Stocks open flat as US midterms loom, Apple falls
U.S. stock futures pointed to a flat open on Monday as investors got ready for the upcoming midterm elections.
As of 8:15 a.m. ET, Dow Jones Industrial Average futures fell 19 points, indicating a loss of 10.83 points. S&P 500 and Nasdaq futures also pointed to flat starts to the session.
Futures also fell as Apple shares dipped nearly 2 percent in the premarket. The tech giant's decline comes after Rosenblatt Securities downgraded Apple amid expectations of lower iPhone sales .
U.S. voters will head to the polls on Tuesday for high-stakes elections that can send ripples throughout capital markets. Democrats are largely expected to regain control of the House, with Republicans forecast to retain a slim majority in the Senate.This outcome is seen as largely positive as, historically, a government has led to solid gains in the stock market.
If the GOP maintains a majority in both chambers, it could give stocks a short-term boost as it increases the likelihood of further tax cuts. Meanwhile, a so-called Democratic sweep could pressure stocks as it could lead to a reversal of some of the policies passed by the GOP to boost the economy.
The Democrats were leading with a 7 point advantage ahead of the contest, according to an NBC News/Wall Street Journal poll released Sunday.
Investors are also grappling with uncertainty on the trade front.
Stocks were hit with a wild bout of volatility during Friday's trading session amid conflicting comments and reports on global trade. Trump's economic advisor Larry Kudlow told CNBC there was "no massive movement to deal with China," contradicting an earlier report that Trump had asked officials to prepare a draft for a U.S.-China trade deal.
On Monday, Chinese President Xi Jinping reiterated his rhetoric against protectionism and commitment to free trade in a speech. Xi said his country was pursuing "a new round of high-standard opening up" to broaden market access to the rest of the world.
In economic data, services PMI and ISM non-manufacturing figures are due to be released today at 9:45 a.m. ET and 10 a.m. ET respectively.
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