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Earlier optimism of trade talks progressing reversed on Tuesday
after U.S. President Donald Trump said he was not pleased with
recent trade talks between the United States and China and also
raised doubts about the upcoming North Korea summit.
The comments tempered expectations that the United States and
China would be able to avert a damaging global trade war.
The Federal Reserve's May meeting minutes, scheduled for release
at 2:00 p.m. ET, will be scrutinized for indications of how many
rate hikes are likely this year.
The U.S. central bank lifted borrowing costs in March and
policymakers are split between those who expect another two rate
hikes this year and those who forecast three, in the backdrop of
low unemployment, moderate growth and rising inflation.
At 7:28 a.m. ET, Dow e-minis <1YMc1> were down 182 points, or
0.73 percent. S&P 500 e-minis <ESc1> were down 16.5 points, or
0.61 percent and Nasdaq 100 e-minis <NQc1> were down 64.5
points, or 0.93 percent.
U.S. 10-year Treasury yields <US10YT=RR> fell to eight-day lows
as investors shunned risk. Twenty-eight of the 30 Dow Jones
Industrial Average <.DJI> components were trading premarket and
all indicated a lower open.
Target <TGT.N> sank 5.6 percent after the retailer's quarterly
profit rose less than expected as increasing investments dented
margins.
Tiffany <TIF.N> jumped 11.7 percent after the jeweler's
quarterly results blew past estimates and the company also
raised its full-year profit forecast and announced a $1 billion
share buyback program.
On the economic front, new home sales numbers for April are
expected to fall to 679,000 units, from 694,000 units the month
before. The data is expected at 10 a.m. ET.
(Reporting by Medha Singh in Bengaluru; Editing by Sriraj
Kalluvila)
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