Hopes that the United States and China will end their bitter
trade row and a dovish stance on future interest rate hikes by
the Federal Reserve has propelled the S&P 500 11 percent higher
But the benchmark index has been struggling to go past the
2,800-point mark, a key resistance level, closing lower in five
of the past six sessions.
"After the trade euphoria that kick-started the week, markets
have quickly become stuck in a soggy patch with no real
catalysts to push them one way or the other with any
conviction," Deutsche Bank strategist Jim Reid wrote in a note
A report that the United States and China would arrive at a
trade agreement as early as month-end kicked off the week on a
positive note, but the optimism-driven rally has since fizzled
At 7:10 a.m. ET, Dow e-minis were down 38 points, or 0.15
percent. S&P 500 e-minis were down 4 points, or 0.14 percent and
Nasdaq 100 e-minis were down 8.5 points, or 0.12 percent.
General Electric Co shares fell 1.8 percent in premarket trade,
extending losses from a day earlier, after the conglomerate
warned of a negative net cash flow from its industrial
businesses this year.
Among other early movers, TripAdvisor Inc slipped 3.7 percent
after a top analyst downgraded shares of the online travel
company, citing a weak start to 2019.
Tesla Inc rose 0.7 percent after a Shanghai city government
official said the electric carmaker's upcoming vehicle assembly
facility in Shanghai is expected to be completed in May.
In economic news, the Commerce Department's report is expected
to show trade deficit widened to $57.3 billion in December from
$49.3 billion in November. The data is due at 8:30 a.m. ET.
The Federal Reserve's Beige Book, a compendium of anecdotes on
the health of the economy drawn from the central bank's sources
across the nation, is expected at 2 p.m. ET (1800 GMT).
(Reporting by Medha Singh and Amy Caren Daniel in Bengaluru;
Editing by Arun Koyyur)
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