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U.S. stock futures dip as Trump comments keep investors on edge

Published 08/23/2017, 06:46 AM
Updated 08/23/2017, 06:46 AM
© Reuters.  U.S. stock futures point to lower open

© Reuters. U.S. stock futures point to lower open

Investing.com - U.S. stock futures pointed to a lower open on Wednesday morning, as U.S. political developments kept investors on edge after President Donald Trump raised the specter of a government shutdown to fulfill a campaign pledge of building a wall at the U.S.-Mexican border.

At a rally with his supporters in Phoenix late Tuesday, Trump referred to his vow to build a wall at the border with Mexico and said, "If we have to close down the government, we are building that wall."

Trump also warned that he might terminate the NAFTA trade treaty with Canada and Mexico after first round talks aimed at revamping the trade pact ended with few signs of progress.

The blue-chip Dow futures shed 43 points, or about 0.2%, by 6:45AM ET (1045GMT), the S&P 500 futures fell 8 points, or around 0.3%, while the tech-heavy Nasdaq 100 futures declined 18 points, or roughly 0.3%.

U.S. stocks ended sharply higher on Tuesday, with each of the three major indices posting their best one-day gains since April, on renewed hopes of U.S. tax reform.

Meanwhile, market players braced for an annual gathering of central bankers at a meeting in Jackson Hole, Wyoming on Thursday and Friday, where Federal Reserve Chair Janet Yellen and European Central Bank chief Mario Draghi are set to deliver speeches on the outlook for monetary policy and interest rates.

On the data front, the Commerce Department is to publish a report on new home sales for July at 10:00AM ET (1400GMT). Wednesday's calendar also features flash Markit manufacturing and service sector activity surveys.

Among active pre-market movers, Lowe’s (NYSE:LOW) shares dropped more than 5% after the No. 2 U.S. home improvement retailer reported disappointing quarterly profit ahead of the bell.

Besides Lowe's, earnings are also expected from American Eagle Outfitters (NYSE:AEO), Guess (NYSE:GES), HP (NYSE:HPQ) and Williams-Sonoma (NYSE:WSM).

Shares in Salesforce (NYSE:CRM) looked set for a down day, falling around 2% in premarket action, after reporting a quarterly profit that narrowly beat analysts' estimates.

Looking to commodities, oil prices were lower as investors looked ahead to the Energy Department's weekly supply report at 10:30AM ET (1430GMT).

U.S. crude was at $47.70 a barrel, down 13 cents, or around 0.3%, while Brent slipped 25 cents to $51.62.

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