Wall Street Struggles With Trade and Emerging Markets

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Stock futures were trading sharply lower ahead of Tuesday's opening bell with another sell-off in emerging markets coupled with the still unresolved trade deal with Canada weighing on Wall Street.

Investors were also nervously eyeing any potential retaliation from China with the Sept. 5 "public comment period" looming, after which $200 billion in tariffs on Chinese imports goes into effect. Consequently, industrial and material stocks were taking the brunt of Tuesday's losses.

Overseas markets were mixed with China and Hong Kong posting significant gains only to see the goodwill dissolve in Europe where trade issues and extended losses in emerging market currencies resulted in deep losses across the EU.

Related markets did not reflect the risk aversion in the US with gold and silver lower and Treasury yields higher. Oil futures were gaining ground as preparations for Hurricane Gordon in the Gulf of Mexico drove West Texas intermediate to its highest level since July.

In corporate news, shares of Dow component Nike ( NKE ) were underwater in response to the company's decision to use controversial athlete Colin Kaepernick in a new "Just Do It" ad. Facebook ( FB ) shares are also trading lower as the stock was downgraded to neutral from buy at Moffett Nathanson.

On the economic front, the final manufacturing purchasing manufacturers index for August is expected to decline to 54.5 from 55.3, while the comparable index from the Institute for Supply Management is also expected to decline to 57.6 from July's 58.1. At 10 am ET, construction spending should have improved 0.4% in July.

-Dow Jones Industrial down 0.30%

-S&P 500 futures down 0.17%

-Nasdaq 100 futures down 0.30%


Nikkei down 0.05%

Hang Seng up 0.94%

Shanghai Composite up 1.10%

FTSE-100 down 0.53%

DAX-30 down 1.30%


(+) Large cap tech: Higher

(+/-) Chip stocks: Mixed

(-) Software stocks: Lower

(+) Hardware stocks: Higher

(+/-) Internet stocks: Mixed

(+) Oil stocks: Higher

(-) Biotech stocks: Lower

(-) Drug stocks: Lower

(-) Financial stocks: Lower

(-) Retail stocks: Lower

(-) Industrial stocks: Lower

(+/-) Airlines: Flat

(-) Autos: Lower


(+) ORIG (+16.25%) To be acquired by Transocean ( RIG ) for $2.7 billion in cash and stock

(+) CHEK (+9.93%) Reported "promising results" in cancerous polyp detection system

(+) CRON (+10.93%) Announced partnership with Ginkgo Bioworks for cultured cannabis products

(+) CONN (+7.32%) Q2 results beat expectations


(-) TAHO (-14.24%) Guatemalan mine remains shut-down following court decision

(-) WPP (-7.00%) Reported disappointing 2018 interim results

(-) RIG (-2.23%) To acquire Ocean Rig ( RIG ) in cash and stock

(-) ING (-1.09%) Agreed to settle money laundering case for $900 million

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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