Stock Futures Lower as U.K. Outlines Plans to Exit the European Union

New York (Jan 17)  Stock futures declined on Tuesday morning as U.K. Prime Minister Theresa May outlined long-awaited plans for Britain's exit from the European Union.

S&P 500 futures were down 0.4%, Dow Jones Industrial Average futures fell 0.3%, and Nasdaq futures slid 0.4%.

The U.K. hopes to gain the greatest access to the European Union without being a member of it, May said in a highly anticipated speech on the country's plans for removal from the bloc. May also said she seeks to avoid a "cliff edge" that could prove disruptive and instead intends for the 'Brexit' to come in phases. The eventual deal would be voted upon in both Houses of Parliament.

The FTSE 100 in London declined 0.5%, while the British pound rallied nearly 2%.

Crude oil prices also moved higher on hopes a production freeze agreement among the Organization of Petroleum Exporting Countries would begin to correct a years-long decline in commodities. Saudi Oil Minister Khalid al-Falih reiterated his view that markets would begin to rebalance and stabilize in the first half of this year in response to the agreement that went into effect at the beginning of January.

West Texas Intermediate crude oil was up 1.1% to $52.96 a barrel on Tuesday morning.

Morgan Stanley (MS) rose more than 1% after reporting an 83% surge in quarterly earnings thanks to a year-end boost to trading revenue. Quarterly profit increased to 81 cents a share, up from 39 cents in the same quarter a year earlier and above consensus of 65 cents a share. Sales increased 17% to $9.02 billion, above estimates of $8.47 a barrel.

Source: TheStreet