Markets

Wall Street Sees Another Round of Losses as Trade Tensions Resurface After Arrest of Huawei Exec

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US stocks were set for another round of losses Thursday amid fresh concerns about the ongoing trade dispute between the US and China after the arrest of a high-ranking official of Chinese digital device maker Huawei.

Oil prices nudged lower with global benchmark Brent crude down 2.16% and US West Texas Intermediate crude down 2.53% recently after a Saudi official signaled that major producers have yet to reach an agreement on the proposed output cuts.

Data released at 8:15 am showed ADP's private payroll estimate in November came in at 179,000 against 175,000 consensus and October estimate of 227,000, according to data compiled by Econoday.

At 8:30 am, trade deficit widened to $55.5 billion for October from the prior month's $54 billion deficit. New unemployment claims fell 3,000 to 231,000 in the Dec. 1 week. The second estimate for Q3 non-farm productivity came in at a 2.3% increase, in-line with expectations, versus the first estimate of a 2.2% increase. Unit labor costs came in at 0.9% build versus estimates for 1.1% build and previous reading of a plus 1.2%.

At 9:45 am, the PMI services index is seen coming in at 54.4 for November versus the previous level of 54.8.

At 10 am, forecasters see factory orders falling 2% in October. The ISM nonmanufacturing index is seen at a consensus of 59.0 in November versus 60.3 in October.

Federal Reserve Chair Jerome Powell is scheduled to speak at a housing conference in Washington, DC.

In equities, shares of Momo ( MOMO ) were trading 11.1% lower pre-bell even after the company reported Q3 results that met Street expectations.

U.S. PRE-MARKET INDICATORS

-Dow Jones Industrial down 1.64%

-S&P 500 futures down 1.47%

-Nasdaq 100 futures down 1.87%

-Nasdaq 100 pre-market indicator down 1.52%

GLOBAL SENTIMENT

Nikkei down 1.91%

Hang Seng down 2.47%

Shanghai Composite down 1.68%

FTSE-100 down 2.51%

DAX-30 down 2.56%

PRE-MARKET SECTOR WATCH

(-) Large cap tech: unchanged to lower

(-) Chip stocks: lower

(-) Software stocks: lower

(-) Hardware stocks: unchanged to lower

(-) Internet stocks: lower

(-) Oil stocks: lower

(-) Biotech stocks: unchanged to lower

(-) Drug stocks: lower

(-) Financial stocks: lower

(+/-) Retail stocks: mixed

(+/-) Industrial stocks: mixed

(-) Airlines: unchanged to lower

(-) Autos: unchanged to lower

UPSIDE MOVERS

(+) TST (+29%) To sell The Deal, BoardEx units for $87.3 million

(+) VBIV (+27.9%) Enters into license, collaboration deal with Brii Biosciences

(+) EARS (+10.9%) Secures orphan drug status, rights to in-license additional patents related to Betahistine

DOWNSIDE MOVERS

(-) AAPL (-2.2%) Report says Google and Amazon will be launching competitors to Apple's Airpods

(-) AVA (-15.4%) Washington regulators deny Avista-Hydro One deal

(-) APHA (-11%) Sets up special committee to review LatAm Holdings acquisition

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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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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