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| Trump worries hit stocks; Laptop ban in focus; Target earnings |
By Alanna Petroff
Wednesday, May 17th, 5:29am |
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| 1. Seeing red: Global stock markets are waking up to rising political risk in Washington. |
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| Many international indexes were lower and U.S. stock futures were heading south. The U.S. dollar weakened against other major currencies. |
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| The moves followed news that President Trump asked former FBI Director James Comey to end an investigation into former national security adviser Michael Flynn. |
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| The stunning reports — denied by the White House — deepened the political turmoil engulfing Trump’s White House and intensified concerns among investors about the president’s ability to push through his big economic plans. |
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| “The inflammable allegations have spooked both currency and equity markets,” said Stephen Innes, a senior trader at online broker Oanda. “Foreign exchange dealers are in flat out sell-the-dollar mode.” |
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| Both the S&P 500 and Nasdaq hit record highs on Tuesday, extending a major rally that took hold following Trump’s election in November. Despite the current wobble, Trump’s presidency has been a boon for U.S. stocks. |
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| 2. Laptop ban in focus: Top European and U.S. officials will discuss aviation security on Wednesday. The U.S. is considering an expansion of the U.S. laptop ban to include flights from Europe. |
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| The laptop ban bars passengers from bringing electronic devices into the cabin if they’re larger than a smartphone. |
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| Expanding the ban could disrupt the global aviation industry and slam U.S. tourism. There are more than 350 flights a day from Europe to the U.S. |
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| U.S. carriers Delta Air Lines, United Airlines and American Airlines operate the largest number of flights between Europe and the U.S. |
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| 3. Market movers: Shares in Colgate-Palmolive were rising premarket after a media report suggested the firm’s CEO is considering a possible sale. |
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| Quarterly results could mean big moves for retailers Target and American Eagle. They’re both releasing earnings before the open. |
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| Cisco Systems and Victoria’s Secret owner L Brands will announce earnings after the close. |
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| Gold prices increased by about 0.6% to trade around $1,245 per ounce as investors put their money in safe-haven assets. |
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| The weekly U.S. crude inventory report will be released at 10:30 a.m. ET. |
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| 4. Developers unite!: Google is hosting an annual developer conference on Wednesday. |
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| CEO Sundar Pichai and other executives will take the stage in Mountain View, California to announce the company’s latest hardware and software news. |
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