Google dumps Huawei; Markets stutter; Powell speech

Google (GOOG) is cutting back on its business with Huawei following an order from the Trump administration barring American companies from selling to the Chinese tech firm without a US government license.

Huawei relies on Google's Android operating system for its devices, as well as the Google Play app store.

"We are complying with the order and reviewing the implications," a Google spokesperson said Monday.

The restrictions deal a huge blow to Huawei's ambitions to overtake Samsung (SSNLF) as the world's biggest smartphone maker. Huawei phones are much less attractive outside China without Google services, according to analysts.

The news is likely to feed investor unease about the US-China trade war as negotiations between Washington and Beijing appear to stall. Traders will continue to keep a close eye on the yuan, which was little changed Monday. The currency's steep slide against the dollar in recent weeks could complicate talks further.

2. Markets stutter: US stock futures point slightly lower after concluding last week on a disappointing note.

The Dow is set to fall more than 30 points when US markets open, or 0.1%. The S&P 500 is on track for a similar percentage drop, while the Nasdaq could shed 0.5%.

Trade anxiety continues to weigh on stocks globally. European markets opened lower. Britain's FTSE 100 index dipped about 0.4%. France's CAC 40 index fell 0.9%, while Germany's DAX index dropped 0.6% in early trading.

That follows a mixed trading session in Asia, where Hong Kong's Hang Seng index dropped 0.6% and the Shanghai Composite index shed 0.4%. Meanwhile, Japan's Nikkei index climbed 0.2%.

Stocks in India jumped more than 3.8% after exit polls indicated that incumbent Prime Minister Narendra Modi could be on track for a second term.

The Dow closed down 0.4% on Friday. The S&P 500 fell 0.6%, and the Nasdaq lost 1%.

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3. Powell speech: Federal Reserve chair Jerome Powell will give the keynote speech at the Atlanta Fed's Financial Markets Conference on Monday at 7 p.m. ET.

Investors will listen for clues that Powell could change his sit-tight approach to interest rates now that the trade fight with China is back in full swing.

Powell said at the beginning of the month that board members didn't see a "strong case" for either raising or lowering interest rates. But that was before new rounds of tit-for-tat tariffs from Washington and Beijing.

The Trump administration has also said it's preparing further tariffs on Chinese goods worth $300 billion, which would put duties on essentially all of the country's exports to the United States.

4. Coming this week:
Monday — Japan GDP; Twitter (TWTR) annual meeting; Xiaomi earnings
Tuesday — BP annual meeting; Kohl's, Home Depot (HD), Nordstrom, JCPenney, Urban Outfitters (URBN) and TJX (TJX) earnings
Wednesday — Fed minutes; Amazon annual meeting; Target, Lowe's (LOW) and L Brands (LB) earnings
Thursday — Indian election results; Deutsche Bank annual meeting; US new home sales; Best Buy (BBY), Ross Stores (ROST) and HP earnings
Friday — US durable goods orders; Foot Locker (FL) earnings

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