New York equity index futures traded higher ahead of Wednesday’s open, following Apple’s oh-so sweet fiscal second-quarter earnings and higher than expected guidance; prior of the Federal Reserve’s policy decision.
The stronger earnings performance from Apple (AAPL, BMO: +5.4%) has set better-than-expected readings for Q1 2019 growth in both Europe and the United States, rebounding American technology shares following yesterday’s slump in the wake of Alphabet’s (GOOGL: -7.5%) revenue miss.
The iPhone maker’s robust report could be the longing source of nourishment that Wall Street has craved, following a relatively undecided week of trading thus far; particularly given the fact that the Fed is expected to make no changes to its key lending rate later today.
These moves in pre-market come after Tuesday’s session where the S&P 500 squeaked out a fresh all-time record high, overcoming a cautious mood among investors on the heels of Alphabet’s cloud, which cast a shadow over the Technology sector (+0.17%).
The benchmark S&P index, which had fallen as much as -0.6% earlier in the session, notched a +0.05% gain to settle at a new closing high. The tech-heavy Nasdaq Composite, meanwhile, dropped -0.77%, retreating from its newly set record high.
Moving forward, all eyes will now turn to Federal Reserve Chairman, Jerome Powell, and his press conference following the US rate decision, with Fed officials widely expected to keep interest rates on hold while expressing concern over muted inflation, this follows President Donald Trump’s call for a 1% rate cut and more quantitative easing, yesterday.
Aside from the crucial interest rate decision, Wednesday’s economic calendar also includes; the ADP Employment Report for April at 8:15am EST, the PMI Manufacturing Index for April at 9:45am EST, the ISM Manufacturing Index for April and Construction Spending for March both at 10am EST, followed by the weekly Crude Oil Inventories report at 10:30am EST.
In corporate news; CVS Health (CVS), Qualcomm (QCOM), Square (SQ), Fitbit (FIT), AMC Networks (AMCX), Allstate (ALL), Molson Coors Brewing (TAP), Yum Brands (YUM), Clorox (CLX), Estee Lauder (EL) and Humana (HUM) are amongst the major companies scheduled to release their latest financial reports today.
TODAY’S TOP HEADLINES
Politics & Economy: Fed Eyes Inflation as Trump Pushes Rate Cut. (Bloomberg)
Federal Reserve policy makers may decide Wednesday that falling inflation reinforces a message of caution on interest-rate moves, rather than bowing to President Donald Trump’s demands for drastic action to boost the US economy.
ECONOMIC CALENDAR
Today’s Economical Announbcements.
08:15AM – ★★☆ – ADP Nonfarm Employ. (Apr) (Previous: 129K)
09:45AM – ★★☆ – Manufacturing PMI (Apr) (Previous: 52.4)
10:00AM – ★★☆ – Construction Spending (Mar) (Previous: 1.0%)
10:00AM – ★★★ – ISM Manufacturing PMI (Apr) (Previous: 55.3)
10:30AM – ★★★ – Crude Oil Inventories (Previous: 5.479M)
02:00PM – ★★★ – Fed Interest Rate Decision (Previous: 2.50%)
02:30PM – ★★★ – FOMC Press Conference
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Apple (AAPL): [EARNINGS] Reported quarterly profit of $2.46 per share, beating estimates by 10 cents a share. Revenue beat Wall Street forecasts as well, however Apple saw its second consecutive revenue decline.
Advanced Micro Devices (AMD): [EARNINGS] Beat estimates by a penny a share, reporting adjusted quarterly profit of 6 cents per share. The chipmaker’s revenue just slightly topped estimates. Gross margins saw a 5% jump compared to a year earlier.
Estee Lauder (EL): [EARNINGS] Reported adjusted quarterly profit of $1.55 per share, 25 cents a share above estimates. Revenue also came in above forecasts as demand for its luxury skin care brands like La Mer increased.
Hilton Worldwide (HLT): [EARNINGS] Reported adjusted quarterly profit of 80 cents per share, 4 cents a share above estimates. Revenue came in slightly above Street forecasts. Hilton’s results received a boost from an increase in the key metric of revenue per available room.
Clorox (CLX): [EARNINGS] Fell a penny a share short of forecasts, with quarterly profit of $1.44 per share. Revenue was also below estimates. Clorox noted a more competitive market in certain categories, which it said it is “aggressively addressing.”
Molson Coors (TAP): [EARNINGS] Fell 6 cents a share shy of estimates, with adjusted quarterly profit of 52 cents per share. Revenue also came in below Wall Street forecasts. The company reaffirmed its expectations of higher dividends in the future, as well as commitment to its cost savings program.
Humana (HUM): [EARNINGS] Earned an adjusted $4.48 per share, compared to a consensus estimate of $4.30 a share. Revenue was above estimates as well, and Humana raised its full-year forecast amid increasing sales of its Medicare health plans.
Mondelez International (MDLZ): [EARNINGS] Earned an adjusted 65 cents per share for its latest quarter, 4 cents a share above estimates. The snack maker’s revenue was essentially in line with forecasts. The Oreo cookie maker’s organic revenue growth rose a better-than-expected 3.7%.
Yum Brands (YUM): [EARNINGS] Came in a penny a share ahead of estimates, with adjusted quarterly profit of 82 cents per share. Revenue was essentially in line with expectations. Yum’s results were bolstered by strong growth at its KFC unit, which helped to offset tepid results at its Pizza Hut chain.
Wynn Resorts (WYNN): [NEWS] Was allowed to keep its Massachusetts gaming license, although CEO Matt Maddox was rebuked over his handling of sexual misconduct allegations against former CEO Steve Wynn. The casino operator was fined $35 million, with Maddox being assessed a personal $500,000 penalty.
ADP (ADP): [EARNINGS] Beat estimates by 8 cents a share, reporting adjusted quarterly profit of $1.77 per share. Revenue came in slightly below forecasts, however.
CVS Health (CVS): [EARNINGS] Earned an adjusted $1.62 per share for the first quarter, 12 cents a share above estimates. Revenue was also above analysts’ projections and CVS raised its full-year forecast as it benefits from its buyout of insurer Aetna.
Garmin (GRMN): [EARNINGS] Beat estimates by 2 cents a share, with quarterly profit of 73 cents per share. Revenue also beat estimates and Garmin saw a 12% rise in revenue across all its categories. The company registered a slight decline in profit margins, however.
Amgen (AMGN): [EARNINGS] Beat estimates by 8 cents a share, with adjusted quarterly profit of $3.56 per share. The biotech company’s revenue also exceeded analysts’ forecasts. The beat came despite a 12% drop in sales of Amgen’s Neulasta drug for cancer patients.
Boeing (BA): [NEWS] Boeing bond sale Tuesday raised $3.5 billion amid strong demand, helping it as it faces at least $1 billion in expenses related to the grounding of its 737 Max aircraft.
Home Duepot (HD): [NEWS] Chief Financial Officer Carol Tome will retire on August 31, after serving as CFO of the home improvement giant since 2001. Executive Vice President Richard McPhail will replace her.
Las Vegas Sands (LVS): [NEWS] Could see its shares impacted after gambling revenue in Macau fell 8.3% in April, its biggest year-over-year decline since June 2016.
Anadarko Petroleum (APC): [NEWS] Chevron is considering whether to boost its prior bid in an effort to top Occidental Petroleum’s Berkshire Hathaway backed offer.
MOMENTUM STOCKS
GAINERS: BRKS, WAGE, OII, LDOS, GLDD, GDI
DECLINERS: CVLT, GOOGL, TXRH, RUN, CHGG, MKSI, SABR, INTC
TODAY’S IPOs
None.