NEW YORK, Nov 8 — Wall Street’s main indexes were set to open slightly lower today after a record run this week that was fuelled by rising hopes of a US-China trade truce and an upbeat corporate earnings season.
The S&P 500 and Dow Jones indexes closed at record highs on Thursday after China said both countries would roll back existing tariffs in phases, but a Reuters report on fierce opposition to the agreement at the White House weighed on sentiment.
“We’ve been here before, where whatever information you are getting out of the White House differs from what you are getting out of China,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
“There is a little bit of nervousness because of these cross-currents. After the gains we’ve seen so far, a little bit of back and forth is expected.”
The benchmark index is on track for its best year since 2013, while the Nasdaq and Dow are eyeing yearly gains after dropping in 2018.
Of the 430 S&P 500 companies that have reported results so far, nearly three quarters have beaten profit estimates, according to IBES data from Refinitiv. Those numbers, to some extent, reflect significantly lowered analysts’ forecasts.
Walt Disney Co gained 5.8 per cent in premarket trading as its popular theme parks and a remake of “The Lion King” lifted earnings, and the company also spent less than it had projected on its online streaming service, Disney+.
At 8:45 am ET, Dow e-minis were down 5 points, or 0.02 per cent. S&P 500 e-minis were down 3.75 points, or 0.12 per cent and Nasdaq 100 e-minis were down 15.75 points, or 0.19 per cent.
Among other stocks, Gap Inc tumbled 9.2 per cent after saying Chief Executive Art Peck would leave the company, a surprise exit in the middle of a restructuring that comes as the apparel retailer slashed its full-year earnings forecast.
Zillow Group Inc jumped 9.8 per cent as the real estate website operator sold more homes and more real estate agents advertised on its platform.
Energy drinks maker Monster Beverage gained 4.7 per cent after posting a better-than-expected third-quarter profit and announcing a US$500 million share buyback plan.
Booking Holdings Inc rose 5.1 per cent as the online travel agency topped quarterly profit estimates. — Reuters
