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Aug 2, 2018

Dow futures set to drop nearly 200 points as trade concerns intensify I Before the Bell I CNBC

cnbc.com

Dow futures set to drop nearly 200 points as trade concerns intensify

Alexandra Gibbs, Fred Imbert


U.S. stock index futures fell sharply on Thursday as trade worries intensified once again.
Dow Jones Industrial Average futures dropped 175 points, indicating a decline of 187. 82 points at the open. S&P 500 and Nasdaq 100 futures also posted sharp losses ahead of the open.
Pedestrians holding umbrellas pass outside the New York Stock Exchange. Michael Nagle | Bloomberg | Getty Images
Pedestrians holding umbrellas pass outside the New York Stock Exchange.
On Wednesday, the U.S. administration announced that President Donald Trump had spoken with U.S. Trade Representative Robert Lighthizer and asked him to consider increasing the proposed levies on $200 billion worth of Chinese goods up to 25 percent, from 10 percent.
Consequently, markets around the world continue to be on edge over what these trade tensions could mean for Washington and Beijing going forward. Both markets in Asia and Europe saw red across the region on Thursday.
Shares of big exporters Caterpillar and Boeing both fell more than 1 percent in the premarket.
Earnings season continues to keep investors busy on Thursday, with a whole slew of companies due to report.
Out of those scheduled, DowDuPont, Aetna, Kellogg, Royal Caribbean, TransCanada, Yum Brands, AMC Networks, Blue Apron, AIG, Activision Blizzard, CBS, GoDaddy, Symantec, Western Union, GoPro, and Shake Shack will be of key importance to investors.
Elsewhere, investors will be digesting earnings news from those who reported after Wednesday's market close, including Tesla. Shares of Tesla surged in after-hours trading, after the electric carmaker backed previous forecasts that stated the second half of the year would be profitable.
Sticking with economic releases, jobless claims are due out at 8:30 a.m. ET, followed by factory orders at 10 a.m. ET.
Elsewhere, investors are likely to be digesting news from the U.S. central bank on Wednesday, which saw the Federal Open Market Committee hold fire on raising interest rates, but indicate that it was upgrading its outlook on the U.S. economy to strong.