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Stock futures show S&P 500 backing out of record after report says China has doubts about trade deal



Stock index futures point to a modestly lower Wall Street start on Thursday following a news report that Chinese officials doubt the prospects for a long-term trade deal with the US

The weaker tone comes a day after the S&P 500 hit record highs following the Federal Reserve's decision to cut interest rates for the third time this year, while signaling it would pause before taking any further monetary policy.

How are the main indices performed?

Dow Jones Industrial Average Futures

YMZ19, -0.1

5%

decreased by 75 points, or 0.3%, at 27 062, while the S&P 500 futures

ESZ19, -0.18%

traded down 9.05 points or 0.3% to trade at 3.038.75. Nasdaq-100 futures

NQZ19, -0.07%

dropped by 14.75 points, or 0.2%, at 8 096.25.

Stocks rose Wednesday during Federal Reserve Chairman Jerome Powell's press conference with the S&P 500 press conference

SPX, + 0.33%

finishing the day at 9.88 points, or 0.3%, at 3,046.77 – a record close. The Dow Jones industrial average

DJIA, + 0,43%

rose 115,27 points or 0,4% to close 27 186,69, leaving it 0,6% far from its record closing on July 15. Nasdaq Composite

COMP, + 0.33%

closed at 8,303.98, above 27.12 points, or 0.3% – 0.3% from its record high of July 26.

What is driving the market?

Chinese officials have expressed doubts about the ability to reach a comprehensive long-term trade deal with the US, despite progress towards a first-phase agreement, Bloomberg announced on Thursday. The report says Chinese officials have concerns about President Donald Trump's impulsive nature and fear he may even abandon the limited deal that both Beijing and Washington have signaled they want to enter in the coming weeks.

On Wednesday, the Fed, as expected, lowered for the third time the base rate for so many meetings on Wednesday, but signaled that it could pause before making further changes to its monetary policy settings to see if these steps will be sufficient to sustain economic expansion.

"for investors it was that while the Fed wants to pause, it will still reduce rates if something unfavorable happens until it raises them, even if the economy picks up steam – which was enough to drive the likes of S&P 500 to new record highs, "says Marios Hadjikiriakos, an investment analyst at XM.

Apple third quarter earnings

AAPL, -0.01%

and Facebook

FB, -0.56%

were also well received at the end of Wednesday as the corporate reporting season ended.

The Economic Calendar on Thursday contains the weekly US unemployment claims for the week ending October 26, along with the third quarter's Employment Expenditure Index and September Indices on Personal Income, Consumer Expenditure and Core Inflation for Personal Consumer Expenditure – reading Fed Fed Inflation,

Economists surveyed by MarketWatch forecast employment costs rose 0.7% in the third quarter, up 0.6% over the previous three months. Personal income and expenditure are also expected to grow by 0.3%, while inflation is expected to rise by 0.1%.

Which companies are in focus?

Investors also responded to a number of earnings reports that came out after the bell closed on Wednesday.

Apple

AAPL, -0.01%

reported third-quarter earnings, down 3%, but beat analysts' expectations while iPhone sales fell 9%, but stocks were 1.8% in pre-sale action after the handset maker provided a great holiday forecast.

Read: The iPhone trading program thrives and saves Apple's profits

Need to know: These neglected technology companies are more exciting than Apple, says ex-

FB, -0.56%

BlackRock shares

Facebook Inc.

rose 3.9% after announcing third quarter results that beat profit forecasts and exceeded revenue expectations. [19659002] Opinion: Zuckerberg stands defiantly in political ads, waving "free expression" to critics like the hammer

Stocks of Starbucks Corp.

SBUX, + 0.07%

gained 2.2% after the coffee chain reported fourth-quarter fiscal results that saw revenue and sales at the same stores increase after its summer beverage launch Nitro Cold Brew.

The flow continued on Thursday with results prior to the opening of the bell of heavy weights, including DuPont de Nemours, Inc.

DD, -2.60%

the shares of which increased by 1.1% in the pre-sale share after the material company reported a 26% drop in profit in the third quarter, less than analysts expected.

Bristol-Myers Squibb Co.

BMY, + 1.97%

also had to report before the bell on Thursday.

Kraft Heinz Co.

KHC, + 1.28%

stock rallied 5.2% before trading on Thursday after the food company reported third-quarter earnings and sales that exceeded expectations.

Coffee & Donut Chain Dunkin Brands Group Inc.

DNKN, -0.56%

said profit had increased for its third quarter, as revenue had increased a year earlier. The company's shares rose 0.9% on the pre-sale share.

The shares of Marathon Petroleum Corp.

MPC, -2,69%

were up 0.5% in market trading after the energy company reported profits that beat expectations but missed revenue while announcing plans to close the business his at Speedway and that his longtime CEO plans to retire.

Shares in Twitter Inc.

TWTR, + 0.03%

were also in the spotlight on Thursday, with 1.8% in premarkets, a day after the social media company said it would ban most political ads from its services.

Fiat Chrysler Automobiles NV

FCAU, + 5.27%

FCA, + 8.28%

shares jumped 9% in Italy, while Peugeot SA [19659058] UG, -12.90%

shares fell more than 12% in Paris after the two companies said they would merge in a 50-50 merger.

How are other markets traded?

Yield for the 10-year US Treasury Note

TMUBMUSD10Y, -2.27%

fell 5.8 basis points to 1.736%.

In the commodity markets, the price of crude oil from West Texas

CLZ19, -1.16%

for December delivery fell 43 cents, or 0.8%, to $ 56.62 a barrel. The value of an ounce of gold for delivery in December

GCZ19, + 0.94%

increased $ 13.40, or 0.9%, to $ 1,510.10. Meanwhile, the US dollar is down 0.4% on the dollar index.

DXY, -0.38%

In Asia, overnight stock stocks are traded mixed, with Chinese CSI 300

000300, -0.11%

drop 0.1%, Nikkei 225

NIK, + 0.37%

Add 0.4% and Stoxx Europe 600

SXXP, -0.26%

decreased by 0.4%.


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