US stock futures drifted mostly sideways on Tuesday, supported by yesterday’s record-breaking run on Wall Street, while investors assessed new threats to global trade as the US added more EU goods to a list of products that it could target with retaliatory tariffs.
This rhetoric, which comes shortly after the latest trade truce between America and China, is in response to a nearing 15-year trans-Atlantic subsidy dispute between America-based aeronautics company, Boeing (BA), and Europe-based, Airbus.
The US Trade Representative’s office in Washington published a list of 89 items on Monday, with an annual trade value of $4 billion worth of EU goods, to target - which adds to a list of $21 billion worth of products published by the USTR in April.
The products range from Scottish and Irish whiskies, pasta, olives, cheese, meat, cherries as well as chemicals and metals. The EU has a similar case pending against Boeing and has readied tariffs of its own.
These high-profile trade moves follow suit to yesterday’s session, where US stocks rallied in tandem with global equities, as the G-20 summit in Osaka fueled optimism that trade tensions will ease.
The S&P 500 closed +0.91% higher; a surge which saw the benchmark index surpass its previous record closing high seen on June 20, and trade as high as +1.3% earlier in the session.
Meanwhile, the tech-heavy Nasdaq Composite added +1.35% to its value, while the Dow Jones Industrial Average recorded lighter gains, up +0.42%.
Ahead, in today’s economic calendar, Tuesday includes; tentative Motor Vehicle Sales data for June from the Bureau of Economic Analysis.
In corporate news; Acuity Brands (AYI) is expected to issue its quarterly earnings reports on today.
TODAY'S TOP HEADLINES
EU & Trade: US Proposes More Tariffs on EU Goods in Airbus-Boeing Dispute. (Bloomberg)
The US added more European Union products to a list of goods it could hit with tariffs in a long-running subsidy dispute between Boeing Co. and Airbus SE.
Energy: OPEC agrees to extend current production cuts by 9 months. (CNBC)
OPEC agreed to extend production cuts until next March on Monday, as the Middle East-dominated producer group overcame their differences to endorse a policy designed to support oil prices.
Today's Economical Announcements.
Tentative - ★☆☆ - Total Vehicle Sales (Previous: 17.30M)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
KAR Auction Services (KAR): [DOWNGRADE] Guggenheim downgraded the stock to “sell” from “neutral,” citing “cyclical headwinds” and increasing competition.
Roku (ROKU): [DOWNGRADE] RBC Capital Markets downgraded the streaming device maker to “sector perform” from “outperform,” citing a less attractive “risk-reward” outlook.
Comerica (CMA): [DOWNGRADE] Goldman Sachs downgraded the financial services company to “sell” from “neutral,” and cut its price target on the stock to $70 per share from $86 a share. highlighting increasing pressure on margins as the Federal Reserve signals the possibility of lower rates.
Coty (COTY): [DOWNGRADE] Citi downgraded the stock to “sell” from “neutral”, noting that a recent management turnaround plan will take longer than expected to impact the company’s business.
Nordstrom (JWN): [DOWNGRADE] UBS downgraded Nordstrom to “neutral” from “buy,” and slashed its price target on the stock to $33 per share from $65 a share, citing Nordstrom’s competitive position is weaker than in years past.
Nike (NKE): [NEWS] Pulled a sneaker featuring an early US flag known as the “Betsy Ross” flag after former NFL player Colin Kaepernick told the company the flag was offensive to some people.
GAINERS: IPHI, WYNN, RUN, VIAV, SPWR, BX
DECLINERS: COTY, FNKO, ARWR
WE WILL SHOW YOU THE WAY!