US pre-open: Stocks seen lower amid worries over tax cut delay

Michele Maatouk WebFG News | 10 Nov, 2017 12:58 | | |

New York Stock Exchange, markets, traders, USA, stocks, shares, Wall Street. Photo: Pete Bellis

US futures pointed to a weaker open on Wall Street on Friday amid concerns that a possible delay in corporate tax cuts until 2019 could put an end to the recent rally in equity markets.

At 1300 GMT, Dow Jones Industrial Average futures were down 0.2%, while S&P 500 and Nasdaq futures were 0.4% and 0.3% lower, respectively. Volumes may be lighter than usual as traders may be off for Veterans Day.

Investors are likely to be focusing on the fact that the Senate Finance Committee unveiled its version of the draft tax bill on Thursday, which includes a proposal to defer a cut in corporate tax to 20% until 2019, rather than next year as suggested by the House.

IG analyst Chris Beauchamp said: “The twists and turns in Congress regarding the administration’s tax plan are hard to follow, but the overall impression is that we won’t get much progress on reform before the Thanksgiving recess begins. For a market that had invested great hope in the plan, this is a heavy blow. The rally had been looking increasingly precarious, as breadth deteriorated over the past week, with yesterday’s drop an inevitable consequence of underlying weakness.”

In corporate news, department store chain JC Penney rallied in pre-market trade after it posted a bigger-than-expected jump in quarterly same-store sales.

Dynavax shares rocketed after the company’s hepatitis B vaccine won approval from the US Food and Drug Administration approval on its third attempt.

Altice USA shares surged on news that chief executive, Dexter Goei, will assume the CEO role at parent Altice NV amid a major management reshuffle.

Graphic chip maker Nvidia was on the front foot after its quarterly numbers late on Thursday beat analysts’ expectations, while rental car group Hertz Global rose in pre-market trade after better-than-expected earnings.

On the data front, the Michigan consumer sentiment index is at 1500 GMT.

More news

09:00 Quiz posts 35% jump in revenue in first results since IPO

In its first trading update as an AIM-listed company, fashion brand Quiz reported a 35% jump in interim revenue, driven by growth across all of its channels.

08:54 Thomas Cook tumbles as weak UK overshadows results

Thomas Cook said it was on track to meet expectations this year but problems in the UK, the tour operator’s biggest market, overshadowed its annual results.

08:42 London open: Stocks edge up ahead of Budget; Thomas Cook tanks

London stocks edged tentatively higher in early trade on Wednesday as investors sifted through corporate releases ahead of the Autumn Budget.

08:04 Sage completes cloud transformation and promises 2018 acceleration

Sage Group kept revenue growth and margins above their annual target and said the launch of its Business Cloud software suite would enable it to "accelerate momentum" in 2018.

08:04 SSP full-year profit up, announces £100m special dividend

SSP reported a rise in full-year profit on Wednesday as it announced a special dividend of around £100m, but said that like-for-like revenue growth next year is expected to drop slightly.

07:49 Countryside Properties operating profit, completions up amid strong demand

Housebuilder and regeneration partner Countryside Properties posted a rise in annual operating profit on Wednesday as revenue and completions grew amid strong demand.

07:47 United Utilities profit rises 10% in first half

United Utilities profit rose 10% in the first half as the water and waste management company increased revenue and cut costs.

07:44 Hammerson offloads stake in Strasbourg Place des Halles, United Utilities profit ahead in first half

London open

07:38 London pre-open: Stocks to nudge up ahead of Autumn Budget

London stocks were set to nudge up at the open on Wednesday as investors eyed the Autumn Budget.

07:29 Wednesday newspaper round-up: Uber hack, Hinckley Point, LSE

Uber concealed a massive global breach of the personal information of 57 million customers and drivers in October 2016, failing to notify the individuals and regulators, the company acknowledged on Tuesday. Uber also confirmed it had paid the hackers responsible $100,000 to delete the data and keep the breach quiet, which was first reported by Bloomberg. – Guardian