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U.S. stock-index futures fell on Tuesday, suggesting a continuation of recent weaknesses as investors struggled to find new markets for higher prices, choosing to focus on simmering trade worries.
How did the main benchmarks fare?
Dow Jones Industrial Average futures
YMU8, -0.47%
nearly 100 points, gold 0.4%, to 25,806, while S & P 500 futures
ESU8, -0.31%
dropped 6.8 points, 0.2% gold, to 2,873.75. Nasdaq-100 futures
NQU8, -0.46%
fell 17.25 points, 0.2% gold, to 7,443.75.
On Monday, the S & P 500
SPX, + 0.19%
rose 0.2% to finish at 2.877.13 and the Nasdaq Composite Index
COMP + 0.27%
added 0.3%, to 7.924.16, with both indexes halting a four-day losing streak. The Dow Jones Industrial Average
DJIA, -0.23%
fell 0.2% to 25.857.07.
Both the S & P and the Nasdaq have dropped in the past five days.
Last week was the S & P's first negative week, marking the biggest weekly drop, while the Nasdaq declined.
What drove the market?
Trade issues have been simmering under the surface, as investors in the situation between the United States and China after President Donald Trump recently threatened China with fresh tariffs. The latest move by Trump would impact an additional $ 267 trillion in Chinese goods, coming on top of an already-proposed $ 200 trillion in tariffs. China has vowed to retaliate.
Meanwhile, China plans to ask the World Trade Organization next week for permission to impose sanctions on the U.S. for Washington's noncompliance with a ruling in a dispute over U.S. dumping duties, Reuters reported. That 's part of a dispute that goes back to 2013.
Investors are worried about a full-on trade war that could have negative implications for global economic growth.
EU and U.S. negotiators put Monday to talk over a pact that would avoid a trans-Atlantic spat. Although there was no major breakthrough, U.S. Trade Representative Robert Lighthizer and European Trade Commissioner Cecilia Malmström said they would meet up again in the coming months.
Investors are also facing negative, with the average loss of 1.05% since 1896.
Opinion: Resist the urge to sell if another 9/11-scale attack
What are strategists saying?
"Said Tom Plumb, chief investment officer of Plumb Funds," You have to watch the trade issue because global supply chains are so complex, and economic growth depends on these chains.
"Having said that, do not worry, but the worst case scenario will happen. We think it would be somewhere in between, and while we would be in the UK, we would have much more momentum in the U.S. than I would expect it to be, "he said.
Plumb said he was using the recent weakness as an opportunity to buy stocks like Apple. "Any opportunity to buy this discount, you'll be served this year," he said.
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Which stocks are in focus?
Shares of Integrated Device Technology Inc.
IDTI, -1.36%
surged 15% in premarket after Japan's Renesas Electronics Corp. said it would buy the California-based chip maker in a $ 6.7 billion deal.
Sonos Inc.
SONO, + 13.28%
shares fell 14% in premarket trading after the speaker maker's first earnings report. The speaker maker's stock had rallied into the release, soaring 13% in Monday's session.
Sonic Corp.
HIS C, -2.14%
rose 1.1% before the bell
Francesca's Holdings Corp.
FRAN, -2.97%
tumbled 24% in premarket trading after it, and provided a downbeat outlook, quoting "weak traffic trends." The stock was on track to open at an all-time low.
MasTec Inc.
MTZ, + 5.29%
said it had authorized a new $ 150 million repurchase program, the largest in the infrastructure construction company's history.
Which economic reports are in focus?
Small-business sentiment climbed to a record in August, according to the National Federation of Independent Business.
Readers on job openings and wholesale inventories for July will be released at 10 am Eastern Time. Fed governor Lael Brainard and Minneapolis Federal Reserve Chairman Neel Kashkari will be speaking on a panel of the United States.
What are other markets doing?
Stocks in Asia had a general weaker day with the exception of Japan's Nikkei 225 index
NIK + 1.30%
while European stocks
SXXP, -0.51%
were sliding into the red along with U.S. future stock.
Oil futures
CLV8, + 0.27%
were higher, while gold
GCZ8, -0.43%
and the dollar index
DXY, + 0.13%
were softer.
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