Stock futures pointed to a negative open on Tuesday amid questions over whether the U.S.-China trade agreement will resolve the two countries’ dispute in the long term.
At around 4:30 a.m., Dow Jones Industrial Average futures were trading 157 points lower, implying a negative open of -153 points. S&P 500 and Nasdaq futures were also in the red.
The U.S. and China over the weekend agreed at the G-20 summit in Argentina to hold off on any additional tariffs on each other’s goods on January 1, in order to allow trade talks to continue.
But discrepancies over when that truce would begin has led to confusion. While President Donald Trump’s economic advisor, Larry Kudlow, told reporters Monday that the cease-fire would start from January 1, the White House later issued a corrected statement saying that the 90-day truce period would start on December 1.
The U.S. and China have been engaged in a tense sparring match over trade, with both countries hitting each other’s economies with levies on imported goods. Trump’s administration has so far slapped tariffs on $250 billion worth of Chinese imports, while Chinese President Xi Jinping’s government has imposed tariffs on $110 billion in U.S. goods.
Amid doubts over whether the two can prevent further escalation to the trade war, Treasury Secretary Steven Mnuchin on Monday told CNBC that he is “very hopeful” the two countries can turn the trade truce into a “real agreement.”
On the earnings front, AutoZone, Dollar General and Toll Brothers are reporting results before the bell, while Hewlett Packard Enterprise and MongoDB post their financials after the bell.
In terms of economic data, Redbook sales figures are due at 8:55 a.m. ET. Meanwhile, New York Federal Reserve President John Williams is due to give a speech on tightness in the labor market at 10 a.m. ET.