* GM falls after sale of Opel and Vauxhall ops * Netflix rises after brokerage upgrade * Futures down: Dow 44 pts, S&P 7.25 pts, Nasdaq 14.25 pts (Adds details, comments, updates prices) By Yashaswini Swamynathan March 6 (Reuters) – U.S. stocks looked set to open lower onMonday as rising geopolitical tensions in Asia and PresidentDonald Trump’s accusation that his predecessor Barack Obamawiretapped him weighed on investors’ risk appetite. Some investors worried that the latest development coulddistract Trump from his economic agenda of introducing tax cutsand simplifying regulations, which have powered Wall Streethigher since the election. The S&P 500 and the Nasdaq have risen for six straightweeks, extending a post-election rally that started in November. However, the lack of detail on Trump’s proposals andpolitical tensions surrounding his relationship with Russia haveraised concerns. Investors are focusing more on politics and have become moreselective in what they buy, the Bank for InternationalSettlements said on Monday. “The market is susceptible to short-term swings and choppybehavior predicated on something Trump says,” said Andre Bakhos,managing director at Janlyn Capital in Bernardsville, NewJersey. “Most investors are positive about the Trump administration,however there is caution that something could be said by theadministration that could derail the enthusiasm.” Rising geopolitical tensions in East Asia also weighed afterNorth Korea fired four ballistic missiles. Dow e-minis were down 44 points, or 0.21 percent,with 31,722 contracts changing hands at 8:39 a.m. ET (1339 GMT) S&P 500 e-minis were down 7.25 points, or 0.3percent, with 181,774 contracts traded. Nasdaq 100 e-minis were down 14.25 points, or 0.27percent, on volume of 29,525 contracts. Investors are wary of inflated market valuations. The S&P istrading at about 18 times forward earnings estimates against thelong-term average of 15 times, according to Thomson Reutersdata. A flurry of economic data, culminating with Friday’s nonfarmpayrolls report, will demonstrate the strength of the U.S.economy this week. A Commerce Department report on Monday is expected to showfactory goods orders increased 1 percent in January after a 1.3percent rise in December. The data is due at 10:00 a.m. ET (1500GMT). Among stocks, General Motors fell 1.7 percent to$37.58 in premarket trading after the automaker said it wouldsell its European Opel and Vauxhall operations to France’s PSAGroup. Netflix rose 1.44 percent to $141.08 after UBSupgraded the stock to “buy” from “neutral”. Tyson Foods was down 2.5 percent at $61.65 after astrain of bird flu was detected in a chicken breeder flock on aTennessee farm contracted with the company. (Reporting by Yashaswini Swamynathan and Tanya Agrawal inBengaluru; Editing by Saumyadeb Chakrabarty and SrirajKalluvila)
July 26, 2024
