U.S. stock index futures dipped on Tuesday following a partial recovery in the previous session, as renewed worries about a U.S.-China trade war soured risk sentiment.
The U.S. and China on Tuesday began charging additional port fees on ocean shipping firms that move everything from holiday toys to crude oil, reviving trade tensions.
Market Snapshot
At 7:45 a.m. ET, Dow e-minis were down 228 points, or 0.49%, S&P 500 E-minis were down 59.25 points, or 0.89%, and Nasdaq 100 E-minis were down 293.25 points, or 1.18%.
Pre-Market Movers
Big tech stocks fell in premarket trading. Micron down nearly 3%; Super Micro, Tesla, AMD, TSMC, Broadcom, Nvidia, Oracle down around 2%; Palantir, Meta down over 1%.
Rare earth stocks extended recent gains. Critical Metals up 37%; American Resources up 22%; USA Rare Earth, Energy Fuels up over 11%. Chinese rare earth magnet companies have been facing tighter scrutiny on export license applications since September, sources say, even before Beijing's move last week to expand controls over the critical minerals used in magnets.
JPMorgan Chase stock was down slightly after the biggest U.S. bank reported third-quarter earnings of $5.07 a share on revenue of $46.4 billion, beating analysts' forecasts of $4.85 a share on revenue of $45.5 billion.
Wells Fargo reported third-quarter earnings of $1.66, topping estimates of $1.55. Shares of the San Francisco-based bank rose 2.8%.
Goldman Sachs' quarterly profit jumped more than 37% on Tuesday as its investment bankers earned higher advisory fees and traders capitalized on active markets. Shares of Goldman Sachs up 1% after earnings beat.
Johnson & Johnson rose slightly after the healthcare giant reported third-quarter earnings that slightly beat analysts' estimates and announced it would spin off a slower-growing division within its medical devices segment, which makes hip and knee implants. Johnson & Johnson's orthopaedics business accounted for 9.5% of the company's total sales in the third quarter. Johnson & Johnson plans to separate that business into a new company that will operate under the name DePuy Synthes.
BlackRock reported third-quarter adjusted earnings of $11.55 a share, beating analysts' estimates of $11.30. Assets under management at the end of the quarter were $13.46 trillion, up 17% from a year earlier. Shares fell 0.4%.
Ford Motor was down 1.2%. Starting this week, the auto maker is temporarily cutting production of at least five models including the Expedition and Lincoln Navigator following a fire at a key aluminum supplier's plant.
General Motors declined 1.7% after booking a $1.6 billion charge on its electric-vehicle business and pledging to reduce its manufacturing capacity. The company said it expected EV adoption to slow following policy changes "including the termination of certain consumer tax incentives for EV purchases and the reduction in the stringency of emissions regulations."
Domino's Pizza rose 1.9% after the pizza chain posted adjusted fiscal third-quarter earnings that topped forecasts as revenue rose 6.2% to $1.15 billion and also beat expectations of $1.14 billion. U.S. franchises saw same-store sales increase 5.3%.
Ericsson's U.S.-listed shares soared 15% after the Swedish telecommunications company posted better-than-expected third-quarter earnings and suggested it could hike its shareholder payouts. "Solid recurring cash flow and the Iconectiv sale contributed to a strong third-quarter cash position, offering scope for increased shareholder distributions," CEO Börje Ekholm said. The company also announced a five-year deal with U.K.'s Vodafone.
Navitas Semiconductor was up 26%. The chip company reported advances in developing purpose-built power devices to enable chip maker Nvidia's architecture. "As Nvidia drives transformation in AI infrastructure, we're proud to support this shift with advanced GaN and SiC power solutions that enable the efficiency, scalability, and reliability required by next-generation data centers," said CEO Chris Allexandre.
Market News
US, China Roll Out Tit-for-Tat Port Fees, Threatening More Turmoil at Sea
The United States and China on Tuesday began charging additional port fees on ocean shipping firms that move everything from holiday toys to crude oil, making the high seas a key front in the trade war between the world's two largest economies.
China said it had started to collect the special charges on U.S.-owned, operated, built, or flagged vessels but clarified that Chinese-built ships would be exempted from the levies.
In details published by state broadcaster CCTV, China spelled out specific provisions on exemptions, which also include empty ships entering Chinese shipyards for repair.
Fed's Powell Addresses Economy Pulled Between Risks to Growth, Jobs and Prices
Federal Reserve Chair Jerome Powell on Tuesday delivers his last scheduled remarks before the Fed's next meeting with the economy enjoying stronger-than-expected growth and a recent jump in productivity, but still adjusting to tariff and immigration policies that economists worry could lead to both higher inflation and higher unemployment.
Challenging for a central bank responsible for keeping inflation low and employment as high as possible, Powell and his colleagues are also facing a drought of official data amid a U.S. government shutdown that has delayed the September jobs report and other key statistics. An update on consumer prices is now scheduled for October 24, before the Fed's October 28-29 meeting.