US STOCKS-Wall St to open lower on trade woes; S&P sector reshuffle in focus

  • Reuters
  • Stock Market News
US STOCKS-Wall St to open lower on trade woes; S&P sector reshuffle in focus
Credit: © Reuters.

(For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in an Eikon news window)

* U.S.-China tariffs go into effect

* Trade-sensitive Boeing (NYSE: BA ), Caterpillar drop premarket

* Facebook, Twitter drop on report of new U.S. draft order

* S&P sector reshuffle to take effect, may boost volumes

* Futures down: Dow 0.10 pct, S&P 0.16 pct, Nasdaq 0.42 pct (Adds comments, updates prices)

By Shreyashi Sanyal

Sept 24 (Reuters) - U.S. stock indexes were set to open lower on Monday as the latest round of U.S.-China tariffs took effect, with neither country showing signs of backing down from a protracted trade war.

The markets could be volatile and trading volumes higher as the S&P 500 sector shuffle takes effect, with the telecoms sector reshaped into a "communications services" index to include heavy-hitting technology stocks such as Facebook Inc FB.O , Twitter TWTR.N and Alphabet GOOGL.O . of the three companies were down between 0.7 and 1.2 percent in premarket trading, on renewed fears of higher regulation after a report that the White House has drafted a preliminary order to direct federal agencies to probe the business practices of social media and internet firms. tariffs on some $200 billion worth of Chinese goods took effect on Monday, along with Beijing's retaliatory duties on $60 billion worth of U.S. products, which pressured trade-sensitive stocks. of the bigger risks with these tariffs going into effect is that the United States may be pushed out of the Chinese market and it is a growing market," said Scott Brown, chief economist at Raymond (NS: RYMD ) James in St. Petersburg, Florida.

"The markets were up pretty strong last week, keeping that in mind and also the news about trade is enough to contribute to the downward movement," Brown said.

Boeing BA.N , the biggest U.S. exporter to China, dropped 0.4 percent and Caterpillar CAT.N 0.5 percent, leading the losers on the Dow Jones Industrial Average .DJI before the bell.

The benchmark S&P 500 .SPX and blue-chip Dow Industrials have fared better than the Nasdaq .IXIC of late, as the latest list of Chinese goods subject to tariffs now includes many technology products. equipment makers Cisco CSCO.O and Netgear NTGR.O were down about 0.5 percent.

At 8:52 a.m. ET, Dow e-minis 1YMc1 were down 27 points, or 0.1 percent. S&P 500 e-minis ESc1 were down 4.75 points, or 0.16 percent and Nasdaq 100 e-minis NQc1 were down 31.75 points, or 0.42 percent.

Exxon Mobil (NYSE: XOM ) XOM.N gained 0.5 percent, the most among the Dow components, as did other energy companies as oil prices jumped after OPEC rebuffed calls by President Donald Trump to raise supply. O/R

Comcast CMCSA.O fell 3.7 percent after it won an auction for Britain's Sky Plc SKYB.L , ending a battle with Twenty-First Century Fox FOXA.O and Walt Disney (NYSE: DIS ) DIS.N . Fox and Disney were flat. SYMC.O rose 5 percent after the Norton anti-virus maker said it would not restate previous results, except for a $13 million transaction, after a four-month long probe into its accounting practices. Media P.N jumped 6.2 percent after satellite radio provider Sirius XM Holdings SIRI.O said it would buy the music streaming service in an all-stock deal valued at about $3.5 billion. Sirius fell 3.4 percent.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or


Related Articles