US Stocks Open on Disappointing Earnings, Trade Concerns

May 23, 2018
US Stocks report

By Investors Hub

The major U.S. index futures are pointing to a lower opening on Wednesday, with stocks likely to see further downside following the weakness seen in the previous session.

Disappointing earnings news from Target (TGT) may weigh on the markets, as the discount retailer is moving significantly lower in pre-market trading.

Traders may also continue to react to comments from President Donald Trump expressing some dissatisfaction with trade talks with China.

?Our Trade Deal with China is moving along nicely, but in the end we will probably have to use a different structure in that this will be too hard to get done and to verify results after completion,? Trump said in a post on Twitter.

U.S. stocks fell on Tuesday, unable to sustain positive momentum from the previous session despite overtures from China.

China will cut the import tariffs it charges on cars to 15 percent, which will give a boost to foreign automakers in the world’s largest market, especially for U.S. automakers.

The Chinese Finance Ministry said Tuesday that it would cut import duties on passenger vehicles from 25 percent to 15 percent, starting July 1st.

Still, U.S. President Donald Trump says he’s “not really” pleased with China’s trade talks so far.

The Dow Jones Industrial Average closed 178.88 points, or 0.7 percent lower at 24,834.65. The S&P 500 Index fell 8.54 points, or 0.3 percent to 2,724.46 and the Nasdaq Composite edged down 15.58 points or 0.2 percent to 7,378.46.

Kohl’s (KSS) announced the company now expects its adjusted fiscal 2018 earnings to be $5.05 to $5.50 per share, compared to its prior guidance of $4.95 to $5.45. Shares tumbled 7 percent.

J.C. Penney (JCP) shares also moved sharply lower after the abrupt resignation of the company’s CEO Marvin Ellison.

Meanwhile, Micron (MU) shares jumped 7.4 percent after a deal with Intel. The chipmaker raised quarterly guidance Monday.

Adobe (ADBE) will buy e-commerce platform Magento in $1.68 billion deal. Adobe shares were up fractionally.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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