Stock Markets3 hours ago (May 01, 2020 06:58AM ET)
By Peter Nurse
Investing.com – U.S. stocks are set to open lower Friday, coming off their best month in decades, as President Donald Trump threatened to reignite a trade conflict with China in retaliation for the coronavirus outbreak.
At 06:55 AM ET (1055 GMT), traded 57 points, or 2%, lower, down 222 points, or 2.5%. The contract fell 451 points, or 1.9%.
Wall Street enjoyed April The gained 11.1%, while the ended up 12.7%, their best monthly gains since 1987 and best April performances since 1938. The booked a monthly return of 15.5%, its best month since 2000 and the best April on record.
Late Thursday, Trump said trade relations with China now had to give way in importance to the coronavirus pandemic and he threatened new tariffs on Beijing who he blames for the spread of the virus,
It was only in January that Trump signed a first phase of a multibillion-dollar trade deal with China, seeking to quell what had become a damaging trade war.
“We signed a trade deal where they’re supposed to buy, and they’ve been buying a lot, actually. But that now becomes secondary to what took place with the virus,” Trump said. “The virus situation is just not acceptable.”
The corporate earnings season continues Thursday, with the oil sector in focus as U.S. giants Exxon Mobil (NYSE:) and Chevron (NYSE:) report before the bell.
Chevron beat on the bottom line and announced it was further cutting capital expenditure to try and protect its dividend yield.
Elsewhere, Amazon (NASDAQ:) stock traded 4.9% lower premarket after stating it would spend its entire second-quarter profit, seen at around $4 billion, on Covid-19 related expenses.
Apple (NASDAQ:) dropped 2.5% premarket after failing to provide an earnings forecast in more than a decade.
United Airlines fell 4.3% premarket after Late Thursday announced a loss of $1.7 billion in the first quarter, due to “the most disruptive global crisis in the history of aviation.”
Boeing (NYSE:) stock dropped 2.4% premarket after raising $25 billion in a bond offering but said it wouldn’t seek federal aid to help bail it out.
Turning to economic data, the April is due at 10:00 AM ET (1400 GMT), and is expected to have dropped to 36.9 last month from 49.1 in March. The index hit a record low below 30 in 1980.
Oil futures retreated Friday, and traders will get some more insight later Friday into how production may be falling in the U.S.
Baker Hughes will issue its oil rig count at 1 PM ET (17:00 GMT). Last week the number of rigs in operation fell to 378 from 438.
At 6:55 AM ET, June futures traded 2.1% lower at $18.45 a barrel. The international benchmark contract fell 2.1% to $25.93.
Elsewhere, fell 0.5% to $1,683.30/oz, while traded at 1.0979, up 0.2%.
Disclaimer: This story is auto-aggregated by a computer program and has not been created or edited by Times Of Asia Publisher: Read More