. Fiat Chrysler Automobiles (NYSE:FCAU) fell 1% and Apple (NASDAQ:AAPL) was down 0.7%.

Elsewhere, Applied Materials (NASDAQ:AMAT) gained 5.4% after a better-than-expected first quarter.

On the economic front, consumer sentiment numbers come out at 10:00 AM ET (14:00 GMT), while Federal Reserve Vice Chair Richard Clarida is set to speak, followed by New York Fed President John Williams and Dallas Fed President Robert Kaplan later in the day.

In commodities, crude oil surged 1.2% to $62.63 a barrel over fears of conflict between the U.S. and Iran, while gold futures fell 0.1% to $1,285.05 a troy ounce. The U.S. dollar index, which measures the greenback against a basket of six major currencies, rose 0.1% to 97.720.

Latest comments

US's so-called democracy is now worst than communism.  It is actually one-man government.
Donnie's reckless chest thumping tactic is not going to impress anybody... much less another superpower. Instead it will only scuttle negotiations. American consumers will pay dearly for his prolonged ill conceived tariff war.
China dumps bonds and backs out of agreements after 20 years of breaking trade agreement requirements and then blames us for it.... Children
They didn’t come to talk they came to demand. They are not the world power we are. They will be back.
I wish don would spend his time on affordable health care and building that wall thingy
Apparently he is still drawing up “blueprint” for the wall because he wants it to look stylish and pretty, which cost a lot more than originally planned... which begs another question: how does he expect Mexico to pay for it?
look at all the angry Chinese. how will you feed your 10 billion people.
*1.5 billion people. *by eating everything. Including you.
US is a declining power with no hope of revival. Just look at their debt. Last year it increased 1.3T which is twice as large as GDP growth. If your debt grows faster than revenue, then you are doomed.
Not true at all. Money is just a promissory note. What matters is if someone collects on your debt. Look at Japan and Italy and most of euro poor.
it's difficult to distinguish between democratic and chinese agents
This trade war is the best thing that could happen to make Trump a one term president. He's just increased the chances of a recession happening in 2020 which should trigger a bear market in stocks. His actions against Iran may mean we see $3/gal gas and Walmart has said his tariffs will mean higher prices in the US.
$4.22 in california now, let's wait for $6
What we have here is nothing more than good old fashion Royalty fighting among each other for riches. "It's not business, Sonny. It's personal."
China have devalued their currency by 5% to offset the tariffs, their exporters are telling their supply chain to reduce materials prices by 20%
Currency change did not offset tariffs. Chinese exporters charged the same price in dollar terms last tear. That’s why US got hit by all time high trade deficit. They won’t lower the price thus time because they can always sell the products to domestic market or other countries
Democrats are left wondering why they didn't do this years ago.
They are chicken
They know why. Because it's a stupid thing to do.
At the end of the day it's a TAX on the American public. And as we know, once a TAX has been implemented it doesn't ever go away. Get used to it!
They too will get used to it
If you buy Chinese made stuff yes. Don't do it.
You do realize that half the stuff in your house is probably made in China?
trump is doing what many lazy presidents wouldn't do. they took the easy way out and screwed America
How. Simple question. The average American can buy just about anything they want thanks to cheap Chinese imports. Unemployment is at record lows, he claims the economy is great. What exactly do you expect to gain? All that is happening is that prices will rise. You have this imaginary feeling in your head that you are somehow being screwed. That feeling was put there by Trump and his ilk.
It is very useless way to beat the greatest economic of china
Agree. In the short run, tariff increase could work. It would boost manufacturing jobs, which is consistent with Trump’s campaign about bringing jobs back to America. He needs the vote. I expect him to pull out of the tariff deal after his re-election. If he gets re-elected, that is. EU already proposed increasing their tariff, and other countries will follow if history teaches us anything.
I hope the market crashes. it's too overvalued and needs a healthy correction. come on trump, make it dump for another long term pump
Chinese are sneaky and you can never trust them. However playing hardball is a recipe to fail. Nobody can show weakness in front of their nation.. BTW did u look at US exports to China? Mostly agriculture and some vehicles. Third world I would say. So easy to be swapped by others.. Bye bye 16% of TSLA sales. Bye bye AAPL loosing market share worldwide anyway. . On the other hand if US had zero trade deficit with the rest of the world who would finance US deficits? Did u think about it? Not so bad deal to get real goods and give "money" created by pressing enter :)
Bye China
Except that was just Trump's claim. True or not...well, ask Trump and his great credit.
Except we're not the ones who backslid. Things were progressing pretty well until China pulled one of their classic negotiation tricks which is to change their minds on key points as discussions near an end. Their game is to get the other side frustrated so they accept a worthless deal. I've seen this one many times.
 . I don't understand. They can 'what' Trump?
I thought trump was a great negotiator?
Well he said trade wars are “easy”, so we should expect result soon, right?
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