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Aug 2, 2019

Dow | Wall Street Future Report on Friday 2, August 2019 | Dow futures extend losses after Trump's latest China tariff threat

Sam Meredith



U.S. stock index futures were lower Friday morning, after President Donald Trump said he would slap an additional 10% tariff on Chinese imports from next month.
At around 5:40 a.m. ET, Dow futures indicated a negative open of more than 70 points. Futures on the S&P and Nasdaq were both lower.
In a series of tweets on Thursday, Trump said the 10% charge would be imposed on $300 billion worth of Chinese goods. The levy will take effect starting September 1.
The move breaks a truce in the long-running trade war between the world’s two largest economies, with investors fearful it could further disrupt global supply chains.
China’s foreign ministry pushed back against Trump’s latest tariff threat on Friday morning, reportedly saying the world’s largest economy should give up its illusions, shoulder some responsibility and come back to the right track on resolving the trade war.
China’s spokesperson at the foreign ministry, Hua Chunying, said at a daily press briefing that Beijing would have to take countermeasures if the U.S. was committed to putting more tariffs on Chinese goods, Reuters reported.
Trump’s tariff threat came as a surprise to financial markets in the previous session, in large part because negotiators for the two sides had just met earlier this week in China.
The Dow closed 280.85 points lower at 26,583.42 on Thursday, after rallying as much as 311 points earlier in the day.
On the data front, investors will be closely monitoring the latest reading of nonfarm payrolls at 8:30 a.m. ET. Average hourly wages and unemployment rate figures for July will be released at the same time.
International trade data for June, factory orders for June and consumer sentiment for July will also be released Friday morning.
In corporate news, Chevron, Exxon Mobil, and Arconic are among some of the major companies set to report their latest quarterly earnings before the opening bell.

Source: CNBC

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