Futures dip as investors
weigh tax cut delays, earnings
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[April 18, 2017]
By Yashaswini Swamynathan
stock index futures were lower on Tuesday as investors weighed a
possible delay in tax reforms, while keeping an eye on quarterly
earnings and global politics.
* U.S. Treasury Secretary Steven Mnuchin told the Financial Times on
Monday that the Trump administration's timetable for tax reform was
probably delayed following setbacks in negotiations with Congress over
* Mnuchin's statement added to concerns about President Donald Trump's
ability to deliver on his promises to cut taxes and simplify regulations
- bets on which U.S. stocks have hit record highs since his election.
* A raft of quarterly earnings from corporate heavyweights is expected
to keep investors busy. Bank of America shares rose 1.3 percent
premarket after the company reported a strong jump in quarterly profit.
* Goldman Sachs, which is scheduled to report results before markets
open, was up 0.3 percent.
* Safe-haven bets continued to be in favor as investors remained on the
edge ahead of critical presidential elections in France and tensions
between the United States and North Korea.
* In an unscheduled statement, British Prime Minister Theresa May called
for an early election on June 8 to guarantee political stability as the
country negotiates its way out of the European Union.
* Gold prices hovered close to five-month highs, while the dollar
* Wall Street had closed higher in very thin trading volumes on Monday
as investors bought technology and bank stocks.
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Traders work on the floor of the New York Stock Exchange (NYSE) in
New York, U.S., April 17, 2017. REUTERS/Brendan McDermid
* Shares of Dow component UnitedHealth rose 2.3 percent to $170.95
premarket after the health insurer reported quarterly revenue and profit
that beat analysts' estimates.
* Johnson & Johnson slipped 0.9 percent to $124.60 after the healthcare
conglomerate reported quarterly revenue that missed analysts'
* A report on March building permits is due at 8:30 a.m. ET (1230 GMT),
while manufacturing output data for the month is expected at 9:15 a.m.
Futures snapshot at 6:55 a.m. ET:
* Dow e-minis were down 27 points, or 0.13 percent, with 27,231
contracts changing hands.
* S&P 500 e-minis were down 6.75 points, or 0.29 percent, with
149,238 contracts traded.
* Nasdaq 100 e-minis were down 12.75 points, or 0.24 percent, on
volume of 26,730 contracts.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil
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