Stock futures are signaling a sharp pullback following theresignation of White House economic advisor Gary Cohn. Cohn's departure has reignited fears of a trade war -- which have weighed on equities over the past week -- especially with European leaders warning of retaliatory tariffs. Turning to economic data, the ADP employment report for February revealed 235,000 new jobs in the private sector, blowing past expectations. Revised production data for the fourth quarter, meanwhile, came in flat. But while futures are off their lows, the Dow is still trading more than 200 points below fair value.
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The MBA mortgage index, weekly crude inventories, Fed's Beige Book, international trade data, productivity and costs, and consumer credit report are expected today. Meanwhile, New York Fed President William DudleyandAtlanta Fed President Raphael Bostic will speak. Earnings are due from Caesars Entertainment (CZR), Costco, Plug Power (PLUG), Rosetta Stone (RST), Sears (SHLD), and Thor Industries (THO).
Stocks in Asia closed lower on Wednesday after news of Cohn's resignation hit. Japan's Nikkei fell 0.8%, with the yen catching a safe-haven boost. South Korea's Kospi gave back 0.4%, despite strong showings by tech giants like Samsung and LG. Hong Kong's Hang Seng shed 1%, while China's Shanghai Composite finished 0.6% lower.
Markets in Europe are also reacting to Cohn's resignation. At a conference in Brussels, European Union trade commissioner Cecilia Malmstrom mentioned peanut butter, cranberries, and orange juice as additional U.S. exports that could be hit with retaliatory tariffs from Europe. Meanwhile, steel stocks such as Glencore and Anglo American are trading firmly lower, down 2.3% and 1.6% respectively in London. The FTSE 100 was barely above breakeven at last check, while the French CAC 40 is down 0.2%. The German DAX has recovered from early losses to add 0.6%.