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US STOCKS-Futures fall as Trump speech clouds trade deal hopes

Published 13/11/2019, 13:35
© Reuters.  US STOCKS-Futures fall as Trump speech clouds trade deal hopes
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* Futures down: Dow 0.39%, S&P 0.38%, Nasdaq 0.45%

By Arjun Panchadar

Nov 13 (Reuters) - U.S. stock index futures fell on

Wednesday, a day after the S&P 500 and Nasdaq hit new record

highs, as a lack of clarity on U.S.-China trade relations from

President Donald Trump and escalating tensions in Hong Kong

dampened risk appetite.

Trump on Tuesday dangled the prospect of completing an

initial trade deal with China "soon," but offered no new details

on negotiations, while also threatening to raise tariffs again

if the two sides did not reach an agreement. Trade-sensitive technology stocks had lifted the benchmark

S&P 500 .SPX and Nasdaq .IXIC to all-time highs in the run

up to Trump's speech on Tuesday, but the indexes pulled back

slightly after his address at the Economic Club of New York.

Chipmakers, which get a sizeable chunk of sales from China,

fell in premarket trading. Nvidia Corp NVDA.O , Micron

Technology Inc MU.O , Intel Corp INTC.O and Advanced Micro

Devices Inc AMD.O shed between 0.3% and 0.8%.

Shares of Alibaba Group Holding Ltd BABA.N fell 1.6% and

were set for their worst day in three weeks following reports

that the Chinese e-commerce giant planned to launch a Hong Kong

share sale to raise up to $13.4 billion as soon as Thursday.

Heightened tensions in Hong Kong also dulled sentiment after

police warned violence related to anti-government protests had

reached a deadly level and that the Asian financial hub had been

pushed to the "brink of a total breakdown". Wall Street's main indexes have set new highs this month on

the back of a strong corporate earnings season and hopes of a

trade deal with Beijing to end the damaging 16-month tariff war.

Investor attention now turns to testimony from Federal

Reserve Chair Jerome Powell on the domestic economy on Wednesday

and Thursday as well as fresh economic data, starting with the

consumer price index at 8:30 a.m. ET.

At 7:16 a.m. ET, Dow e-minis 1YMcv1 were down 107 points,

or 0.39%. S&P 500 e-minis EScv1 were down 11.75 points, or

0.38% and Nasdaq 100 e-minis NQcv1 were down 37.25 points, or

0.45%.

Shares of SmileDirectClub Inc SDC.O slumped 8.7% as the

teeth alignment company posted a bigger quarterly loss and

pointed towards more losses for the year. Tech Data Corp TECD.O gained 4.2% after announcing private

equity Apollo Global Management APO.N would buy the U.S.

company in a deal valued at $5.4 billion. China's Luckin Coffee Inc LK.O rose 2.6% as the Starbucks

Corp SBUX.O rival reported a smaller-than-expected loss and

forecast fourth-quarter revenue above estimates. L4N27T2UK

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