Futures dip as investors weigh tax cut delays, earnings

Send a link to a friend  Share

[April 18, 2017]  By Yashaswini Swamynathan

(Reuters) -
U.S. 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 healthcare.

* 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 dipped.

* Wall Street had closed higher in very thin trading volumes on Monday as investors bought technology and bank stocks.

[to top of second column]

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' expectations.

* 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. ET.

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 D'Silva)

[ 2017 Thomson Reuters. All rights reserved.]

Copyright 2017 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Back to top