Wall Street braced for the next phase of Trump rates

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, USA, September 11, 2018. REUTERS / Lucas Jackson
Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York
Thomson Reuters

From Shreyashi Sanyal

(Reuters) – American stock exchanges would open lower on Monday, with Apple and chipmakers who were suffering badly from expectations. President Trump will make up for the threats of setting new rates on $ 200 billion of Chinese goods and Beijing will take revenge.

A senior official told Reuters on the weekend that Trump would announce the new rates on Monday, while a widely read Chinese tabloid warned that China would not be content to play defense alone.

Futures indicated a slight fall in all three major US markets at the opening, with the technically heavy Nasdaq the bigger loser.

"Investors are slowly beginning to realize that these new rates can make the supply chain very disruptive," said Art Hogan, chief market strategist at B. Riley FBR in New York.

Apple fell by 0.9 percent in the trade on the premarket. The iPhone maker had previously said that the rates could reach a "wide range" of his products.

Chipmaker Micron fell by 2.1 percent, while Intel shares fell by 0.2 percent last. Stocks in Advanced Micro Devices were the most traded before the bell, down 2 percent.

At 9.10 am ET Dow e-mini's were 24 points behind, or 0.09 percent. S & P 500 e-minis fell by 3.5 points, or 0.12 percent and Nasdaq 100 e-minis fell by 18 points, or 0.24 percent.

Trade-sensitive manufacturers Boeing and Caterpillar also dropped 0.7 percent and 0.9 percent respectively, while Chinese companies lost Alibaba, JD.com and Baidu between 1 and 3 percent.

Shares of Exxon Mobil and Chevron both rose by 0.1 percent as oil prices on delivery problems rose from US sanctions against Iran. [O/R]

Another chipmaker Broadcom was 1.5% higher after the show. Nomura has upgraded its shares based on the expectation that the company would increase its dividend to $ 9 per share.

(Reporting by Shreyashi Sanyal in Bangalore, edited by Patrick Graham)

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