By Investors Hub
The major U.S. index futures are currently pointing to a lower opening on Monday, with stocks likely to see some further downside following the pullback seen late in the previous session.
Ongoing concerns about the escalating U.S.-China trade dispute are likely to weigh on Wall Street after Google suspended some of its business with Chinese tech giant Huawei.
Google has cut Huawei off from business involving the transfer of hardware, software and technical services, complying with an order by President Donald Trump blocking the sale or transfer of U.S. technology to Huawei.
?We are complying with the order and reviewing the implications,? a Google spokesperson said, noting services such as Google Play and the security protections from Google Play Protect will continue to function on existing Huawei devices.
Overall trading activity may be somewhat subdued, however, as a lack of major U.S. economic data may keep some traders on the sidelines.
Reports on new and existing home sales and durable goods orders are likely to attract attention in the coming days along with the minutes of the latest Federal Reserve meeting.
Stocks showed wild swings over the course of the trading session on Friday before ending the day mostly lower. The major averages recovered from an initial move to the downside only to pull back sharply late in the session.
At the end of the day, the major averages were all firmly in negative territory. The Dow fell 98.68 points or 0.4 percent to 25,764.00, the Nasdaq slumped 81.76 points or 1 percent to 7,816.28 and the S&P 500 dropped 16.79 points or 0.6 percent to 2,859.53.
The major averages also closed lower for the week. The Nasdaq tumbled by 1.3 percent, while the Dow and the S&P 500 slid by 0.7 percent and 0.8 percent, respectively.
Reflecting recent market sensitivity to trade-related news, the late-day pullback came on the heels of a CNBC report indicating negotiations between the U.S. and China appear to have stalled.
Citing two sources briefed on the status of trade talks, CNBC said scheduling for the next round of negotiations is “in flux” because it is unclear what the two sides would discuss.
Sources told CNBC discussions regarding scheduling the next round of talks have not taken place since President Donald Trump signed an executive order ramping up scrutiny of Chinese telecom companies.
Lingering concerns about the escalating trade dispute between the U.S. and China also contributed to the initial weakness on Wall Street.
While Trump has sought to blame China for backing out of a nearly completed trade deal, a spokesperson for China’s Ministry of Commerce claims the U.S. is responsible for serious setbacks in the trade talks.
Commerce Ministry spokesperson Gao Feng accused the Trump administration of “bullying behavior” with a recent increase in tariffs, according to state-run Chinese news agency Xinhua.
“It is regrettable that the U.S. side unilaterally escalated trade disputes, which resulted in severe negotiating setbacks,” Gao said.
He added, “We urge the U.S. side to correct wrongdoings as soon as possible to avoid causing heavier damages to businesses and consumers in both countries and dragging down the global economy.?
However, concerns about trade waned after the Trump administration officially delayed imposing tariffs on imported automobiles and parts for up to six months, confirming media reports from earlier this week.
A White House statement noted Trump has directed U.S. Trade Representative Robert Lighthizer to negotiate agreements to address the national security threat posed by auto imports.
On the U.S. economic front, the University of Michigan released a report showing a substantial improvement in consumer sentiment in May, although the data was recorded mostly before trade negotiations with China collapsed.
The preliminary report showed the consumer sentiment index surged up to 102.4 in May from 97.2 in April, reaching its highest level in fifteen years. Economists had expected the index to inch up to 97.5.
Oil service stocks showed a substantial move to the downside over the course of the trading session, dragging the Philadelphia Oil Service Index down by 3.2 percent. The sell-off by oil service stocks came amid a modest decrease by the price of crude oil.
Significant weakness also emerged among semiconductor stocks, as reflected by the 2 percent slump by the Philadelphia Semiconductor Index.
Natural gas, oil producer, and networking stocks also saw considerable weakness on the day, notable strength was visible among computer hardware stocks.
Shares of Cray Inc. (CRAY) soared 22.5 percent after she supercomputer maker agreed to be acquired by Hewlett Packard Enterprise (HPE) for $1.3 billion in cash.
more recommended stories
Naira Gains 0.07% at I&E, Loses 0.28% at BDC Amid Worries
By Cowry Asset In the just.
T-Bills Yields Shed 0.17% on Absence of OMO Sales
By Dipo Olowookere Yields on treasury.
NSE: Equities Gain 0.06% to Halt 8 Consecutive Losses
By Dipo Olowookere The eight straight.
Nigeria’s Inflation to Hit 12% in 2019—Fitch
By Dipo Olowookere Global rating agency,.
Experts to Discuss Nigerian Islamic Finance Market June 18
By Dipo Olowookere In order to.
Shareholders Okay N6.5bn for Recapitalisation of Wapic Insurance
By Modupe Gbadeyanka Shareholders of Wapic.
NASCON to Expand Product Range for More Earnings
By Modupe Gbadeyanka The management of.
Nigeria Suffers 43% Drop in Foreign Investment Inflows
By Modupe Gbadeyanka The value of.