New York equity futures were marginally lower ahead of Tuesday’s open, following Monday’s slump for equities, where Wall Street lost its momentum following the release of disappointing US Construction Spending data, down -0.6%.
The session saw the S&P 500 give up its pre-market trade-optimism advance to finish -0.36% lower, after trimming as much as -1.3% from the benchmark’s value shortly after mid-day trading. The Dow Jones Industrial Average similarly finished -0.82% lower, while the tech-heavy Nasdaq Composite notched a +0.02% flat end to the session.
Moving forward, broader market participants are expected to remain focused on US-China trade progression, with mixed messages holding their position at the forefront of recent media discussion – following developing enthusiasm of an impending trade deal, later this month.
In today’s economic calendar, investors are likely to price in upcoming ISM Non-Manufacturing PMI data and a New Home Sales figures, at 10am EST.
Meanwhile, in the corporate calendar, Target (TGT), Kohl’s (KSS), Urban Outfitters (URBN), Ciena (CIEN), Ambarella (AMBA) and Cooper (COO) are amongst the major companies scheduled to report their financials today.
TODAY’S TOP HEADLINES:
Politics, India & China: Trump Attacks India on Trade as US Seeks Its Help on China. (Bloomberg) US President Donald Trump’s attempt to pressure India on trade may be intended as a symbolic shot across New Delhi’s bow, but its inopportune timing threatens broader political consequences.
China: ‘We must be fully prepared for a tough struggle’. (CNBC) China must be prepared for a “tough struggle” as the country faces a “grave and more complicated environment,” Premier Li Keqiang said at the opening of the annual National People’s Congress on Tuesday, the country’s annual parliamentary meeting.
ECONOMIC CALENDAR: Today’s Economical Announcements
08:55AM – ★☆☆ – Redbook (YoY) (Previous: 5.2%) 08:55AM – ★☆☆ – Redbook (MoM) (Previous: -1.4%) 09:45AM – ★★☆ – Markit Composite PMI (Feb) (Previous: 55.8) 09:45AM – ★★☆ – Services PMI (Feb) (Previous: 56.2) 10:00AM – ★★☆ – ISM Non-Manuf. Employment (Feb) (Previous: 57.8) 10:00AM – ★★★ – ISM Non-Manuf. PMI (Feb) (Previous: 56.7) 10:00AM – ★★★ – New Home Sales (Dec) (Previous: 657,000) 10:00AM – ★★☆ – New Home Sales (MoM) (Dec) (Previous: 16.9%) 02:00PM – ★★☆ – Federal Budget Balance (Jan) (Previous: -14.0B)
STOCKS IN THE SPOTLIGHT: Pre-Market Movers & News Related Stocks
Hertz Global (HTZ): [NEWS] Investor Carl Icahn sold part of his holdings in the car rental giant, according to a Securities and Exchange Commission filing. He cut his stake to 28.91 percent from the prior 35.27 percent.
Target (TGT): [EARNINGS] Reported adjusted quarterly profit of $1.53 per share, a penny a share above estimates. Revenue also beat forecasts. Target gave a better-than-expected full-year earnings forecast.
Kohl’s (KSS): [EARNINGS] Earned an adjusted $2.24 per share for the fourth quarter, beating the consensus estimate of $2.18. Revenue above forecasts, and the comparable-store sales increase of 1 percent during the quarter was above the 0.3 percent gain forecast by analysts.
L Brands (LB): [NEWS} L Brands will be urged by New York hedge fund Barington Capital to separate its Bath & Body Works unit from its flagship Victoria’s Secret operation, according to The Wall Street Journal.
Ciena (CIEN): [EARNINGS] Reported adjusted quarterly profit of 33 cents per share, 3 cents a share above estimates. Revenue beat forecasts.
Salesforce.com (CRM): [EARNINGS] Earned adjusted 70 cents per share for its latest quarter, beating consensus estimates by 15 cents a share. Revenue exceeded forecasts, but the stock came under pressure on the business software company’s weaker-than-expected current-quarter revenue and profit outlook.
Papa John’s (PZZA): [NEWS] The pizza chain has reached a settlement with founder John Schnatter, who will resign from the board once a mutually agreeable independent director is appointed to replace him.
Alphabet (GOOGL): [RATING] Rated “buy” in new coverage at Needham, based in part on the value of YouTube and the so-called “network effect” where the addition of a new user adds value for other users.
Marriott (MAR): [NEWS] Marriott CEO Arne Sorenson will testify before a Senate Panel Thursday about the data breach involving the records of up to 383 million customers of its Starwood unit.
GameStop (GME): [NEWS] GameStop announced a new stock buyback program of up to $300 million. The videogame retailer also said it is continuing its strategic and financial review.
Tyson Foods (TSN): [RATING] Rated “overweight” in new coverage at Stephens, which likes the beef and poultry producer’s diversified product offerings, its prudent allocation of capital, and what it calls best in class operations.
Ingersoll-Rand (IR): [REVIEW] Ingersoll-Rand was added to the “Americas Conviction List” at Goldman Sachs, which notes the industrial systems company’s strong order book and improving price/cost fundamentals.
MOMENTUM STOCKS:
GAINERS: PBYI LOSERS: HCSG, HA, TLRD, NTNX, DDD, WBA, CROX
TODAY’S IPOs:
None.