FILE PHOTO: Traders work on the floor of the New York Stock Exchange, (NYSE) in New York, NY, U.S., April 30, 2018. REUTERS/Brendan Mcdermid
May 18, 2018
By Medha Singh
(Reuters) – U.S. stock index futures were lower on Friday as technology shares slipped, while investors waited for the outcome of Sino-U.S. trade talks.
China denied it had offered to cut its trade surplus with the United States by up to $200 billion, hours after it dropped an anti-dumping probe into U.S. sorghum imports, but added that talks were constructive.
The world’s two biggest economies are seeking to bridge a divide on trade issues during the two-day talks in Washington that began on Thursday.
“The focus today will be on trade talks as China denied any major reductions in surplus and the NAFTA talks progression” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
Among technology stocks, Alphabet <GOOGL.O> fell 1.3 percent in premarket trading and is expected to weigh on the major indexes.
Applied Materials <AMAT.O> dropped 6.2 percent after the chip gear maker’s disappointing forecast renewed concerns over slowing smartphone demand.
Campbell Soup <CPB.N> declined 8.8 percent after the company cut its full-year earnings forecast and said Chief Executive Officer Denise Morrison would step down. At 8:55 a.m. ET, Dow e-minis <1YMc1> were down 5 points, or 0.02 percent. S&P 500 e-minis <ESc1> were down 4.75 points, or 0.17 percent and Nasdaq 100 e-minis <NQc1> were down 29 points, or 0.42 percent.
“We’re looking at a mixed session today. We still have the dollar creeping up again, rates pretty much doing nothing.”
Investors have been fretting about rising interest rates, with the 10-year Treasury yield, the benchmark for global borrowing costs, holding above the key 3 percent level for the fourth day.
Tractor maker Deere <DE.N> reported a rise in quarterly sales, but profits were dragged down by higher freight and material costs. Its shares were up 0.4 percent.
The company’s results reflect concerns of big U.S. manufacturers, which have warned of higher raw material costs amid a surge in commodity prices and rising interest rates.
Oil prices continued their surge, with Brent crude <LCOc1> on track for the sixth straight week of gains, boosted by strong demand, looming sanctions on Iran, plummeting Venezuelan production and Nigerian disruptions. [O/R]
Nordstrom <JWN.N> declined 8.1 percent after the upscale department store operator reported same-store sales that missed analysts’ estimates.
(Reporting by Medha Singh in Bengaluru; Editing by Anil D’Silva)
