Tuesday November 27th


Dow set to fall 150 points as Apple slides on possible iPhone tariffs

U.S. stock index futures fell ahead of Tuesday's open as President Donald Trump's comments cast doubt about a deal being struck on U.S.-China trade. Around 8:30 a.m. ET, Dow Jones Industrial Average futures dipped 117 points, indicating a decline of 150.24 points at the open. Futures on the S&P 500 and Nasdaq 100 futures also signaled declines at the open. In an interview with the Wall Street Journal, Trump said that it was "highly unlikely" that the U.S. would delay from a tariffs increase to 25 percent, in regards to $200 billion worth of Chinese goods. Trump went onto suggest that a 10 percent tariff on laptops and iPhones imported from China could be imposed. The president's comments come ahead of an all-important summit between leaders of the G-20, which includes both Trump and China's Xi Jinping. Shares of Apple dropped 2 percent in the premarket, along with other popular tech stocks like Facebook, Amazon, Netflix and Google-parent Alphabet. Dow member United Technologies shares bucked the negative trend in the premarket, rising more than 1 percent after the company announced Monday evening it will split up its aerospace, elevator and air-conditioning businesses. The company said it expects the separation to be completed by 2020. The moves in U.S. futures come after Wall Street finished Monday's session sharply higher, with the Dow Jones industrial average closing more than 350 points higher. Looking overseas, markets appear somewhat cautious with Asia closing mostly in the black, with Europe trading slightly lower. Elsewhere, a number of the U.S. Federal Reserve members are expected to deliver remarks on Tuesday. At the three-day Clearing House and Bank Policy Institute annual conference in New York, Fed Vice Chairman Richard Clarida is scheduled to deliver keynote remarks, while later on today, three Fed presidents will take part in a panel which will discuss a range of topics including the economy and the future of payments. The event comes a day before Fed Chair Jerome Powell is due to participate in luncheon at the Economic Club of New York. Meanwhile, the latest S&P Corelogic Case-Shiller home price index is slated to come out at 9 a.m. ET, followed by consumer confidence figures at 10 a.m. ET. Asia markets traded mostly higher on Tuesday as investors wait for a crucial meeting between President Donald Trump and Chinese leader Xi Jinping. Japan's Nikkei 225 rose 140.40 points, or 0.64 percent, to 21,952.40 while the Topix index added 11.96 points, or 0.73 percent, to 1,644.16. South Korea's Kospi advanced 16.40 points, or 0.79 percent, to 2,099.42. Greater China markets finished Tuesday's session mixed. The Taiex, which measures the performance of aggregate listed stocks on the Taiwan stock exchange, closed up 13.26 points, or 0.14 percent, at 9,778.62, after being down 0.7 percent earlier in the day. Hong Kong's Hang Seng Index was trading lower by about 0.45 percent in the late afternoon. Chinese mainland markets gave up some of their gains before market close, with the Shanghai composite finishing fractionally lower at 2,574.68 and the Shenzhen composite adding 5.74 points, or 0.43 percent, to 1,336.67. Oil prices steadied on Tuesday, depressed by record Saudi production but supported by expectations that oil exporters would agree to cut output at an OPEC meeting next week. Brent crude oil was down 11 cents a barrel at $60.37, hovering above a 13-month low of $58.41 reached on Friday. U.S. light crudefell 21 cents to $51.42. Gold hit a one-week low on Tuesday, following a rally in the dollar after U.S. President Donald Trump warned of higher tariffs on all imports from China ahead of a meeting with his counterpart Xi Jinping. Spot gold inched 0.15 percent higher to $1,224.09 per ounce after touching its lowest since Nov. 19 at $1,219.04. U.S. gold futures were up 0.1 percent at $1,224.70 an ounce. Trump is expected to meet Xi to discuss the trade dispute at the G20 Summit in Argentina this week.