Stock futures moved loweron Wednesday morning, setting up equities for more losses following their worst day of the year a day earlier.
S&P 500 futures were down 0.09%, Dow Jones Industrial Average futures slid 0.2%, and Nasdaq futures fell 0.07%.
Patience with the slow progress of health care and financial reforms wore thin on Tuesday, sending stocks spiralling to their worst losses of the year. Uncertainty over when and how the Trump administration will implement regulatory reform spooked the financial sector, in particular.
"There's a degree of uncertainty over the extent and magnitude and timing of any regulatory reform that the Trump administration plans to put forward -- so far they've just punted," Cathy Seifert, director of financial institution research at CFRA Research, said in a phone call. "If [health care reform] is an indication of how regulatory reform is going to go, we've got a lot of headaches ahead of us."
The passage of the Republicans' health care bill looks tenuous as a number of GOP lawmakers withhold their support ahead of a House vote on Thursday. Donald Trump headed to Capitol Hill on Tuesday for a closed-door meeting to make the case for his Obamacare repeal and replace bill. Trump reportedly told lawmakers that their seats would be on the line in 2018 if they didn't back the bill.
However, as of Tuesday evening, at least 27 Republicans have either said they will vote against the American Health Care Act bill or are leaning toward voting against the bill, according to NBC News. Republicans can afford to lose just 21 votes from their party.
Speaker Paul Ryan's bill, designed to replace the Affordable Care Act, has been widely criticized on both sides of the aisle. The Congressional Budget Office calculated that 24 million more people will be uninsured by 2026 under the Republicans' bill, including 14 million more by 2018. Premiums are expected to jump 20% in the individual market in 2018 and 2019.
Dow component Nike (NKE) - Get Report slumped 4% in premarket trading following weaker-than-expected guidance. The athletic apparel company reported worldwide futures orders, a measure of future sales, fell 4% and that it anticipates current-quarter sales growth in the mid-single-digit percentages. CEO Mark Parker said online shopping trends have made for a more competitive environment.
Crude oil prices fell again on Wednesday, compounding heavy losses seen a day earlier. Prices have been under pressure on signs of ballooning U.S. stockpiles and an uptick in global production. Weekly data on Friday showed another increase in oil-drilling rig activity in the U.S. Data on domestic inventories will be released mid-morning.
West Texas Intermediate crude was down 1.5% to $47.50 a barrel on Wednesday morning.
FedEx (FDX) - Get Report increased 2% in premarket trading despite shipping fewer parcels over the holiday season that it had anticipated. Adjusted earnings fell to $2.35 a share over its fiscal third quarter from $2.51 a share a year earlier. Analysts anticipated earnings of $2.62 a share. CEO Alan Graf said on a conference call that the company had "provided capacity that went unused." Margins fell over the quarter.
"Our historical operating results indicate substantial doubt exists related to the company's ability to continue as a going concern," Sears said in the annual report for the fiscal year ended Jan. 28.
Unless the company raises $2 billion this year, there is a strong likelihood it will be forced to file for bankruptcy protection. Fitch said in February that the restructuring risk for Sears remains "high" over the next two years. Sears is also in the process of closing 150 under-performing Sears and Kmart stores.
Sears shares slumped more than 5% before the bell.
Snap (SNAP) - Get Report rose more than 1% in premarket trading after receiving its second buy rating from an analyst firm a day earlier. The disappearing message app received a buy and $30 price target from Drexel Hamilton, which said the company should "not be pigeonholed in a particular industry, or investors risk missing the forest for the trees."
Akzo Nobel (AKZOY) shares fell sharply Wednesday after the Dutch paints and chemicals company rejected a second takeover approach fromPPG Industries (PPG) - Get Report that valued the group at $24.1 billion. Akzo Nobel said the second bid of €88.72 a share consists of €56.22 in cash and 0.331 a PPG share and was put to the company on Monday. The second bid values Akzo Nobel at €22.38 billion ($24.1 billion) but does not "reflect the current and future value of Akzo Nobel," the company said, and also "neglects to address the significant uncertainties and risks for shareholders and other stakeholders."
Wall Street Goes to Washington: In the first of a series of conversations with the President's economic advisors, acclaimed author and columnist Michael Wolff will sit down with Anthony Scaramucci, co-founder of private equity firm Skybridge Capital, to discuss the Trump administration, his thoughts on policies and regulations under debate and his outlook for the next four years. Join us for this cocktail party on Monday, March 27 at The Metropolitan Club in New York. The event is free, but seating is limited and reservations are required. For more information or to RSVP, email email@example.com.