Reuters: Wall Street to open lower as Cohn's exit adds to trade war fears7 March 2018 | 16:43 | FOCUS News Agency
Manufacturing giants Boeing (BA.N) and Caterpillar (CAT.N) slipped 2 percent in premarket trading, while General Electric (GE.N) dipped 0.7 percent after Deutsche Bank analysts warned of the potential impact from Trump’s planned tariffs on steel and aluminum.
“It’s more of the same jitters we had seen recently, with investors in this case fearing that a lack of confidence in the tariffs by Trump’s own people,” said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey.
“Investors are taking risk off the table to see how much more damage in the administration this will cause.”
Futures pared some losses after the ADP’s National Employment Report showed that private employers added 235,000 jobs in February, compared with Reuters estimate of 195,000.
A more comprehensive report that includes hiring in both public and private sectors is due on Friday.
By 8:59 a.m. ET, Dow e-minis 1YMc1 were down 252 points, S&P 500 e-minis ESc1 fell 18.75 points and Nasdaq 100 e-minis NQc1 declined 40.75 points.
Cohn, the architect of the tax overhaul enacted in December, resigned on Tuesday, a move that came after he lost a fight over Trump’s plans for hefty import tariffs.
Cohn, a former president and chief operating officer of investment bank Goldman Sachs, was seen as a stabilizing force within the Trump administration.
The Federal Reserve will publish its Beige Book, a compendium of anecdotes on the health of the economy, in the afternoon. The Fed’s next policy meeting is scheduled for March 20-21.
Among other stocks, discount store operator Dollar Tree (DLTR.O) slumped 12 percent after reporting disappointing holiday quarter results.
Abercrombie & Fitch Co (ANF.N) jumped 5 percent after the teen fashion retailer beat analysts’ estimates for holiday quarter sales at established stores.
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