Stateside equity index futures drifted lower, while global stocks traded mostly higher overnight, as investors digested the latest in the Sino-American confrontation over technology, where in recent developments, the Trump administration is considering to add Chinese video equipment companies to its growing blacklist.

The New York Times reported that the Trump administration is considering limits on Chinese video surveillance giants, banning their ability to buy American technology, with Hangzhou Hikvision Digital Technology and Zhejiang Dahua Technology among those targeted for the so-called “Entities List” as the US tightens down on Beijing in an effort to force concessions on trade.

The potential crackdown stems from the Trump administration’s belief that China poses an economic, technological and geopolitical threat that cannot be left unchecked.

This morning’s developments look to undermine much of yesterday’s optimism, which had assisted Wall Street in regaining some of its losses for the first time in three days, as the US granted a three-month reprieve on its Huawei ban.

Wall Street’s S&P 500 index closed +0.90% higher, led by the Materials (+1.54%) and Technology (+1.23%) stocks. The Nasdaq Composite, home to a range of big-name tech stocks, climbed +1.04%, while the Dow Jones Industrial Average advanced +0.82%, regaining much of its recently lost value.

Ahead, in today’s economic calendar, Wednesday includes; Oil Inventories for the week ended May 17 at 10:30am EST, followed by minutes from the April 30-May 1 Federal Open Market Committee meeting at 2:00pm EST.

In earnings; Lowe’s (LOW), Target (TGT), VF Corp. (VFC), NetApp (NTAP), Synopsys (SNPS), L Brands (LB) and Analog Devices (ADI) are amongst those scheduled to report today.

China & Trade: Trump Administration Could Blacklist China’s Hikvision, a Surveillance Firm. (The NYT)
The Trump administration is considering limits to a Chinese video surveillance giant’s ability to buy American technology, people familiar with the matter said, the latest attempt to counter Beijing’s global economic ambitions.

Today’s Economical Announcements.

10:30AM – ★★★ – Crude Oil Inventories (Previous: 5.431M)
02:00AM – ★★★ – FOMC Meeting Minutes

Pre-Market Movers & News Related Stocks.

Pure Storage (PSTG): [EARNINGS] Lost 11 cents per share for the first quarter, 3 cents a share more than Wall Street had been anticipating. Revenue also missed estimates and the data storage company lowered its revenue outlook for the full year.

Qualcomm (QCOM): [NEWS] A federal judge has ruled that Qualcomm unlawfully hindered competition in the mobile phone chip market, and used its dominant position to charge excessive licensing feels.

Nordstrom (JWN): [EARNINGS] Reported quarterly profit of 23 cents per share, missing the consensus estimate of 43 cents a share. Revenue came in below forecasts as well, hurt by slower sales of full-priced women’s apparel as well as expenses related to a new loyalty program. The retailer also cut its full-year forecast.

Lowe’s (LOW): [EARNINGS] Reported adjusted quarterly profit of $1.22 per share, 11 cents a share below estimates. Both revenue and comparable-store sales were above Wall Street forecasts, but Lowe’s cut its full-year forecast amid profit margin pressures.

Target (TGT): [EARNINGS] Earned an adjusted $1.53 per share for the first quarter, 10 cents a share above consensus estimates. Revenue also beat forecasts, and a same-store sales increase of 4.8% beat the 4.2% consensus estimate of analysts polled by Refinitiv.

Urban Outfitters (URBN): [EARNINGS] Beat estimates by 6 cents a share, with quarterly earnings of 31 cents per share. Revenue also topped forecasts. The apparel retailer saw stronger-than-expected sales at both its Urban Outfitters and Anthropologie chains. It also announced plans to launch an $88 per month clothing rental service.

Toll Brothers (TOL): [EARNINGS] Came in 12 cents a share ahead of estimates, with quarterly profit of 87 cents per share. The luxury home builder also scored a revenue beat. The company did say, however, that it expected profit margins to be pressured by slower housing demand and increased incentives.

VF Corp. (VFC): [EARNINGS] Earned an adjusted 60 cents per share for its latest quarter, 2 cents a share above estimates. Revenue also beat forecasts on stronger demand for its North Face clothing and Vans shoes. VF also gave an outlook that came in below current Street consensus, although that outlook factors in the divuestiture of the company’s jeans unit.

Advance Auto Parts (AAP): [EARNINGS] Beat estimates by 10 cents a share, with adjusted quarterly profit of $2.46 per share. Revenue also beat forecasts as same-store sales rose 2.7%.

Avon Products (AVP): [NEWS] Avon is near a deal to sell itself to Brazilian cosmetics maker Natura Cosmeticos, according to people familiar with the matter who spoke to The Wall Street Journal. The price could not immediately be learned, but Avon has currently has a market cap of about $1.4 billion.

Boeing (BA): [NEWS] Boeing received requests from Air China and China Southern Airlines for compensation related to the grounding of the 737 Max jet. That follows a similar request Tuesday from China Eastern Airlines.

Wynn Resorts (WYNN): [NEWS] Wynn ended talks to sell its Encore Boston Harbor casino to MGM Resorts. The $2.6 billion casino is expected to open in June.

Amgen (AMGN): [NEWS] The world’s largest biotech company struck a deal to buy Danish company Nuevolution for about $167 million, to boost its position in drug discovery.


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