Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Stocks - U.S. Futures Point to Lower Open on U.S. Tax Reform Delay

Published 11/10/2017, 06:57 AM
Updated 11/10/2017, 06:57 AM
© Reuters.  Wall Street

Investing.com - Wall Street futures slid lower on Friday, as a possible delay in the implementation of a key U.S. tax cut bill continued to dampen investors confidence, while markets continued to follow U.S. President Donald Trump's trip throughout Asia.

U.S. Senate Republicans unveiled a plan on Thursday which would reduce the corporate tax rate to 20% from 35% and make other significant changes to the individual tax system.

However, investors remain cautious as Senate Republican leaders said that they were considering postponing the implementation of the major corporate tax cut until 2019.

Meanwhile, a House tax reform bill, which differs from the Senate version, would be expected to take effect next year. If the Senate and House pass separate tax bills, lawmakers will have to reconcile them.

The blue-chip Dow futures were down 0.22%, the S&P 500 futures fell 0.39%, while the tech-heavy Nasdaq 100 futures declined 0.34%.

Media stocks were likely to remain in focus, after 21st Century Fox on Thursday reported third-quarter revenue slightly above expectations. The company had already made headlines earlier in the week following reports it has been in talks to sell most of its company to Disney.

Markets were also still digesting reports that the U.S. Justice Department told AT&T (NYSE:T) to sell Turner Broadcasting, which includes CNN, or DirecTV as condition for approval of the $85 billion AT&T-Time Warner deal. Responding to the reports, AT&T said it has \"no intention\" of selling CNN.

Financial stocks were likely to remain important movers, after weighing heavily on markets this week due to mounting concerns over the Trump administration\'s capacity to implement desired tax reforms.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Shares were mixed in pre-market trade, as Bank of America (NYSE:BAC) slipped 0.23%, while Citigroup (NYSE:C) gained 0.46%.

In the tech sector, NVIDIA Corporation (NASDAQ:NVDA) shares were up 3.01% before the open. On Thursday, the company reported a a third-quarter revenue increase of 32%, year-over-year, while earnings climbed 41%. The group\'s chips have especially proven valuable in the mining of cryptocurrencies.

On the earnings front for Friday, JC Penney Company Inc Holding (NYSE:JCP), Eco Stim Energy Solutions Inc (NASDAQ:ESES), PLx Pharma Inc (NASDAQ:PLXP), Calumet Specialty Products Partners (NASDAQ:CLMT) and Eco Stim Energy Solutions Inc (NASDAQ:ESES) are a few of the names posting results ahead of the opening bell.

Market participants were also monitoring President Trump\'s trip throughout Asia. Trump was set to attend a major economic summit in Vietnam on Friday morning, where he was expected to argue for new trade rules and lobby against North Korea.

In a meeting with Chinese counterpart Xi Jinping on Thursday, the U.S. President condemned countries he deemed guilty of \"chronic trade abuses.\"

He then went on to blame his predecessors for the “huge” trade deficit between the world’s two largest economies and commended the Chinese President\'s support for his efforts to tackle North Korea’s weapons programs.

The two leaders unveiled more than $250 billion in economic deals at the conclusion of their meeting.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.