Wall St. set to open
lower amid uncertainty under Trump
Send a link to a friend
[January 23, 2017]
By Yashaswini Swamynathan
stocks looked set to open lower as investors around the world sought
safe-haven assets such as gold and U.S. Treasuries in response to the
protectionist sentiments expressed by President Donald Trump in his
Pledging to put "only America first", Trump laid out two simple rules
after taking oath on Friday - buy American and hire American.
Wall Street hit a series of record highs after Trump's election in
November as investors expected the economy to get a boost from his
proposals for tax and regulatory reforms and higher infrastructure
However, the "Trump trade" has unraveled in recent weeks as investors
fret about the potential impact of his isolationist stance on world
trade and the lack of clarity on his ambitious plans.
"From the standpoint of moving the market, Donald Trump is going to be a
trader's dream because he will create market swings, choppy trading and
erratic behavior," said Andre Bakhos, managing director of Janlyn
Capital in Bernardsville, New Jersey.
"We are sitting near all-time highs but there isn't anything fresh from
earnings or President Trump that is going to make investors run out and
buy stocks," Bakhos said.
Dow e-minis were down 19 points, or 0.1 percent at 8:25 a.m. ET
(1325 GMT), with 22,048 contracts changing hands.
S&P 500 e-minis were down 4.25 points, or 0.19 percent, with
131,108 contracts traded.
Nasdaq 100 e-minis were down 9.5 points, or 0.19 percent, on volume of
Trump has made it clear that he plans to hold talks with leaders of
Canada and Mexico to renegotiate the North American Free Trade Agreement
(NAFTA) and intends to withdraw from the 12-nation trade pact of the
[to top of second column]
Traders gather for Keane Group, Inc.'s IPO on the floor of the New
York Stock Exchange (NYSE) in Manhattan, New York City, U.S.,
January 20, 2017. REUTERS/Stephen Yang
dollar hit a six-week low on Monday, while prices of safe-haven gold rose.
Street ended higher, the first in over 50 years under a new president, helped by
a thrush of strong quarterly corporate earnings.
Nearly 65 percent of S&P 500 companies that have reported earnings so far have
beaten analysts' expectations, according to Thomson Reuters I/B/E/S.
Dow component McDonald's slipped 0.4 percent at $121.80 premarket even after the
fast-food chain said comparable sales at its U.S. restaurants fell less than
Halliburton fell 0.6 percent after the world's No. 2 oilfield services provider
reported a bigger loss in the latest quarter.
Qualcomm dropped 4.1 percent to $60.33 after Apple filed a $1 billion lawsuit
against the chip supplier on Friday.
Perrigo was off 1.9 percent at $73.65 after Jefferies cut its price target.
No major economic data is scheduled for the day.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D'Silva)
[© 2017 Thomson Reuters. All rights
Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.