US pre-market equity index futures drifted sideways, little changed ahead of the New York open, after a recent global stock rally lost some steam on Tuesday in the wake of a stellar start to the trading week where investors priced in stronger-than-expected factory data from both the US and China.
Private readings of manufacturing activity from both Washington and Beijing, released Monday, had shown modest improvements for both of the world’s factory powerhouses in March. However, despite this, market participants are seemingly looking to balance this data against increasing evidence that the ongoing trade war between the world’s two biggest economies has hurt growth in other parts of the world.
Monday’s session saw Wall Street’s S&P 500 index hit a near six-month high, advancing +1.19% after closing its best first quarter since 1998. Amongst the market leading sectors were Financials (+2.45%) and Industrials (+2.07%), while the Energy sector (+1.32%) also climbed amid a rise in oil prices.
A strong day Technology stocks (+1.36%) helped the Nasdaq Composite notch a +1.32% gain, while the Dow Jones Industrial Average saw similar gains, up +1.26%.
In today’s economic calendar; Durable Goods Order data for February is expected to be released at 8:30am EST.
In today’s earnings Walgreens Boots Alliance (WBA), Dave & Buster’s Entertainment (PLAY), GameStop (GME) and Lamb Weston Holdings (LW) are amongst the major companies scheduled to report.
TODAY’S TOP HEADLINES
Trade & Economy: Global recession is ‘highly likely’ if there’s no US-China trade deal within months, Moody’s warns. (CNBC)
The global economy is “highly likely” to fall into a recession if the US and China don’t reach a trade deal within three months, according to Moody’s Analytics Chief Economist Mark Zandi.
Brexit: May’s Cabinet Confronts Brexit Crisis After Commons Stalemate. (Bloomberg)
Theresa May is expected to confront her most senior ministers with the potentially explosive option of delaying Brexit by months, as the UK struggles to find a plan for leaving the European Union.
Cryptocurrency: Bitcoin’s Sudden Surge Propels It Above $5,000. (Bloomberg)
An abrupt surge in Bitcoin sent the world’s most popular cryptocurrency to the highest level since November, jolting the $160 billion market for digital assets after three months of calm.
ECONOMIC CALENDAR
Today’s Economical Announcements
08:30AM – ★★★ – C. Durable Goods (Feb) (Previous: -0.2%)
08:30AM – ★★☆ – Durable Goods Orders (Feb) (Previous: 0.3%)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks
Walgreens Boots Alliance (WBA): [EARNINGS] Reported adjusted quarterly profit of $1.64 per share, 8 cents a share below estimates. Revenue missed and Walgreens cut its full-year earnings forecast, noting market challenges that have accelerated.
Nio (NIO): [NEWS] Nio said it delivered 3,989 of its ES8 electric SUV model in the first quarter, bringing total deliveries of that model by the China-based electric vehicle maker to 15,337 vehicles.
Dow Inc. (DOW): [NEWS] Dow will begin trading today on the New York Stock Exchange, following its separation from DowDupont. The materials sciences company’s stock will also replace DowDupont in the Dow Jones Industrial Average as of today.
Lab Corp (LH): [UPGRADE] Upgraded to “buy” from “hold” at Jefferies, based on the prospect that the company will be included in a preferred lab network being rolled out by health insurer UnitedHealth.
Wells Fargo (WFC): [REVIEW] Had its outlook cut to “negative” from “stable” by Standard & Poor’s, with the ratings agency saying the resignation of Tim Sloan as chief executive officer adds another layer of uncertainty for the bank.
Quest Diagnostics (DGX): [UPGRADE] Upgraded to “buy” from “hold” at Jefferies, based on the prospect that the company will be included in a preferred lab network being rolled out by health insurer UnitedHealth.
Boeing (BA): [NEWS] Boeing will submit its software upgrade for the 737 MAX jet in the “coming weeks,” later than originally planned, according to both the Federal Aviation Administration (FAA) and Boeing.
Lyft (LYFT): [RATING] Rated “sell” in new coverage at Seaport Global Securities, with a price target of $42. The firm calls the thesis that millennials and later generations will forego car ownership a “big leap of faith.”
Amazon.com (AMZN): [NEWS] Amazon is cutting prices at its Whole Foods supermarkets this week, with The Wall Street Journal reporting that more than 500 products will see reduced prices. The paper said the price reductions will focus on produce and meat.
Walt Disney (DIS): [RATING] Rated “buy” in new coverage at Rosenblatt Securities, with a price target of $150. Rosenblatt said the current valuation is “compelling,” given its view that the company’s Disney+ service will likely be successful.
Exelon (EXC): [UPGRADE] Upgraded to “outperform” from “market perform” at Wells Fargo Securities, which pointed to several factors including new supportive nuclear-related legislative initiatives.
Intuitive Surgical (ISRG): [RATING] Rated “buy” in new coverage at Deutsche Bank, with a price target of $630. Deutsche Bank said that the company is the dominant global leader in robotic surgery, and that it has strong, durable revenue growth.
MOMENTUM STOCKS
GAINERS: WYNN, JBL, WCG
LOSERS: LYFT, GH, PBYI
TODAY’S IPOs
Powerbridge Technologies (PBTS) (Price: 5) (Est. Vol: $8.8M)