European stocks and US equity futures both gained this morning, after an overnight rise in Asian risk-asset prices, as traders assessed the latest news on trade and awaited fresh clues on US monetary policy.
The Federal Reserve minutes of its July 30-31 meeting will be released at 2pm EST today, shedding light on the central bank’s recent decision to cut interest rates for the first time in more than a decade.
The minutes release may provide some clarity on officials’ views, however they’re likely to be overshadowed by Chairman, Jerome Powell’s, address in Wyoming this Friday, amid Trump’s latest attack on the Fed and Powell’s displeasure in addressing expectations of a series of rate cuts to follow.
Donald Trump had also made new comments about his trading relationship with the European Union, telling White House reporters; "Dealing with the European Union is very difficult".
"We have all the cards in this country because all we have to do is tax their cars and they'd give us anything we wanted because they send millions of Mercedes over. They send millions of BMWs over" he added.
Trump is due to meet with EU leaders this weekend at the scheduled G-7 meeting in France.
Today’s pre-market advance comes after Tuesday’s session, where Wall Street slipped for the first time in four days as investors weighed the prospect of fiscal monetary stimulus against falling asset prices in Italy, as prime minister, Giuseppe Conte, announced his intent to resign.
The S&P 500 closed -0.77% lower, near session lows, while the Nasdaq Composite and Dow Jones both recorded similar declines, down -0.77% and -0.63%, respectively.
Ahead, in today’s economic calendar, aside from the Fed Minutes, Wednesday also includes; Existing Home Sales for July at 10am EST, followed by Crude Oil Inventories at 10:30am EST.
In corporate news; Lowe's (LOW), Target (TGT), Nordstrom (JWN), Splunk (SPLK), Analog Devices (ADI) and L Brands (LB) are amongst today’s major earnings-reporters.
TODAY'S TOP HEADLINES
Politics: Trump Snubs Danish Queen as State Visit Canceled Over Greenland. (Bloomberg)
President Donald Trump cancelled a state visit to Denmark after his offer to buy Greenland was met first with bemusement, then flat refusal.
ECONOMIC CALENDAR
Today's Economical Announcements.
10:00AM - ★★★ - Existing Home Sales (Jul) (Previous: -1.7%)
10:30AM - ★★★ - Crude Oil Inventories (Previous: 1.580M)
02:00PM - ★★★ - FOMC Meeting Minutes
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Target (TGT): [EARNINGS] Posted adjusted quarterly profit of $1.82 per share, 20 cents a share above estimates. Revenue also exceeded forecasts. Comparable-store sales were up 3.4%, above the 2.9% estimate of analysts surveyed by Refinitiv. Target also raised its full-year earnings outlook.
Lowe’s (LOW): [EARNINGS] Beat estimates by 14 cents a share, with adjusted quarterly profit of $2.15 per share. Revenue also beat forecasts. Comparable-store sales rose 2.3%, better than the 1.9% consensus estimate.
Children’s Place (PLCE): [EARNINGS] Earned an adjusted 19 cents per share for its latest quarter, a penny a share above estimates. Revenue was below forecasts, however, and comparable-store sales were down 3.8%, matching analysts’ projections. Children’s Place also cut its full-year forecast, as it works through a decrease in traffic, an increase in promotional activity, and pressure from the Gymboree liquidation.
Cree (CREE): [EARNINGS] Reported adjusted quarterly profit of 11 cents per share, a penny a share above estimates. The lighting solutions company also saw revenue exceed forecasts. The company gave a weaker-than-expected current-quarter forecast, however, pointing to softness in the LED market and the US ban on doing business with China’s Huawei Technologies.
CyberArk Software (CYBR): [RATING] Rated “outperform” in new coverage at Cowen, citing its leadership position in the fast-growing Privilege Access Security segment.
Toll Brothers (TOL): [EARNINGS] Beat estimates by 17 cents a share, with quarterly profit of $1 per share. The luxury home builder’s revenue also beat analysts’ forecasts. Toll Brothers had a drop-in order, however, pointing at possible weaker demand for new homes. The company said lower mortgage rates and strong employment were positive factors going forward.
Tesla (TSLA): [NEWS] Was sued by Walmart (WMT), with the retailer alleging that Tesla’s “widespread negligence” is responsible for repeated fires in Tesla solar energy systems. Walmart is asking the court to force Tesla to remove solar panels from more than 240 of its stores.
Cardinal Health (CAH): [NEWS] Said its business could be impacted by ongoing opioid-related lawsuits. Cardinal and other wholesale pharmaceutical distributors have been named in about 2,500 lawsuits and Cardinal said it expects to be named as a defendant in additional lawsuits.
Urban Outfitters (URBN): [EARNINGS] Reported quarterly profit of 61 cents per share, 3 cents a share above estimates. Both revenue and comparable-store sales came in below Wall Street forecasts, however, as digital sales growth did not offset declines at the company’s Urban Outfitters, Anthropologie, and Free People stores.
Alibaba (BABA): [NEWS] Delaying a planned $15 billion Hong Kong initial public offering, according to Reuters. The decision by the China e-commerce giant comes amid the growing political unrest in Hong Kong.
MOMENTUM STOCKS
GAINERS: AVYA, PAYS, RUBI, HD
DECLINERS: HAIN, ELAN, PFPT, M, MKC, ADS, SONO
TODAY'S IPOs
None.
