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US STOCKS-Futures drop as U.S-China trade worries resurface

Published 31/10/2019, 12:33
© Reuters.  US STOCKS-Futures drop as U.S-China trade worries resurface
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* Futures down: Dow 0.28%, S&P 0.30%, Nasdaq 0.16%

By Arjun Panchadar

Oct 31 (Reuters) - U.S. stock index futures fell on Thursday

as uncertainty around a potential trade deal between the United

States and China overshadowed strong earnings reports from Apple

and Facebook.

Chinese officials have doubts about whether it is possible

to reach a comprehensive long-term trade deal with Washington

and U.S. President Donald Trump, Bloomberg reported earlier in

the day, citing unnamed sources. Hopes of a possible trade deal and interest rate cut by the

Federal Reserve have helped the benchmark S&P 500 hit record

high earlier this week.

The U.S. central bank lowered borrowing costs for the third

time this year on Wednesday to help sustain domestic growth

despite a slowdown in other parts of the world, but signalled

there would be no further reductions unless the economy takes a

turn for the worse. Another bright spot has been the third-quarter earnings

season, which has been largely better than expected so far.

Apple Inc AAPL.O rose 2.3% in premarket trading after the

iPhone maker forecast sales for the holiday shopping quarter

ahead of expectations. Facebook Inc FB.O jumped 4.6% after reporting an uptick in

users in lucrative markets and its third straight rise in

quarterly sales growth. On the economic calendar is the core PCE data, the Federal

Reserve's preferred measure of inflation, which is expected to

remained unchanged for the month. The report is due at 8:30 a.m.

At 6:55 a.m. ET, Dow e-minis 1YMcv1 were down 77 points,

or 0.28%. S&P 500 e-minis EScv1 were down 9 points, or 0.3%

and Nasdaq 100 e-minis NQcv1 were down 13 points, or 0.16%.

Among other stocks, Starbucks Corp SBUX.O climbed 2.8% as

the coffee chain topped quarterly same-store sales and revenue

estimates. Twitter Inc TWTR.N dropped 1.8% after the company said it

will ban political advertising on its platform next month.

Ride-hailing company Lyft Inc LYFT.O gained 6.3% as it

posted higher-than-expected quarterly revenue and an improved

outlook showed it was well on its way to profitability by the

end of 2021.

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