Wall Street set for negative open
U.S. stock market is expected to open in the red amid escalating trade tensions between the Washington and Beijing. On Sunday, Trump tweeted that he would raise punitive levies on $200 billion worth of Chinese goods from 10% to 25%.
Trump administration officials say Chinese negotiators have backtracked on important commitments made during months of talks aimed at ending the trade war.
At 6:53 a.m. ET, futures on the blue-chip Dow were down 126 points, or 0.48% to 26,279. Futures on the tech-heavy Nasdaq fell 45.75 points, or 0.59% to 7,757.75 while those on the S&P 500 dropped 14.88 points, or 0.51% to 2,917.62.
China on Tuesday confirmed that Vice Premier Liu He will visit the U.S. on Thursday to continue trade discussions, despite an unexpected announcement by President Donald Trump to impose new tariffs on Chinese products.
Mr. Liu is scheduled to visit the U.S. from May 9 to May 10 for talks. The trip also comes as China state media reports that the country will not respond to White House’s threats with concessions.
Senators criticize potential FTC, Facebook settlement
Two U.S. senators (one Republican and one Democrat) on Monday called on the Federal Trade Commission (FTC) to hold top officials of Facebook, Inc (NASDAQ: FB) responsible for the company’s misuse of consumers’ personal information.
Senators Josh Hawley, a Republican, and Richard Blumenthal, a Democrat, sent a letter to the FTC saying that even a possible $5 billion fine is a “bargain” for the social media giant.
Both want the agency to punish top Facebook executives, potentially including Chief Executive Mark Zuckerberg. Shares of Facebook were down slightly in pre-market trading to $192.40.
Earnings to watch today
US Foods Holding Corp (NYSE: USFD) is scheduled to release quarterly earnings before the open today. TransDigm Group Incorporated (NYSE: TDG), Emerson Electric Co (NYSE: EMR), and Owens & Minor, Inc (NYSE: OMI) will also report before the market opens.
Lyft, Inc (NASDAQ: LYFT) which has been struggling since making its public debut last month, will announce its earnings report after the close today. Other companies releasing earnings after the closing bell include Sprint Corporation (NYSE: S), Electronic Arts, Inc (NASDAQ: EA).