US equity-index futures edged higher on Tuesday ahead of a speech from US President, Donald Trump, where he is likely to discuss the progress of trade negotiations between China and the European Union.
Trump will address the Economic Club of New York in Manhattan amid speculation that he could signal willingness to roll back tariffs on Chinese goods and possibly announce a delay on proposed levies on European-made cars for another six months.
White House spokesman, Judd Deere, told reporters ahead of the speech that investors can "expect the president to highlight how his policies of lower taxes, deregulation, and fair and reciprocal trade have supported the longest economic recovery in US history with record low unemployment, rising wages, and soaring consumer confidence."
Trade unquestionably remains the biggest concern for investors; any suggestion that tariffs might be lifted or delayed could help stocks reach fresh all-time highs between now and the end of the year.
The president’s address comes after Monday’s session, where Boeing (BA: +4.55%) propelled the Dow (+0.03%) to a record closing high, while US stocks were otherwise under pressure, amid uncertainty over trade talks and as political tensions in Hong Kong flared up.
The S&P 500 fell -0.19%, while the Nasdaq eased -0.13% lower.
Ahead, in today’s economic calendar, Tuesday includes; Donald Trump’s at the Economic Club of New York at 12:00pm EST; which will be live streamed from the club's Facebook page.
In earnings; CBS (CBS), D.R. Horton (DHI), Tilray (TLRY), Tyson Foods (TSN), Overstock.com (OSTK), Skyworks Solutions (SWKS) and Edgewell Personal Care (EPC) are all scheduled to report today.
TODAY'S TOP HEADLINES
Hong Kong: Hong Kong Police Warn City on Brink of ‘Total Breakdown’. (Bloomberg)
Hong Kong protesters called for disruptions to the city’s busy commuter trains Wednesday after police fired tear gas in the financial district Tuesday afternoon for a second straight day after demonstrators blocked roads and clashed with police.
Today's Economical Announcements.
12:00PM - ★★★ - US President Trump Speaks
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Advance Auto Parts (AAP): [EARNINGS] Earned $2.10 per share for its latest quarter, 5 cents a share above estimates. Revenue also beat forecasts, however same-store sales came in slightly below estimates with an increase of 1.2%. The company also announced the addition of another $700 million to its share buyback program.
Vodafone (VOD): [GUIDANCE] Raised its full-year earnings outlook, as growth improves in markets like Spain and Italy that had been troublesome in recent quarters for the mobile operator.
Tencent Music (TME): [EARNINGS] Reported better-than-expected revenue for the third quarter, as the music streaming service added more paying subscribers. Monthly average revenue per paying user was up just 7.4%, however, the slowest rate since the company went public in December.
DR Horton (DHI): [EARNINGS] Beat estimates by 10 cents a share, with quarterly earnings of $1.35 per share. Revenue was slightly below Wall Street forecasts. DR Horton also raised its quarterly dividend to 17.5 cents per share from 15 cents a share.
Tyson Foods (TSN): [EARNINGS] Fell 8 cents a share short of estimates, with adjusted fiscal fourth-quarter earnings of $1.21 per share. Revenue also came in shy of Street forecasts, however Tyson said it is very optimistic about fiscal 2020.
Walt Disney (DIS): [NEWS] Disney’s new Disney+ service launches today, costing $6.99 per month. Disney has spent over $3 billion on technology and content prior to the highly anticipated launch.
Dean Foods (DF): [NEWS] Filed for Chapter 11 bankruptcy reorganization, intending to use the process to continue ordinary operations and work toward a sale of the company. Dean Foods said it is currently engaged with Dairy Farmers of America about a potential sale of substantially all company assets.
Craft Brew Alliance (BREW): [NEWS] Anheuser-Busch (BUD) will buy out the remainder of Craft Brew Alliance that it did not already own for about $321 million, or $16.50 per share. The price is more than double yesterday’s closing price of $7.33 for the Portland-based brewer’s stock. Anheuser-Busch, which owns 31.2% of Craft Brew, had said in August that it would not buy the rest of the company.
Kemet (KEM): [BUYOUT] Will be bought by Taiwan-based rival Yageo for $1.8 billion, or $27.20 per share. The price represents an 18% premium to Kemet’s Monday closing price.
Visa (V): [NEWS] Is buying a “significant minority stake” in Nigerian payments platform Interswitch. Financial details were not disclosed, but Sky News reports Visa bought a 20% stake for $200 million.
Edgewell Personal Care (EPC): [EARNINGS] Beat estimates by 2 cents a share, with quarterly earnings of 86 cents per share. Revenue topped estimates as well. The maker of brands like Schick, Wilkinson, and Playtex also said it had reached an agreement to sell its infant and pet care business.
GAINERS: TTD, ACAD, PODD
DECLINERS: RVLV, DBX
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