Futures drop on trade tensions ahead of long weekend
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[August 31, 2018]
By Shreyashi Sanyal
(Reuters) - U.S. stock index futures fell
on Friday, ahead of the long holiday weekend, with investors wary after
President Donald Trump's latest salvo in Washington's trade war with
China.
Wall Street snapped a four-day winning streak on Thursday after
Bloomberg reported Trump was ready to impose tariffs on $200 billion
more of Chinese goods next week, sooner than many expected, when a
public comment period on the plan ends.
The U.S.-China dispute has overshadowed what has been intense, but
constructive trade negotiations between the United States and Canada,
although a deal is yet to be struck.
"The threat of global growth taking a hit from a damaging U.S-China
relationship remains 'front and center'," said Dean Popplewell, vice
president of market analysis at Oanda.
Traders also cautioned markets could be susceptible to bigger-than-usual
gyrations as trading volumes are expected to be light ahead of the long
Labor day holiday weekend.
At 7:31 a.m. ET, Dow e-minis <1YMc1> were down 52 points, or 0.20
percent. S&P 500 e-minis <ESc1> were down 5.25 points, or 0.18 percent
and Nasdaq 100 e-minis <NQc1> were down 7.75 points, or 0.10 percent.
Shares of Coca-Cola <KO.N> rose 0.8 percent in premarket trading after
the company said it would buy coffee chain Costa for $5.1 billion.
Starbucks <SBUX.O> fell 2.3 percent.
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A trader works at the New York Stock Exchange (NYSE) in Manhattan,
New York, U.S., August 27, 2018. REUTERS/Andrew Kelly
Lululemon <LULU.O> was up 10.4 percent after the Canadian athletic apparel maker
posted a second-quarter profit that beat estimates on strong online sales,
particularly in China.
Apple <AAPL.O> gained 0.3 percent. Warren Buffett said Berkshire Hathaway <BRKa.N>
had added to its stake in the iPhone maker and Apple announced a Sept. 12 event,
at which it is expected to unveil new iPhone models.
Amazon.com <AMZN.O> was up 0.2 percent, topping $2,000 for the second day in a
row to renew its push to join Apple in the $1 trillion market cap club.
Integrated Device Technology <IDTI.O> jumped 15 percent after Japanese
automotive chipmaker Renesas Electronics <6723.T> said it was considering buying
the U.S. chipmaker.
The University of Michigan's consumer sentiment index for August is expected at
10 a.m. ET.
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Shounak Dasgupta)
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