Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Wall Street set for weak open as caution prevails ahead of trade talks

Stock Markets Oct 07, 2019 09:16AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
US500
-1.51%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
-1.71%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GM
-3.52%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
C
-1.70%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ETFC
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
1YMZ2
-1.65%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Shreyashi Sanyal

(Reuters) - Wall Street's main indexes were set to slip at the opening bell on Monday as investors braced for U.S.-China trade talks later in the week, after a rollercoaster start to the month on fears that the world's largest economy could be sliding into a recession.

Tariff concessions from the United States and China last month fanned hopes of a dissolution to a prolonged trade war, but market participants have grown nervous about the outcome of high-level negotiations that begin on Thursday.

Chinese officials signaled they were increasingly reluctant to agree to a broad trade deal pursued by U.S. President Donald Trump, Bloomberg reported over the weekend.

"Right now, investors are more focused on an actual outcome from these talks, but a majority have become somewhat skeptical that there will be something concrete this week," said Rick Meckler, partner at Cherry Lane Investments, New Vernon, New Jersey.

Wall Street logged a choppy start to the month as concerns fueled by a contraction in U.S. factory activity and weaker-than-expected services sector data were countered by rising bets of a third interest rate cut this year by the Federal Reserve.

Traders see a 77.5% chance of the Fed cutting rates by a quarter percentage point at its policy meeting later this month, up from about 40% a week ago, according to CME Group's FedWatch tool.

After losing about 3% earlier in the week, the S&P 500 (SPX) and Dow Jones (DJI) indexes gained more than 1% on Friday after a report showed nonfarm payrolls increasing by 136,000 last month and the unemployment rate dropping to a 50-year low.

Investors will now turn to the third-quarter earnings season, which kicks off next week with U.S. banks reporting results, probing the impact of the trade war on Corporate America.

Analysts expect the lowest quarterly profit performance since 2016, with S&P 500 earnings falling 2.7% from a year ago, based on IBES data from Refinitiv.

At 8:57 a.m. ET, Dow e-minis were down 53 points, or 0.2%. S&P 500 e-minis were down 7.75 points, or 0.26% and Nasdaq 100 e-minis were down 25.25 points, or 0.33%.

Among stocks, E*Trade Financial Corp (O:ETFC) rose 2.4% after UBS raised its rating on the online broker's shares to "buy".

Ride-hailing company Uber Technologies Inc (N:UBER) also rose 3.2% as Citigroup (NYSE:C) upgraded its shares to "buy".

General Motors Co (N:GM) dropped 1.3%, after the UAW rejected the carmaker's latest offer of a four-year labor contract and as its striking workers took a "turn for the worse" on Sunday.

Align Technology (O:ALGN) shares fell 1.8%, after Guggenheim downgraded shares of the orthodontic device maker to "neutral" on rising competition.

Rival SmileDirectClub Inc (O:SDC) added 2.6%. At least five brokerages started coverage of the teeth alignment company with "buy" or equivalent ratings, despite a disappointing market debut last month.

Wall Street set for weak open as caution prevails ahead of trade talks
 

Related Articles

Tesla's third-quarter deliveries miss estimates
Tesla's third-quarter deliveries miss estimates By Reuters - Oct 02, 2022

Tesla (NASDAQ:TSLA) Inc on Sunday announced its third-quarter electric vehicle deliveries were 343,830, lower than expected and weighed down by production stoppages to update its...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email