Stocks - U.S. Futures Slip as US-China Talks Hit Reported Snag
14 November 2019, 10: 48
U.S. futures fell on Thursday, after reports that trade talks with China have hit a snag on Chinese purchases of U.S. farm products, amid other concerns.
President Donald Trump has claimed that China has agreed to buy up to $50 billion of agricultural products from the U.S., but China is not ready to agree to a specific number, The Wall Street Journal reported. Negotiations have also hit a bump in other agreements, including the mooted roll-back of U.S. tariffs on Chinese goods and China's relaxation of rules on the transfer of technology between foreign companies and their local partners.
Weak industrial output data in China, and anemic growth in Japan and Germany in the third quarter also weighed on sentiment.
fell 12 points or 0.2% by 6:48 AM ET (11:48 GMT), while lost 34 points or 0.1% and were down 4 points or 0.1%.
Meanwhile in earnings news, Walmart NYSE:), Brookfield Real Assets (NYSE:) and Viacom (NASDAQ:) are expected to report before the bell, while NVIDIA Corporation (NASDAQ:), Applied Materials (NASDAQ:) and Aurora Cannabis (TSX:) release their latest results after the market close.
Stocks sensitive to trade news were lower, with Caterpillar (NYSE:) dipping 0.5% and Micron Technology (NASDAQ:) down 0.4%. Cisco Systems (NASDAQ:) slumped 5.7% in premarket trade after it forecast its current quarter revenue to drop to 3% to 5% of growth year-on-year. Kraft Heinz (NASDAQ:) fell 1.8% after Goldman Sachs (NYSE:) downgraded the company due to earnings weakness.
On the data front, weekly come out at 8:30 AM ET, along with the (PPI) for October. Federal Reserve Chair Jerome Powell is expected to return to Congress for a second day of hearings starting at 10:00 AM ET.
In commodities, rose 0.4% to $1,469.25 a troy ounce, while the , which measures the greenback against a basket of six major currencies, inched up 0.1% to 98.280. jumped 1% to $57.69 a barrel.