Wall Street will open lower at the start of the Trump-Kim summit, tensions between India and Pakistan are dissipating By Reuters

By Shreyashi Sanyal

(Reuters) – Wall Street is expected to open slightly down on Wednesday, reflecting losses suffered by global markets, the kickoff of the second US-North Korean nuclear summit and tensions between India and Pakistan , two countries with nuclear weapons.

North Korean leaders Kim Jong Un and Donald Trump met in Hanoi. The US president said he was not coming back on US claims regarding the denuclearization of North Korea.

India and Pakistan said on Wednesday they shot down their fighter jets a day after Indian warplanes struck Pakistan for the first time since a 1971 war, pushing the world's powers to show restraint.

"Tensions between India and Pakistan are weighing on the markets this morning in anticipation of an eventful day," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

"We do not expect the second round of (Federal Reserve Chairman Jerry Powell) testimony before the US House Finance Committee to change, putting the emphasis on geopolitical concerns and the Trump Summit. -Kim that will probably lead to a mixed market session. "

Powell said Tuesday that the Fed was "in no hurry to decide" on further interest rate changes and that rising risks and recently released data should not prevent solid growth of the US economy this year.

The dovish signals of the Fed and its optimism towards China and the United States. Trade negotiations have boosted equities in recent weeks, bringing the benchmark to almost 5% of its closing record reached at the end of September.

At 8:38, ET, down 41 points, or 0.16%. were down 4.5 points, or 0.16% and down 15.25 points, or 0.21%.

Among stocks, shares of Mylan (NASDAQ 🙂 NV fell 9.3% in pre-market trading, after the generic drug maker missed the quarterly earnings forecast and a low profit forecast for 2019, while he was facing significant problems at his Morgantown, West Virginia site.

Best buy Co Inc (NYSE 🙂 jumped 11.6% after the consumer electronics retailer beat analysts' quarter-on-quarter sales estimates, while announcing a dividend increase share buyback

Lowe's Companies Inc. rose 4.6% after US home improvement chain profits outpaced market expectations in the fourth quarter.

The Commerce Department will release its December December report on factory orders for goods at 10:00 am ET, likely increasing by 0.5 percent, compared to an unexpected decline in November.

The factories' data is ahead of the advanced report on gross domestic product released Thursday by the Commerce Department, which will include some of the data that would normally go into the second GDP estimate.

The GDP report could have a significant impact on the markets, as it will be the first and second report at the same time due to the closure of the government and the first glance of the quarter, has said Randy Frederick, vice president of trading and derivatives activities. for Charles Schwab (NYSE :).