Stock futures dip as Wall Street rally loses momentum

[February 17, 2017]  By Yashaswini Swamynathan

(Reuters) - U.S. stock index futures fell for the second straight day on Friday, after a record-setting few days on Wall Street, as investors await clarity on economic policy and ahead of a long weekend.

The S&P 500 has rise about 5 percent so far in 2017, with the Dow Jones Industrial Average up 4 percent, mainly on signs of an improving economy and promises by President Donald Trump to cut corporate taxes and reduce financial regulations.

Now, with a strong fourth-quarter earnings season mostly complete, many investors say they need concrete signs of progress from Trump to justify more gains.

Trump used his first solo news conference on Thursday to lash out at reporters on what he viewed as unfair coverage of his first few weeks in office.

The Dow Jones Industrial Average managed to close at a record high for the sixth straight session on Thursday, but losses in energy shares caused the S&P to snap a seven-day winning streak.

The lack of key economic data and a long weekend due to the Presidents Day holiday on Monday is also likely to keep investors from taking new positions.

Banks stocks, which have outperformed other sectors in the so-called "Trump trade", dropped in premarket trading as investors booked profits.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., February 7, 2017. REUTERS/Brendan McDermid

Morgan Stanley, Wells Fargo and Citigroup  were the biggest losers, falling more than 1 percent.

Dow component UnitedHealth slipped 3.1 percent to $158.50 after the Justice Department joined a whistleblower lawsuit against the health insurer.

Kraft jumped 4.4 percent after it offered to buy Unilever. Despite rejecting the offer, Unilever's U.S.-listed shares jumped 11 percent.

Mondelez, rumored to be a Kraft acquisition target, dropped more than 6 percent.

Futures snapshot at 7:06 a.m. ET:

Dow e-minis were down 40 points, or 0.19 percent, with 23,975 contracts changing hands.

S&P 500 e-minis  were down 4.5 points, or 0.19 percent, with 116,905 contracts traded.

Nasdaq 100 e-minis  were down 6.25 points, or 0.12 percent, on volume of 21,148 contracts.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D'Souza)

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