Global stocks pulled back on Friday, as this week’s risk-on mood showed signs of easing, following overnight declines in European and Asian equities.
White House economic adviser, Larry Kudlow, confirmed that the US and China had both agreed to roll back tariffs on each other's goods, telling Bloomberg on Thursday that if "there's a phase one trade deal, there are going to be tariff agreements and concessions."
Investors appear to be catching their breath however, as they remain relatively uncertain about President Donald Trump’s commitment to offering such concessions after trade adviser, Peter Navarro, told Fox Business: "There is no agreement at this time to remove any of the existing tariffs as a condition of the phase one deal and the only person who can make that decision is President Donald J. Trump and it's as simple as that."
These developments come after Thursday’s session, where Wall Street’s three main gauges closed at simultaneous record highs, following headlines of the US-China tariff removal agreement.
The S&P 500 finished +0.35% higher, about seven index points above Monday’s peak close. Meanwhile, the Nasdaq Composite rose +0.34% and the Dow Jones gained +0.82% to extend their record runs.
Ahead, in today’s economic calendar, Friday includes; Consumer Expectations and Sentiment for November as well as Wholesale Trade data for September at 10am EST.
Earnings reports are expected today from; Duke Energy (DUK), Revlon (REV) and E. W. Scripps (SSP).
TODAY'S TOP HEADLINES
China & Trade: China Says Tariffs Will Go, But US Doubts Remain. (The WSJ)
Beijing’s announcement Thursday that the US and China have mutually agreed to roll back tariffs as part of a “phase one” trade accord lifted financial markets, but questions remain over how much ground, if any, the Trump administration had agreed to give.
ECONOMIC CALENDAR
Today's Economical Announcements.
10:00AM - ★★☆ - Michigan Consumer Expect. (Nov) (Previous: 84.2)
10:00AM - ★★☆ - Michigan Consumer Senti. (Nov) (Previous: 95.5)
10:00AM - ★☆☆ - Wholesale Inventories (MoM) (Previous: 0.2%)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Teradata (TDC): [NEWS, EARNINGS & GUIDANCE] Said CEO Oliver Ratzeberger has stepped down “by mutual agreement,” and is being replaced on an interim basis by Executive Chairman Victor Lund. The announcement came as Teradata reported weaker-than-expected earnings and revenue for the third quarter, and sharply lowered its full-year guidance.
Zillow (Z): [EARNINGS] Lost 12 cents per share for the third quarter, smaller than the 21 cents a share loss that Wall Street was anticipating. The real estate website operator’s revenue came in above estimates, and it gave an upbeat forecast as well.
Gap Inc. (GPS): [NEWS & GUIDANCE] CEO Art Peck is stepping down and will be immediately replaced on an interim basis by Robert Fisher, son of the Gap’s founders. That follows several years of sluggish sales for the apparel retailer. The company is also warning of a weaker-than-expected financial performance for the current quarter.
Walt Disney (DIS): [EARNINGS] Reported quarterly earnings of $1.07 per share, 12 cents a share above estimates. Revenue also beat forecasts, boosted by a 52% increase in studio entertainment revenue amid a strong movie box office performance.
Booking Holdings (BKNG): [EARNINGS & GUIDANCE] Earned $45.36 per share for its latest quarter, beating the consensus estimate of $44.57 a share. The operator of Priceline and other travel websites saw its revenue come in slightly below Wall Street forecasts, however, and it gave a current-quarter earnings outlook that falls below analysts’ estimates.
Dropbox (DBX): [EARNINGS] Came in 2 cents a share ahead of estimates, with quarterly profit of 13 cents per share. The cloud storage company’s revenue was also above estimates. The company said it is benefiting from its new desktop app, which was introduced in September, as well as good results from its Dropbox Spaces collaboration software.
Activision Blizzard (ATVI): [EARNINGS] Beat estimates by 9 cents a share, with quarterly profit of 32 cents per share. The video game maker’s revenue was above estimates as well. Activision said it saw record growth in subscriptions during the quarter, thanks in large part to its World of Warcraft: Classic game.
Take-Two Interactive (TTWO): [EARNINGS & GUIDANCE] Earned $2.02 per share for its fiscal second quarter, above the consensus estimate of $1.69 a share. The video game company’s revenue exceeded forecasts as well. The quarter’s performance was helped by strong results for the company’s NBA, Grand Theft Auto, and Red Dead Redemption games. Take-Two also gave lower-than-expected guidance for the current quarter.
Alibaba (BABA): [NEWS] Is planning to launch its Hong Kong initial public offering in the last week of this month, according to sources who spoke to Reuters. The China-based online retailer is hoping to raise up to $15 billion in the offering.
Amazon (AMZN): [NEWS] Has reached a deal with Disney (DIS) to carry the new Disney+ streaming service on its Fire TV devices, according to people familiar with the matter who spoke to The Wall Street Journal.
HP Inc. (HPQ): [NEWS] HP’s board is not convinced that selling the computer and printer maker to Xerox (XRX) is the right move, according to a Bloomberg report. HP confirmed earlier this week that it had spoken with Xerox about a potential business combination.
MOMENTUM STOCKS
GAINERS: COMM, EYE, GDDY, SYNA, GTN, DISCA, BKE, PODD
DECLINERS: EXPE, TPIC, LCI, ROKU, YELP, FANG, SHAK
TODAY'S IPOs
Juniper Industrial (JIH.U) (Price: 10) (Est. Vol: $300.0M)
TELA Bio (TELA) (Price: 13) (Est. Vol: $52.0M)
ECMOHO (MOHO) (Low: 10, High: 12) (Est. Vol: $48.1M)
36Kr Holdings (KRKR) (Low: 14.50, High: 17.50) (Est. Vol: $22.1M)
CNS Pharmaceuticals (CNSP) (Low: 4, High: 5) (Est. Vol: $9.6M)
