Stock Futures Build on Gains After Trump Promises "Phenomenal" Tax Plan

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Stocks were set to open higher on Friday as investor's appetite for risk was rekindled by President Donald Trump's pledge to lower U.S. corporate taxes, and upbeat Chinese trade data.

After meeting with airline executives on Thursday, Trump said that he was going to unveil a "phenomenal" plan to reduce taxes for U.S. businesses "in two or three weeks", as well as rolling back "burdensome" regulations on the aviation industry. His remarks triggered a rally in the dollar and U.S. equities that drove the benchmark averages to record highs.

China's swelling trade surplus underpinned global stocks as well as exports from the world's second largest economy jumped a better-than-expected 7.9% while imports surged 16.7%.

Oil futures are giving a boost to the energy sector, while higher Treasury yields continues to fuel gains in the banking sector. Dow components JP Morgan ( JPM ) and Goldman Sachs ( GS ) are trading modestly higher in premarket trade.

On the economic front, export prices rose 0.1% in December, matching Wall Street estimates, while import prices rose a better-than-expected 0.4%.

Up next is the preliminary University of Michigan consumer sentiment index for February, forecasted to remain unchanged at 98.5.

-Dow Jones Industrial up 0.15%

-S&P 500 futures up 0.12%

-Nasdaq 100 futures up 0.12%


Nikkei up 2.49%

Hang Seng up 0.21%

Shanghai Composite up 0.42%

FTSE-100 up 0.32%

DAX-30 up 0.19%


(+) Large cap tech: Higher

(+/-) Chip stocks: Mixed

(+/-) Software stocks: Flat

(+) Hardware stocks: Higher

(+) Internet stocks: Higher

(+) Oil stocks: Higher

(+) Biotech stocks: Higher

(+/-) Drug stocks: Mixed

(+) Financial stocks: Higher

(+) Retail stocks: Higher

(+) Industrial stocks: Higher

(+) Airlines: Higher

(+) Autos: Higher


(+) SHLD (+42.78%) Issued a strong revenue forecast, announced plans to cut debt and pension obligations by $1.5 billion

(+) INFN (+13.83%) Q4 results beat Wall Street expectations

(+) SKX (+10.61%) Earnings missed estimates but sales exceeded expectations


(-) TCON (-19.59%) The combination of TRC 105 and Avastin did not improve median PFS vs Avastin alone

(-) ONVO (-16.71%) Reported a narrower than expected loss on below consensus sales. Issued weak sales guidance for FY17

(-) YELP (-11.74%) Earnings beat expectations but issued weak FY17 revenue guidance

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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