U.S. stocks looked set to open lower on Tuesday following disappointing results from a clutch of Dow stocks and as investors fretted over President Donald Trump’s policies.
Investors’ enthusiasm about fiscal stimulus under the new administration has been tempered by worries over Trump’s isolationist policies such as travel restrictions to the United States, which sparked protests across U.S. cities and criticism from several corporate leaders.
The dollar edged lower against a basket of six major currencies .DXY on Tuesday and was on track for a 1.9 percent fall this month, its worst start to the year since the financial crisis.
Corporate America’s quarterly performance added to the downbeat sentiment, with three Dow components Pfizer (PFE.N) and Mastercard (MA.N) were down premarket after reporting results.
“You’ve got a very busy week for earnings, economic data and central bank meetings,” said Adam Sarhan, chief executive officer at 50 Park Investments in Florida.
“So when you add all this political uncertainty, that leads investors to sell stocks first and ask questions later, especially after a historic run.”
Dow e-minis 1YMc1 were down 33 points, or 0.17 percent, at 8:28 a.m. ET (1328 GMT), with 25,259 contracts changing hands.
S&P 500 e-minis ESc1 were down 4.5 points, or 0.2 percent, with 150,417 contracts traded.
Nasdaq 100 e-minis NQc1 were down 11 points, or 0.21 percent, on volume of 25,435 contracts.
Under Armour’s (UA.N) shares plunged 22 percent to $19.60 following the sportswear maker’s disappointing sales and forecast. Bigger rival Nike (NKE.N), another Dow component, was off 1.9 percent.
Mylan (MYL.O) was up 2.9 percent after a U.S. court rejected Teva’s claims of patent infringement on its multiple-sclerosis drug. Mylan is trying to market a generic version of the drug.
Apple (AAPL.O), the world’s most valuable public company, is scheduled to report after markets close.
The Federal Reserve will also be on investors’ watch list as its policy-setting body begins a two-day meeting. The central bank is not expected to raise interest rates, after a move in December, but investors will focus on how policymakers view the economy under a Trump presidency.
A reading from the Conference Board is likely to show that the consumer confidence index slipped slightly in January after hitting its highest in more than 15 years in December. The data is due at 10:00 a.m. ET.
Link: http://www.reuters.com/article/us-usa-stocks-idUSKBN15F1GB