Stock Futures Trade Lower as US Politics Dominate the Headlines
New York (Feb 6) Stock futures traded lower Monday as politics and potential policy moves from Donald Trump continued to dominate the headlines.
S&P 500 futures fell 0.02%, Dow Jones Industrial Average futures declined 0.02%, and Nasdaq futures dropped 0.05%.
The Dow Jones Industrial Average closed above the 20,000 level for the first time in a week on Friday as the financials sector led the charge. Banking stocks including Goldman Sachs (GS) and JPMorgan (JPM) moved higher after the president signed an executive order aimed at easing financial regulations. The Dow closed at 20,071, while the Nasdaq hit a new record close at 5,666.
Trump's executive order that banned immigrants from seven majority-Muslim countries from entering the U.S. also will continue making waves. A federal appeals court on Sunday denied the Trump administration's request to set aside a Seattle judge's ruling that put a hold on the ban nationwide.
Apple (AAPL) , Alphabet's (GOOGL) Google, Facebook (FB) , Microsoft (MSFT) , Netflix (NFLX) , Twitter (TWTR) and a number of other tech companies filed legal briefs on Sunday with a federal appellate court that said Trump's immigration ban damages their businesses. The briefing said the executive order leads to increased costs, makes the companies less competitive internationally, and hinders their ability to hire qualified talent.
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Tiffany (TIF) shares fell nearly 7% in premarket trading as the company announced that CEO Frederic Cumenal would resign immediately, less than two years after he assumed the position. Board Chairman and previous Tiffany CEO Michael J. Kowalski will serve as interim CEO. The company also maintained its annual financial forecasts.
"The Board is committed to our current core business strategies, but has been disappointed by recent financial results," Kowalski said in a statement. "The Board believes that accelerating execution of those strategies is necessary to compete more effectively in today's global luxury market and improve performance."
Toyota (TM) reported a sharp drop in quarterly profit because of a stronger yen. It did, however, increase its guidance for the year and said to boost earnings it would focus on production of trucks and sport-utility vehicles.
Newell Brands (NWL) earned 80 cents a share on an adjusted basis in the fourth quarter, matching analysts' estimates. The company said it expects 2017 earnings above its initial forecasts.
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Toymaker Hasbro (HAS) reported fourth-quarter adjusted earnings of $1.64 a share, beating forecasts of $1.27. Revenue of $1.63 billion also topped Wall Street forecasts. The stock rose 5.8% in premarket trading.
Source: TheStreet
