Equities across both Europe and Asia were left looking exposed during much of today’s overnight session as global markets struggled to find a bottom to this week’s stormy selloff.
This follows suit to yesterday’s session where Wall Street suffered its worst loss in months, after the White House’s threat to intensify its trade war with China broadly reverberated amongst global markets.
Tuesday saw the S&P 500 close -1.67% lower, its worst session since March 22, after extending Monday’s session lows by 0.5%. Amongst those most heavily hit by the heightened trade nervousness where; Technology (-2.15%), Industrial (-2.02%), Healthcare (-1.92%) and Material (-1.75%) sectors.
All three major US indices tracked significantly lower, with the tech-heavy Nasdaq Composite index having recorded a steep -1.95% decline, as Semiconductors (-2.46%) and tech-giants such as Apple (AAPL: -2.70%) weighed the index lower. The Dow Jones Industrial Average, meanwhile, posted its worst day since January 3, by a small margin, ending the day with a -1.80% loss in its value.
In today’s economic calendar, market participants are likely to track weekly Oil Inventories data for the week ended May 3 at 10:30am EST.
Meanwhile, although broader market moves have eclipsed corporate season, the backdrop continues to remain favorable for US equities amid rising corporate profits.
Amongst today’s major reporting companies are; Walt Disney (DIS), Sinclair Broadcast Group (SBGI), Hostess Brands (TWNK), Etsy (ETSY), e.l.f. Beauty (ELF), CenturyLink (CTL), Marathon Petroleum (MPC), New York Times (NYT), Wendy’s (WEN), Dropbox (DBX), Fossil Group (FOSL), Microchip Technology (MCHP) and Roku (ROKU).
TODAY’S TOP HEADLINES
IPOs: Uber drivers set to protest around the world ahead of the company’s $90 billion IPO. (CNBC)
Uber and Lyft drivers are logging off ride-hailing apps and taking to the streets in cities around the world Wednesday to protest against working conditions and wages.
China & Economy: China says its April trade surplus was $13.84 billion, far below expectations. (CNBC)
China posted a big miss in its overall trade surplus for April, as exports unexpectedly fell and imports surprisingly rose. The numbers came on Wednesday as the trade impasse between the US and China continues to drag on.
ECONOMIC CALENDAR
Today’s Economical Announcements.
10:30AM – ★★★ – Crude Oil Inventories (Previous: 9.934M)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
TripAdvisor (TRIP): [EARNINGS] Beat estimates by 5 cents a share, with adjusted quarterly profit of 36 cents per share. The travel review website operator’s revenue was short of forecasts, however, and the company said it sees a slowdown in non-hotel revenue growth.
Match Group (MTCH): [EARNINGS] Came in 10 cents a share ahead of estimates, with quarterly earnings of 42 cents per share. The operator of Tinder and other dating services saw revenue beat forecasts, as well, as it gained more subscribers.
Electronic Arts (EA): [EARNINGS] Reported adjusted quarterly profit of $1.31 per share, topping the consensus estimate of 98 cents a share. The video game company’s revenue also exceeded Street forecasts and Electronic Arts issued better-than-expected revenue guidance for the current quarter and the full year.
Office Depot (ODP): [EARNINGS] Matched estimates with adjusted quarterly profit of 7 cents per share, with revenue slightly above forecasts. Office Depot did term the quarter “disappointing,” due to poor performance at its CompuCom division and said it would implement a company-wide cost-reduction program.
Qorvo (QRVO): [EARNINGS] Reported adjusted quarterly profit of $1.22 per share, beating the consensus estimate of $1.05 a share. The maker of radio frequency components also saw revenue beat estimates, and it gave an upbeat current-quarter outlook.
Coty (COTY): [EARNINGS] Reported adjusted quarterly profit of 13 cents per share, beating forecasts by a penny a share. Revenue did fall below estimates, but Coty said supply chain issues that have impacted results in the past have now been largely resolved.
McKesson (MCK): [EARNINGS] Reported adjusted quarterly profit of $3.69 per share, 3 cents a share above estimates. Revenue also came in above analysts’ forecasts on growth in its surgical distribution business. McKesson also announced it was raising its cost savings target by $100 million to up to $500 million by the end of fiscal 2021.
Sprint (S): [EARNINGS] Lost an adjusted 4 cents per share for its latest quarter, wider than the penny a share loss that Wall Street was expecting. The mobile services provider’s revenue come in above estimates, but also saw its steepest decline in subscribers in more than three years.
Lyft (LYFT): [EARNINGS] Lyft lost $1.14 billion in its first earnings report since going public, with the ride-sharing service saying this will be its peak year for losses and that it sees a clear path to profitability.
Bristol-Myers Squibb (BMY): [NEWS] Sold $19 billion in bonds on Tuesday to help finance its planned purchase of drug maker Celgene (CELG), according to The Wall Street Journal. The bond sale was the largest in the US so far this year.
Wendy’s (WEN): [EARNINGS] Came in 3 cents a share above estimates, with quarterly profit of 14 cents per share. Revenue also beat forecasts. Same-restaurant sales were up 1.3%, matching consensus.
Papa John’s (PZZA): [EARNINGS] Reported adjusted quarterly profit of 31 cents per share, 7 cents a share above estimates. Revenue topping analysts’ projections, though the pizza chain reported an overall loss due to legal costs and financial assistance to its franchises in North America.
MOMENTUM STOCKS
GAINERS: NCR, SERV, AIG, RCII, USFD
DECLINERS: MYL, MOS, BJ, IONS, KLAC, AMG, BGS
TODAY’S IPOs
Parsons (PSN) (Price: 27) (Est. Vol: $500.0M)