US stock futures were undecided on Thursday, as the street responded to reports of tensions between America and China over Hong Kong.
China hardened its stance, forging ahead with a resolution to impose national-security laws on Hong Kong; in defiance of President Trump.
Donald Trump has since announced that he would respond strongly to the measure, perhaps imposing certain trade barriers.
Ahead, today’s economic calendar includes; Weekly Jobless Claims, Durable Goods Orders and the second estimate for first-quarter GDP at 8:30am EST, followed by Pending Home Sales for April at 10am EST and Crude Oil Inventories for the week ended May 22 at 11:00am EST.
In corporate news; Costco (COST), Dollar General (DG), Dollar Tree (DLTR) Salesforce.com (CRM), Dell Technologies (DELL), Marvell Technology (MRVL), Nio (NIO) and GameStop (GME) will report today.
TODAY'S TOP HEADLINES
China & Politics: China Votes to Override Hong Kong’s Autonomy on National Security. (The WSJ)
China’s legislature approved a resolution to impose national-security laws on Hong Kong, overriding the territory’s partial autonomy in a bid to end anti-Beijing protests that have challenged leader Xi Jinping.
Today's Economical Announcements.
08:30AM - ★★★ - Weekly Jobless Claims (Previous: 2,440,000)
08:30AM - ★★★ - C. Durable Goods (Apr)(Previous: -0.2%)
08:30AM - ★★☆ - Durable Goods (Apr) (Previous: -14.4%)
08:30AM - ★★★ - GDP (Q1) (Previous: 2.1%)
10:00AM - ★★★ - Pending Home Sales (Apr) (Previous: -20.8%)
11:00AM - ★★★ - Crude Oil Inventories (Previous: -4.983M)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Toll Brothers (TOL): [EARNINGS] Earned 59 cents per share for its latest quarter, 14 cents a share above estimates. The luxury home builder’s revenue also above forecasts. The company scrapped its 2020 forecast due to uncertainty related to the coronavirus outbreak.
Abercrombie & Fitch (ANF): [EARNINGS] Lost $3.29 per share for its latest quarter, wider than the loss of $1.39 per share anticipated by analysts. Revenue was also below forecasts, with sales impacted by pandemic-related closures.
Boeing (BA): [NEWS] Restarted production of its grounded 737 Max jet. The news came shortly after Boeing announced it was cutting more than 12,300 U.S. jobs.
HP Inc. (HPQ): [EARNINGS] Beat estimates by 7 cents a share, with quarterly profit of 51 cents per share. The computer and printer maker’s revenue fell short of Wall Street projections. Laptop computer sales grew, but printing and desktop sales plunged.
Workday (WDAY): [EARNINGS] Fell 4 cents a share short of estimates, with quarterly earnings of 44 cents per share. The maker of financial management and human resources software’s revenue came in slightly above forecasts. The bottom line was impacted by product development expenses and sales and marketing costs, among other factors.
Dollar Tree (DLTR): [EARNINGS] Earned $1.04 per share for its latest quarter, beating the 85 cents a share consensus estimate. Revenue also beat forecasts, with the discount retailer’s overall same-store sales rising 7% compared to a 4.4% consensus estimate. Dollar Tree-branded stores did see a 0.9% drop in comparable sales, compared to estimates of a 1.2% increase, but Family Dollar saw a 15.5% rise compared to the consensus estimate of 8.1%. Like rival Dollar General, Dollar Tree benefited from the change in consumer behavior spurred by the pandemic.
Hertz (HTZ): [NEWS] Investor Carl Icahn exited his entire position in Hertz, according to an SEC filing. That comes a few days after the car rental company filed for Chapter 11 bankruptcy, a decision Icahn said he supports despite taking a “significant loss” on his position. Icahn had been Hertz’s largest shareholder.
Burlington Stores (BURL): [EARNINGS] Lost $4.76 per share for its latest quarter, wider than the loss of $1.55 a share anticipated by analysts. Revenue was well below estimates, and Burlington said it was not prepared to give 2020 guidance. Stores were closed on March 22 due to the pandemic and remained closed through the end of the quarter. Some 332 stores have reopened since then, and the remainder are expected to open by the middle of June.
Twitter (TWTR), Facebook (FB): [NEWS] President Donald Trump set to issue an executive order targeting social media companies after Twitter began to fact-check tweets include those from Trump.
American Airlines (AAL): [NEWS] Planning to cut management and support staff by about 30%, according to a letter to employees. The airline will first offer voluntary options, then move on to involuntary reductions.
Box (BOX): [EARNINGS] Reported quarterly earnings of 10 cents per share, doubling forecasts, while the cloud computing company’s revenue also beat estimates. Box also gave an upbeat revenue forecast as it benefits from an increasing number of employees working from home.
Amazon.com (AMZN): [NEWS] Said it would offer permanent jobs to about 70% of the U.S. workers hired to cope with the increased demand generated by the Covid-19 pandemic.
Delta Air Lines (DAL): [NEWS] Will announce details of two voluntary job reduction programs today, according to a letter sent to employees by the airline’s CEO, Ed Bastian.
Dollar General (DG): [EARNINGS] Reported quarterly profit of $2.56 per share, compared to a consensus estimate of $1.74 a share. Revenue exceeded forecasts as well, and a same-store sales jump of 21.7% was well above the 8.7% FactSet estimate. Dollar General said the pandemic had a significant positive impact on sales, and that it expects to exceed prior forecasts.
e.l.f. Beauty (ELF): [NEWS] Is the target of a proxy fight by private-equity firm Marathon Partners, which plans to nominate three directors to the discount cosmetics company’s board. Marathon is dissatisfied with the company’s cost structure and stock price, among other things.
Apple (AAPL): [NEWS] Landed director Martin Scorsese’s next film, “Killers of the Flower Moon” for its Apple TV service, according to The Wall Street Journal. It beat out competitors such as Netflix (NFLX), which had produced Scorsese’s last film, “The Irishman.”
GAINERS: MRSN, STNE, OEC, GPS, TRIP
DECLINERS: ARCT, RCUS, CVM
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