Dow futures drive lower than China-U.S. trade negotiations are underway

U.S. stocks on Tuesday were seen slipping for another increase in a row as investors focused on US-China trade talks, with recent developments making it unclear that a major resolution could be reached soon.

How are the results doing?

Futures for the Dow Jones Industrial Average

YMZ19, -0.64%

was down 191 points, or 0.7%, to 26247, those of the S&P 500

ESZ1[ads1]9, -0.57%

dropped 20 points, or 0.7%, to 2,917, while Nasdaq-100 futures withdrew

NQZ19, -0.56%

49 points to reach 7.690.25, a decrease of 0.7%.

Monday, Dow

DJIA, -0.36%

fell 95.70 points, or 0.4%, to close at 26,478.02, while the S&P 500 index

SPX, -0.45%

gave up 13.22 points, or 0.5%, to end at 2,938.79. Nasdaq Composite Index

COMP, -0.33%

lost 26.18 points, or 0.3%, to finish at 7,956.29.

What is it that drives the stock market?

Wall Street's focus on US-China trade relations has been increased this week as discussions between lower-level officials led to higher-level delegates 10-11. October, is the Start.

However, recent developments this week have made it difficult for investors to expect a sweeping tariff agreement between the world's largest economies to be achieved soon, with an import duty to be implemented for Chinese goods of $ 250 billion to 30% from 25% set to to take effect October 15.

Late Monday, the US 28 Chinese companies blacklisted because of their alleged role in human rights violations against Muslim minorities ahead of high-level discussions that will be led by China Vice Premier Liu He on Thursday.

Bloomberg also reported that the Trump administration is continuing discussions about possible restrictions on capital flows to China, with a particular focus on investments made by US state pension funds.

"Investors seem to be reluctant to assume a clear direction ahead of the high-level trade negotiations between US and Chinese officials on Thursday and Friday," wrote Charalambos Pissouros, senior market analyst at the JFD Group brokerage.

In US economic data, wholesale costs for US goods and services had the steepest decline in September since the first month of the year, reflecting largely lower gasoline prices, signaling that inflation is likely to remain low. The producer price index fell 0.3% last month, and the rise in wholesale inflation over the past 12 months slipped to 1.4% from 1.8%, marking the lowest level in nearly three years. A more followed measure that removes volatile food, energy and trading margin costs fell to 1.7% from 1.9% from the previous year. The low inflation rate has given the Federal Reserve room to cut interest rates to try to protect the US economy from damage related to the ongoing trade war with China.

Shares to Look at

Domino's Pizza Inc .

DPZ, + 0.03%

slipped 4% in premarket trading on Tuesday, after the company posted lower-than-expected earnings for the third quarter. Revenues were also below analysts' forecasts.

Boeing

BA, + 0.22%

was sued by the union representing pilots at Southwest Airlines. The pilots claim Boeing accelerated the now grounded 737 Max jet to the market and misrepresented the aircraft as safe, but Boeing said the suit is unprecedented.

Oracle

ORCL, -0.62%

plans to hire 2000 new workers as part of a plan to expand cloud computing services to more companies in competition with Amazon Web Services and Microsoft. [19659007] Alibaba

BABA, -1.19%

JD.com

JD, -0.48% ,

Baidu

BIDU, -2.87%

Chinese corporations in the United States may come under pressure, after reports that the White House is considering limits on Chinese equity holdings in public pension funds. [19659002] How do other markets trade?

The US Treasury yield fell Tuesday after the Trump administration placed several Chinese technology companies on a blacklist ahead of the trade negotiations at the end of the week. The return on the 10-year US Treasury

TMUBMUSD10Y, -2.73%

slipped 2 basis points to 1.53% early Tuesday ..

Gold for delivery in December

GCZ19, + 0.43%

fetched $ 2.10 per gram, or 0.1%, to trade at $ 1506.50 per gram on Comex after settling at $ 1,504 , 40 on Monday.

West Texas Intermediate Crude Oil for November Delivery

CLX19, -0.91%

traded up 0.2% to $ 52.64 a barrel, early Tuesday.

In Asian trade night to Tuesday, Hong Kong's Hang Seng Index

HSI, + 0.28%

increased 0.3% to 25,893.40, China CSI 300

000300, + 0.61%

got 0.6%, and Japan's Nikkei 225

NIK, + 0.99%

increased 1%. Stoxx Europe 600

SXXP, -0.80%

drops 0.8%.

Related: European stocks lower China concerns and LSE stumbles