New York stock futures rose modestly ahead of Wednesday’s open, amid optimism that President Donald Trump’s $200 billion self-imposed tariff deadline may be extended if the two economies make progress in reaching an agreement.
President Donald Trump suggested on Tuesday; “If we’re close to a deal where we think we can make a real deal and it’s going to get done, I could see myself letting that slide for a little while.”
The softer tone, suggesting to some that the two sides see some progress on key issues such as alleged intellectual property theft and forced technology transfers, which have been held as sticking points to a comprehensive agreement by officials in Washington.
This pre-market optimism looks to build upon yesterday’s session, where Wall Street cleared another hurdle, after US lawmakers had reached a tentative deal to avert another damaging government shutdown – sending stocks racing higher.
The S&P 500 gained +1.29%, while the Dow Jones Industrial Average and the Nasdaq Composite were up +1.43% and +1.48% respectively.
Global trade proxy stocks, Caterpillar (CAT: +2.9%), Deere & Co (DE: +2%) and Boeing (BA: +1.68%) advanced, with their shares closely tracking the ups and downs of the trade negotiations.
In today’s earnings, Cisco Systems (CSCO), Teva Pharmaceutical (TEVA), DISH Network (DISH), Fossil Group (FOSL), Yelp (YELP), MGM Resorts International (MGM), NetApp (NTAP), Marathon Oil (MRO) and Hilton Worldwide (HLT) are amongst the major companies scheduled to release their financial figures.
In the data front, investors are likely to monitor Building Permits and CPI numbers out at 8.30am EST, followed by Crude Oil Inventories at 10:30am EST.
TODAY’S TOP HEADLINES:
Politics: Trump Edges Toward Taking Shutdown-Averting Border Deal. (Bloomberg)
President Donald Trump is eyeing a path to avoid another government shutdown where he would reluctantly accept the congressional border-security deal and attempt to tap other funds for his wall.
China & Trade: Trump says he may not stick to March deadline on China tariffs. (CNBC)
President Donald Trump said Tuesday that he would consider postponing the March 2 deadline for tariffs if the U.S. and China can reach a trade deal soon.
ECONOMIC CALENDAR:
Today’s Economical Announcements
08:30AM – ★★★ – Building Permits (Previous: 1.328M)
08:30AM – ★★☆ – Core CPI (YoY) (Jan) (Previous: 2.2%)
08:30AM – ★★★ – Core CPI (MoM) (Jan) (Previous: 0.2%)
08:30AM – ★★☆ – Goods Trade Balance (Previous: -77.25B)
08:30AM – ★★☆ – Housing Starts (Previous: 1.256M)
10:30AM – ★★★ – Crude Oil Inventories (Previous: 1.263M)
STOCKS IN THE SPOTLIGHT:
Pre-Market Movers & News Related Stocks
Teva Pharmaceutical (TEVA): [EARNINGS] Fell a penny short of Street forecasts with adjusted quarterly profit of 53 cents per share. Revenue above forecasts.
Dish Network (DISH): [EARNINGS] Reported quarterly profit of 64 cents per share, falling short of consensus estimates by three cents. Revenue above forecasts.
Activision Blizzard (ATVI): [EARNINGS] Reported adjusted quarterly profit of $1.29 per share, one cent above estimates. Revenue missed estimates, as does the company’s forward guidance.
TripAdvisor (TRIP): [EARNINGS] Fell two cents short of estimates with adjusted quarterly profit of 27 cents per share. Revenue beat forecasts.
Groupon (GRPN): [EARNINGS] Fell three cents shy of Street forecasts with adjusted quarterly profit of 10 cents per share. Revenue beat forecasts.
DocuSign (DOCU): [UPGRADE] Upgraded to “buy” from “hold” by Deutsche Bank, which also increased its price target on the electronic document technology company’s stock to $65 per share from $50.
Twilio (TWLO): [EARNINGS] Reported adjusted quarterly profit of four cents per share, matching estimates. Revenue above forecasts.
Hilton Worldwide (HLT): [EARNINGS] Reported adjusted quarterly profit of 79 cents per share, beating forecasts by ten cents. Revenue better than expected.
Deere (DE): [DOWNGRADE] Bank of America downgraded the heavy equipment maker to “neutral” from “buy,” saying the stock’s risk/reward profile is now more balanced following material outperformance compared to rival Caterpillar (CAT).
Amazon (AMZN), General Motors (GM): [NEWS] Amazon and GM in talks to invest in electric pickup truck maker Rivian Automotive, according to a Reuters report.
Akamai Technologies (AKAM): [EARNINGS] Reported adjusted quarterly profit of $1.07 per share, beating the $1 consensus estimate. Revenue beat forecasts.
General Electric (GE): [NEWS] GE won the most orders for gas turbines in 2018, according to a closely watched report seen by Reuters.
MOMENTUM STOCKS:
GAINERS: PYX, TROX, BHF, RAMP, DHI
LOSERS: TAP, OHI
TODAY’S IPOs:
None.