US stocks set to open lower amid renewed US-China tensions; Apple to report earnings – CNBC

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US stocks set to open lower amid renewed US-China tensions; Apple to report earnings - CNBC

U.S. stock index futures pointed to a lower open on Tuesday morning as investors monitored global trade developments and looked ahead to earnings releases from companies like Apple.

As of 3:00 a.m. ET, Dow futures traded 70 points lower, indicating a negative open of 90.22 points. S&P 500 and Nasdaq futures were also in the red.

Market focus is largely attuned to global trade developments, after prospects for a long-awaited U.S.-China trade deal were dealt another setback. It comes after Washington leveled sweeping charges against Beijing’s telecom giant Huawei.

The U.S. Department of Justice filed criminal charges Monday against Meng Wanzhou, the chief financial officer of China tech giant Huawei and the daughter of its founder and president Ren Zhengfei.

The news comes shortly before Chinese Vice Premier Liu He is set to meet U.S. officials on Wednesday and Thursday. Market participants fear the jolt to Huawei could undermine the chances of the world’s two largest economies reaching a comprehensive trade deal.

Investors will be waiting for earnings reports on Tuesday. 3M, Biogen, LVMH, Pfizer, Verizon and Harley-Davidson will be reporting before the bell while Amgen, Apple and eBay will update after the bell.

On Monday, Caterpillar stoked fears over Chinese growth with its shares falling 9.1 percent. The industrial giant posted weaker-than-expected earnings for the fourth quarter and said its sales in the Asia/Pacific region declined because of lower demand in China.

In terms of economic data, there will be consumer confidence numbers out at 10 a.m. ET as well as fourth-quarter housing vacancies. The Dallas Fed services numbers will be out at 10.30 a.m. ET.

The Federal Reserve is due to start its two-day meeting Tuesday with a decision on interest rates due Wednesday.

—CNBC’s Sam Meredith contributed to this article.

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