U.S. stocks set to slip after ex-Trump attorney Michael Cohen says he broke law

U.S. stock futures pointed to a lower open Wednesday, with the selling blamed on what has been dubbed “Trump Hell Hour.”

Former Trump campaign chairman Paul Manafort late Tuesday was found guilty on eight charges including tax fraud, and the president’s former lawyer Michael Cohen said he violated campaign-finance law at President Donald Trump’s direction.

What are the main benchmarks doing?

Dow Jones Industrial Average futures YMU8, -0.22% shed 40 points, or 0.2%, to 25,767, while S&P 500 futures ESU8, -0.23% lost 4.70 points, or 0.2%, to 2,857. Nasdaq-100 futures NQU8, -0.17% fell 11.25 points, or 0.2%, to 7,386.25.

On Tuesday, the Dow DJIA, +0.25% S&P 500 SPX, +0.21% and Nasdaq Composite COMP, +0.49% scored gains ranging from 0.2% to 0.5%. The three gauges are showing year-to-date advances ranging from 4.5% to 14%.

The U.S. stock market on Wednesday is about to rank as the longest bull run in history, by some widely followed metrics.

What’s driving markets?

The S&P 500 on Tuesday traded at an all-time intraday high, as investors have shaken off some trade-war worries and focused on reports showing a healthy U.S. economy and solid corporate earnings.

But markets are facing fresh uncertainty following the legal developments for the two former associates of the president.

What are strategists saying?

“U.S. stock index futures traded lower overnight after two of Mr. Trump’s allies were caught up in legal trouble,” said David Madden, market analyst at CMC Markets UK, in a note.

“This has taken the shine off the positive stock market story.”

Which economic reports are on tap?

A July report on existing-home sales is slated to hit at 10 a.m. Eastern Time. Economists polled by MarketWatch forecasting a seasonally-adjusted annual rate of 5.40 million homes.

The minutes from the Federal Reserve’s last meeting are slated to be released at 2 p.m. Eastern, and they will be scoured for any insight into what the Fed sees as potential problem spots for the economy.

Check out: MarketWatch’s Economic Calendar

Which stocks are in focus?

Urban Outfitters Inc.’s stock URBN, +0.48% looks set for an up day after the retailer late Tuesday reported earnings and sales above Wall Street’s expectations.

Shares in Target Corp. TGT, -0.06%  , Lowe’s Cos. LOW, +0.78% and Analog Devices Inc. ADI, +2.33% are likely to see active trading as they are among the companies expected to post earnings before the open.

What are other markets doing?

Oil futures CLU8, +1.34% and the ICE U.S. Dollar Index DXY, +0.09% traded higher, while gold futures GCZ8, +0.14% were little changed.

European stocks SXXP, -0.09% traded mixed, as did Asian markets.

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