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Stocks - U.S. Futures Slump as China Doubts Trade Deal Will Happen 

Published 2019-10-31, 06:42 a/m
© Reuters.
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Investing.com - Futures fell on Thursday after Bloomberg reported that Chinese officials doubt a trade deal with the U.S. will happen.

Officials have blamed U.S. President Donald Trump and his impulsive nature and fear that he could back out even as both signs prepare to sign a deal in the coming weeks. The Chinese have warned that they won’t budge on certain issues, Bloomberg reported, quoting people familiar with the matter.

Nasdaq 100 were down 22 points or 0.3% by 6:41 AM ET (10:41 GMT), while Dow futures fell 90 points or 0.3% and S&P 500 Futures slipped 10 points or 0.4%.

Futures had started in the green after the Federal Reserve cut interest rates by 25 basis points for the third time this year on Wednesday. Chairman Jerome Powell said in a press conference that the central bank will pause on rate cuts for now, unless inflation rises “significantly.”

Starbucks (NASDAQ:SBUX) was up 3.3% in premarket trade after the coffee maker said iced coffee and other cold drinks helped boost same-store sales by 5% globally. Facebook (NASDAQ:FB) jumped 4.7% on continued strong growth in profit and revenue, while Lyft (NASDAQ:LYFT) rose 2.5% as it earnings came in better than expected, with the ride-sharing company losing less money than forecast in the last quarter.

Elsewhere, Western Digital (NASDAQ:WDC) slumped 7.5% after its CEO Steve Milligan said he plans to retire.

In commodities, gold futures rose 0.7% to $1,507.95 a troy ounce, while the U.S. dollar index, which measures the greenback against a basket of six major currencies, was down 0.4% to 97.062. Crude oil futures were down 0.2% to $54.95 a barrel.

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