Stock Futures & Tax Reforms

Global Stock Markets

U.S. stock index futures were marginally lower on Monday as uncertainty over the future of President Donald Trump’s tax reform plan weighed on the sentiment. 

U.S. Senate Republicans have unveiled a new tax plan that differs from the House of Representatives’ version and there are few signs of a compromise.

Hopes of lower taxes, one of Trump’s main campaign promises, have helped drive the S&P 500 up 20 percent since the 2016 presidential election.

Shares of General Electric (GE.N) jumped 2.2 percent after the industrial conglomerate said it would halve its quarterly dividend, a move that is expected to save about $4 billion in cash annually. Chief Executive John Flannery is expected to announce restructuring measures later in the day.

The S&P 500 and the Dow Jones Industrial Average ended the week lower on Friday for the first time in nine weeks.

Philadelphia Federal Reserve President Patrick Harker said on Monday that he expected to back an interest rate hike next month despite caution over low-inflation.

Oil was largely steady near two-year highs, trapped between a bullish push from tension in the Middle East and downward pressure from evidence of rising U.S. production. [O/R]

Toymaker Mattel (MAT.O) jumped about 24 percent after a report that rival Hasbro (HAS.O) has made an approach to acquire the company.

JD.com (JD.O) rose nearly 6 percent as China’s second largest e-commerce firm reported revenue that beat estimates, as the firm attracted more shoppers.

Futures snapshot at 6:56 a.m. ET (1056 GMT):

Dow e-minis 1YMc1 were down 50 points, or 0.21 percent, with 23,218 contracts changing hands.

S&P 500 e-minis ESc1 were down 4 points, or 0.16 percent, with 140,616 contracts traded.

Nasdaq 100 e-minis NQc1 were down 7.75 points, or 0.12 percent, on volume of 26,385 contracts.