US stocks suffer sell-off
Trump turmoil continues
Comey memo in focus
Cisco Systems shares take hit after hours
US shares limped home to a poor finish, with the Dow Jones shedding 372 points, or 1.78%, at 20,606.
Markets are reeling from the Trump fallout as yet another scandal engulfs the White House, the controversy centring on the extent of the President's interference in investigations on Russian ties.
The S&P 500 shed 43 at 2,357, while the Nasdaq lost a whopping 158 points, or 2.57%, to finish at 6,011.
It was the worst day for the day and S&P500 for eight months.
US crude firmed and was up 0.70% at the time of writing.
In Toronto, the TSX exchange closed almost 270 points down at 15,273.
It comes as Cisco Systems Inc (NASDAQ:CSCO) is plunging almost 6% after hours as the computer networking tech giant forecast current-quarter revenue that were below analysts' estimates.
Mid-session
US shares are crashing at mid-session, with the Dow Jones down 343 points at 20,636.
The S&P500 index is down 40 at 2,360 and the Nasdaq lost 141 at 6,024 as Donald Trump appears to be facing his biggest crisis yet at the White House.
It centres around his dismissal of FBI chief James Comey and the contents of a memo written by Comey prior to his sacking.
This alleges that President Trump asked him to drop an investigation of former National Security Adviser Michael Flynn.
The memo itself has not yet surfaced publicly.
Donald Trump's silence on the Comey memo is deafening | Analysis by @CillizzaCNN https://t.co/LhnHLV426J pic.twitter.com/EKhNFteoBe
— CNN (@CNN) May 17, 2017
In company news, bebe stores (NYSE: BEBE) shed over 26% to $3.86 as reports suggested the firm would license www.bebe.com as a domain name, social media accts. and international wholesale agreements to one or more third parties.
Shares of American Eagle Outfitters (NYSE: AEO) dropped 15% to $11.06 as the firm's quarterly earnings disappointed and it issued a weak earnings forecast for the current quarter.
On the winning front, household goods maker Colgate-Palmolive Company (NYSE:CL) rose over 5% as it emerged it could be up for sale.
The shares rose 3.4% to just over US$74, but chief executive officer Ian Cook would be US$100 a share, according to reports, which would value the company at a wallet-busting US$88bn.
The New York Post reported that Cook named his price at a recent meeting with institutional investors.
The newspaper reports that Anglo-Dutch rival Unilever plc (LON:ULVR) – itself a target of Kraft Heinz Co (NASDAQ:KHC) a few months back – could be interested in swallowing the New York-based conglomerate.
11am.. 'All that glitters is gold', says Kathleen Brooks, analyst at London based City Index.
"Stocks have sold off heavily on Wednesday, while safe havens have surged. The gold price has jumped more than $20 so far today, and the spot gold price is now above its 200-day moving average, a key resistance level.
"When the political situation turns sour this is gold’s chance to shine. If we do see tensions in Capitol Hill escalate further then we would expect gold to march higher, and a move back towards $1,300, the high from mid-April, could be on the cards."
10am... US OPEN
Financial stocks took the brunt of selling on Wednesday as Wall Street shares tumbled as President Donald Trump seemed to be getting into the hot water many had forecasted.
The Dow Jones sank 232 points at 20,746, while the tech heavy Nasdaq lost over 79 points and the S&P500 shed over 23 at 2,357.
In Toronto, the TSX is down 138 points at 15,404.
The Trump administration appears to face a new scandal everyday and the 'impeachment' word has been bandied about a lot across the world's media in recent hours..
The latest news has centred on whether he asked the FBI Director James Comey, now sacked, to end an investigation into former national security adviser Michael Flynn - the latest twist in the links with Russia scandal.
Connor Campbell, at Spreadex, said: "There are a couple of reasons as to why this has caused such jittery trading. Firstly, it threatens to delay, or completely derail, Trump’s market-lifting infrastructure and tax policies. "Secondly, and more drastically, it could actually lead to the impeachment of the sentient Wotsit, an eventuality that would completely erase the foundations of the market’s recent record highs."
The dollar has also retreated on the back of news that he shared terrorism intelligence with Russian officials. It is 0.28% down against the UK pound.
In stocks, banking g giants Goldman Sachs Group Inc (NYSE: GS) is down 3% , while Morgan Stanley (NYSE:MS) and Citigroup (NYSE:C) fell 3.25% and 2.32% respectively, as traders fretted over whether Trump's financial pledges and fiscal reform would see the light of day.
US crude is up 0.523% to $48.92.
PREVIEW...
US stocks are seen opening lower as further political turmoil appears to have engulfed Donald Trump's White House.
News emerged yesterday that he gave classified intelligence to Russian officials last week and now the plot has thickened as reports emerged that he asked the now sacked FBI Director James Comey to end an investigation into former national security adviser Michael Flynn.
This is denied by the US administration.
READ - US stocks end mixed as pressure mounts on Trump over intel
In futures today, the Dow Jones is down 75 points and the S&P 500 is 8.75 lower, while the Nasdaq futures were down 16.5. European indices are also in the red.
Investors are concerned at the volatility that has marked the presidency so far and whether the policies he so vehemently Trumpeted prior to November can be actually realised..
Both the S&P 500 and the Nasdaq hit record highs yesterday, continuing the rally since Trump's election.
The Dow Jones closed down 2.19, recouping some earlier losses, at 20,979. The S&P500 finished down 1.65 at 2,400 but the Nasdaq bucked the trend, closing up 20 points at 6,169.
Investors can expect more earnings today, with Target (NYSE:TGT), American Eagle (NYSE: AEO) reporting.
There is also a US crude inventory report, which will sure to be keenly analysed to see how America's stockpiles fit into the attempts to curtail the glut.