Stocks set for flat open as trade confusion keeps Wall Street in check

U.S. stock futures pointed to a flat open on Tuesday as mixed messages from the Trump administration kept investors in check.

Treasury Secretary Steven Mnuchin said in a tweet Monday that a report from the Wall Street Journal about the Trump administration planning to curb Chinese investment in U.S. tech was “fake news.” Mnuchin added, however, that those restrictions will apply to “all countries that are trying to steal our technology.”

Later on Monday, Peter Navarro, a trade advisor to President Donald Trump, told CNBC said there were no plans on slapping investment restrictions on China or other countries. He also called the stock market was overreacting to such fears.

Traders work on the floor of the New York Stock Exchange.
Brendan McDermid | Reuters
Traders work on the floor of the New York Stock Exchange.

However, White House press secretary Sarah Sanders doubled down on Mnuchin’s statement, saying in a press briefing: “As the Secretary said, a statement would go out that targets all countries that are trying to steal our technology, and we expect that to be out soon.”

Stocks fell sharply on Monday, with the Dow dropping more than 300 points and the S&P 500 sliding 1.4 percent, its biggest one-day decline since April 6.

Harley-Davidson declined almost 6 percent on Monday after announcing it will shift production of motorcycles headed for Europe to factories outside the U.S. Trump went after the motorcycle maker on Tuesday, saying in a tweet "they won’t be able to sell back into U.S. without paying a big tax."

General Electric shares jumped more than 5 percent in the premarket after the company revealed a plan to spin off its health-care business and sell its stake in Baker Hughes. The company also announced it will maintain its current dividend until the spin-off is complete. GE was also replaced by Walgreens Boots Alliance on the Dow.