US stock futures traded higher on Tuesday, ahead of today’s latest batch of earnings reports from a number of corporate heavyweights, while the White House and congressional negotiators reached a budget deal that would lift the government's debt limit.
Wall Street’s recent positive mood gained further support into the early hours of this morning, after President Donald Trump’s late-Monday announcement of a bipartisan deal, between the White House and leaders from the Senate and House of Representatives, to suspend the US government’s borrowing limit and boost government spending levels for two years.
"A deal has been struck with Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer, Speaker of the House Nancy Pelosi, and House Minority Leader Kevin McCarthy on a two-year Budget and Debt Ceiling, with no poison pills" Trump tweeted.
If approved, by both the House and Senate, the deal would likely avoid a repeat of the government shutdowns that plagued Washington in early 2018 and again at the beginning of 2019.
Meanwhile, global stocks appeared to receive further overnight support from Trump’s move to meet with major technology companies at the White House on Monday, to discuss restrictions on Chinese telecom giant Huawei; a move seen by many as a softening stance on the blacklisted firm.
These developments, amongst the many yet to come, look to help extend upon yesterday’s market gains, where Technology stocks (+1.15%) led a broad US market advance, as investors tracked strained geopolitical tensions in the Gulf.
The S&P 500 finished +0.3% higher; which saw the Dow turn positive and end fractionally higher, +0.07%. The tech-heavy and market leader, Nasdaq Composite, meanwhile, rose +0.8% into the close.
Ahead, in today’s economic calendar, Tuesday includes; the FHFA House Price Index for May at 9am EST, followed by Existing Home Sales for June at 10am EST.
In corporate news; Coca-Cola (KO), Chipotle Mexican Grill (CMG), Texas Instruments (TXN), Snap (SNAP), Visa (V), JetBlue Airways (JBLU), Harley-Davidson (HOG), Biogen (BIIB), Stanley Black & Decker (SWK), Centene (CNC), United Technologies (UTX), Travelers (TRV), Kimberly-Clark (KMB), Lockheed Martin (LMT), Discover Financial Services (DFS) and Hasbro (HAS) are amongst the major companies scheduled to report their financial earnings today.
TODAY'S TOP HEADLINES
UK & Politics: Boris Johnson to Become UK Prime Minister After Winning Party Election. (The WSJ)
Boris Johnson, the former foreign secretary and mayor of London who has pledged to take Britain out of the European Union on October 31, is set to become British prime minister on Wednesday after winning the leadership of the ruling Conservative Party.
ECONOMIC CALENDAR
Today's Economical Announcements.
09:00AM - ★☆☆ - House Price Index (May) (Previous: 0.4%)
10:00AM - ★★★ - Existing Home Sales (Jun) (Previous: 5.34M)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Hasbro (HAS): [EARNINGS] Earned an adjusted 78 cents per share for its latest quarter, well above the consensus estimate of 50 cents a share. Revenue also exceeded forecasts, on strong demand for toys related to “Avengers: Endgame” among other factors.
Coca-Cola (KO): [EARNINGS] Beat estimates by 2 cents a share, with adjusted quarterly profit of 73 cents per share. Revenue came in above forecasts, as well, and Coca-Cola raised its full-year revenue forecast as demand grows for some of its newer soft drinks and coffees.
Harley-Davidson (HOG): [EARNINGS] Reported quarterly profit of $1.23 per share, compared to a consensus estimate of $1.20 a share. The motorcycle maker’s revenue come in below estimates and it cut its outlook for motorcycle shipments.
United Technologies (UTX): [EARNINGS] Came in 15 cents a share above forecasts, with adjusted quarterly earnings of $2.20 per share. Revenue also came in above forecasts and United Technologies raised its full-year outlook as it benefits from its purchase of Rockwell Collins.
AutoNation (AN): [NEWS] AutoNation named Chief Financial Officer Cheryl Miller as its new CEO, replacing Carl Liebert.
Whirlpool (WHR): [EARNINGS] Reported adjusted quarterly profit of $4.01 per share, 30 cents a share above consensus. The appliance maker’s revenue also beat estimates and Whirlpool raised its full-year forecast, after successfully increasing prices to offset higher production costs.
Lockheed Martin (LMT): [EARNINGS] Earned $5 per share for the second quarter, 23 cents a share above estimates. Revenue also topped forecasts and Lockheed raised its full-year outlook, amid strong performances in all four of its business segments.
Apple (APPL): [NEWS] Is in advanced talks to buy Intel’s wireless chip business, according to The Wall Street Journal. The paper said the deal could be reached in the next week, and that Apple would pay around $1 billion.
Starbucks (SBUX): [NEWS] Is buying a stake in restaurant technology company Eatsa, and will also take a seat on the board. Eatsa had operated a number of automated cafes, but has closed those locations down and is now selling its systems to other restaurant chains.
Travelers (TRV): [EARNINGS] Reported adjusted quarterly profit of $2.02 per share, compared to a consensus estimate of $2.28 a share. Revenue beat forecasts on higher net investment income and premiums, but the insurer also saw higher non-weather related casualty losses than it had a year before.
Boeing (BA): [DOWNGRADE] The company’s outlook was downgraded to “negative” from “stable” by Moody’s, echoing a similar move earlier in the day by Moody’s rival Fitch. Both credit rating agencies cited the ongoing uncertainty surrounding Boeing’s grounded 737 Max jet.
Biogen (BIIB): [EARNINGS] Reported adjusted quarterly earnings of $9.15 per share, compared to a consensus estimate of $7.53 a share. Revenue beat Wall Street projections, and the company also raised its full-year forecast. Biogen’s results were boosted in part by growth in sales of multiple sclerosis drug Tecfidera.
Facebook (FB): [NEWS] Is expected to announcement a settlement with the Federal Trade Commission over its privacy practices as soon as this week. It has already been widely reported that the settlement would include a fine of about $5 billion, as well as a number of privacy-related requirements.
MOMENTUM STOCKS
GAINERS: AMAT, BX, LRCX, GNTX
DECLINERS: PAYS, CADE, HIBB, BC, SFM, KR, BGS, LL, URI
TODAY'S IPOs
None.
