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May 20, 2019

US Futures Indication I Dow futures are flat as investors focus on Huawei fallout

Sam Meredith



U.S. stock index futures barely moved Monday morning, as concerns about an intensifying fallout from a U.S. crackdown on Huawei weighed on market sentiment.
At around 5:45 a.m. ET, Dow futures indicated a nearly flat open. Futures on the S&P and Nasdaq were both seen slightly lower.
Last week, President Donald Trump’s administration added Chinese telecom company Huawei to a trade blacklist. The announcement prompted Alphabet’s Google to suspend business with Huawei that involves the transfer of hardware, software and key technical services.
It means Huawei can no longer license Google’s proprietary Android operating system and other services that it offers. Instead, Huawei is now only able to use a public version of Google’s operating system through the Android Open Source Project.
Google said Monday it made the move to comply with Washington’s decision to put Huawei on the so-called “Entity List,” meaning American firms need to get a license to sell products to the Chinese firm.
The intensifying trade war between the world’s two largest economies continued to keep financial markets on edge. However, a U.S. decision to remove tariffs on Canadian and Mexican steel and aluminum provided some relief for investors.
Canada’s Foreign Minister Chrystia Freeland said Ottawa would move quickly to ratify the new North American trade pact.
In corporate news, Pinduoduo, Game Technology, and Qudian are among some of the companies scheduled to report their latest quarterly figures before the bell.
No major economic data reports were expected on Monday.

Source: CNBC

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