Equity Index Futures Fall Slightly Before Latest US-China Trade Negotiations

Stock index futures traded slightly on Tuesday, as US investors return from a three-day weekend and before a new round of US-China trade talks.

What are the main landmarks?

Futures on the Dow Jones Industrial Average

YMH9, -0.24%

down 49 points, or 0.2%, to 25,834, while the S & P 500's futures contracts

ESH9, -0.30%

were down 6.35 points, or 0.2%, to 2,771.75. Future Nasdaq-100

NQH9, -0.29%

decreased by 14.75 points, or 0.2%, to 7,049.25.

Most US capital markets were closed Monday for Presidents' Day. Equities rose sharply last week, with the Dow

DJIA, + 1.74%

up 3.1%, the S & P 500 index

SPX, + 1.09%

increase by 2.5%. The Nasdaq composite

COMP + 0.61%

posted a 2.4% increase, which enabled the technology index to come out of the bear market.

What is the engine of the market?

Last week's gains were fueled in part by optimistic expectations of US-China trade negotiations. Senior US and Chinese officials met last week in Beijing. Discussions are scheduled to resume Tuesday in Washington.

President Donald Trump tweeted Sunday about trade negotiations saying: "Great progress is being made on so many different fronts!"

Investors seemed to pay little attention to Trump's declaration of a national emergency late last week to pay a wall along the US-Mexico border. Sixteen states filed a federal appeal against the statement on Monday.

While the Trump government seeks to resolve the conflict over US-Chinese trade relations, investors are also forced to weigh the consequences of a new study submitted Sunday to the White House by the Commerce Department, which is considering the 39, imposition of new tariffs. auto imports, for reasons of national security.

The report's recommendations have not yet been made public and the administration has 90 days to decide on the implementation of the study's proposals.

What stocks are under discussion?

Actions of Walmart Inc.

WMT, + 1.49%

rose 3.7% in pre-market trading, after the retailer announced fourth-quarter earnings and fourth quarter revenue higher than analysts' expectations, while increasing its annual dividend by 2%. The title is about to open at its highest level in three months.

Advance Auto Parts Inc.

AAP + 0.74%

the stock fell 2.7% before the bell, after the company reported fourth-quarter earnings above Wall Street's expectations, but same-store sales growth was insufficient.

Actions of Medtronic plc

MTD + 1.14%

rose 2.9% in pre-market, after the medical device manufacturer reported third-quarter earnings and third-quarter fiscal sales ahead of analysts' forecasts.

What do analysts say?

"After the boost of optimistic trade talks over last week's US-China trade talks, the risk appetite has eased somewhat and negotiations are expected to continue in Washington this week," he said. wrote Charalambos Pissouros, Senior Market Analyst at JFD Brokers, Tuesday research note. "Concerns over a possible escalation between the US and the EU in auto tariffs may be one of the reasons for slightly more modest investor sentiment."

What's in the economic calendar?

On the economic front, Loretta Mester, president of the Cleveland Federal Reserve Bank, is scheduled to speak at 8:50 am ET.

The National Association of Home Builders will release its housing market index for the month of February at 10 am.

How are other markets traded?

Asian equity markets ended the day mixed, Japan's Nikkei 225

NIK + 0.10%

slightly up 0.1% on the day, while Shanghai Composite Index in China

SHCOMP, + 0.05%

0.8% loss and Hong Kong's Hang Seng Index

HSI, -0.42%

decreased by 0.4%.

In Europe, shares traded on Tuesday with Stoxx Europe

SXXP, -0.47%

down 0.5%.

Crude oil price

CLH9, + 0.61%

were up Tuesday, with the price of gold

GCH9, + 0.89%

and the value of the dollar

DXY, + 0.13%

compared to his peers.