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Stocks - U.S. Futures Slip Amid Global Trade Tensions

Jun 3, 2019 16:59
© Reuters.

U.S. futures fell on Monday as global trade tensions continued to dampen investors’ risk appetite.

China released a government paper on Sunday, accusing the U.S. of undermining trade negotiations, and warned that a continued tit-for-tat trade war will hurt the global economy.

Meanwhile, Mexico sent a delegation to Washington to start talks after President Donald Trump announced plans to increase tariffs on Mexican goods in order to pressure it into stopping illegal immigration into the U.S. .

Dow futures fell 95 points or 0.4% by 6:44 AM ET (10:44 GMT), while tech-heavy Nasdaq 100 futures lost 41 points or 0.6% and S&P 500 futures was down 10 points or 0.4%.

Amazon.com (NASDAQ:AMZN) fell 0.9% after the Washington Post and New York Times reported that the Department of Justice had agreed to let the Federal Trade Commission lead antitrust scrutiny of the company.

Alphabet (NASDAQ:GOOGL), the parent company of Google, was down 2.9%, after its YouTube, Gmail and Google Cloud services were disrupted on Sunday.

Cruise liner Carnival (NYSE:CCL) fell 0.6% ahead of a federal court ruling on a settlement agreement relating to allegations of environmental offenses.

Boeing (NYSE:BA) slipped 1.4% on reports that some of its 737 planes could have defective parts on its wings.

Carnival was down 0.6% ahead of a federal court hearing in Miami on a settlement agreement relating to alleged environmental offenses.

Elsewhere, Netflix (NASDAQ:NFLX) inched up 0.2%, while semiconductor company Cypress (NASDAQ:CY) jumped 23.8% on news that it is being acquired by German chipmaker Infineon Technologies (DE:IFXGn) in a $10 billion deal, including debt.

Amid fears of a global slowdown, manufacturing PMI data for May is out at 9:45 AM ET (13:35 GMT), while the ISM manufacturing index is released at 10:00 AM ET (14:00 GMT).

Manufacturing data in Asia overnight showed that activity in the region is weakening, while euro zone manufacturing registered its fourth consecutive contraction.

In commodities, crude oil rose 0.8% to $53.95 a barrel, while gold futures gained 0.8% to $1,322.15 a troy ounce. The U.S. dollar index, which measures the greenback against a basket of six major currencies, lost 0.1% to 97.590.