Bad news, seemingly meant good news overnight in Beijing, with Asian stocks having traded mostly higher following data published which had shown China’s growth to have eased in April – a figure which had led to speculation that Beijing may look to boost stimulus, but also hold a ‘weak-hand’ in bargaining its standoff with Washington.
These developments were paired with President Trump’s description of his dispute with China as “a little squabble” on Tuesday, as Secretary, Steven Mnuchin, prepares to travel to Beijing to resume trade talks.
Stateside, US stock futures were positioned lower ahead of the New York open, though sentiment remains largely supported by recent softening in President Donald Trump’s rhetoric; suggesting that talks could resume in the coming weeks.
Trump’s reiterated optimism that China still wanted to ink a trade deal with the US helped to allay some of the market’s concern over rising tensions between the world’s two largest economies yesterday, sending equities rebounding back from their worst day in months on Monday.
Through a series of tweets on Tuesday, Trump said; “When the time is right, we will make a deal with China”, adding; “It will all happen, and much faster than people think!”.
Following the closing bell, the S&P 500 had finished trading +0.90% higher, pulling back from an intraday rise of as much as +1.5%. The Nasdaq Composite and Dow Jones also recorded similar gains, ending the session positive +1.10% and +0.92%, respectively.
In today’s economic calendar, Wednesday includes; Retail Sales data for April at 8:30am EST, Industrial and Manufacturing Production figures for April at 8:30am EST, followed by Oil Inventories for the week ended May 10 at 10:30am EST.
In today’s corporate news; Cisco Systems (CSCO), Alibaba Group Holding (BABA), Macy’s (M) and Jack in the Box (JACK) are the major companies that will be on earnings-watch today.
TODAY’S TOP HEADLINES
China & Trade: China’s Economy Lost Momentum Even Ahead of Trump’s New Tariffs. (Bloomberg)
China’s economy lost steam in April, underscoring the fragility of the world’s second-largest economy as it girds for an intensified face-off with the US over trade.
Europe & Trade: Trump’s threat of auto tariffs on Europe may really be a ‘Trojan horse’. (CNBC)
President Donald Trump’s next trade battle could involve the US slapping steep tariffs on auto imports from Europe.
Today’s Economical Announcements.
08:30AM – ★★★ – C. Retail Sales (MoM) (Apr) (Previous: 1.2%)
08:30AM – ★★★ – Retail Sales (MoM) (Apr) (Previous: 1.6%)
09:15AM – ★★☆ – Industrial Prod. (MoM) (Apr) (Previous: -0.1%)
09:15AM – ★☆☆ – Manuf. Prod. (MoM) (Apr) (Previous: -0.3%)
10:30AM – ★★★ – Crude Oil Inventories (Previous: -3.963M)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Alibaba (BABA): [EARNINGS] Beat estimates by a wide margin on both the top and bottom lines, driven both by increased user engagement and growth in its cloud business.
Macy’s (M): Reported adjusted quarterly profit of 44 cents per share, beating consensus forecasts of 33 cents expected. Same-store sales that topped analysts’ expectations, as its initiatives to refresh outdated stores and get more people to shop using its mobile app showed signs of paying off.
Agilent Technologies (A): [EARNINGS] Reported adjusted quarterly profit of 71 cents per share, missing consensus forecasts by one cent. Revenue fell short of estimates, pointing to weakness in its pharmaceutical and food markets. Agilent also gave a current quarter outlook that falls largely below Wall Street forecasts.
The Container Store (TCS): [EARNINGS] Beat estimates by three cents with adjusted profit of 33 cents per share for its fiscal fourth quarter, with revenue also beating estimates.
Tilray (TLRY): [EARNINGS] Reported an adjusted quarterly loss of 27 cents per share, two cents larger than analysts were expecting. The Canadian marijuana producer’s revenue did come in above estimates, helped by acquisitions, legalization of recreational marijuana use in Canada and growth in its medical markets.
Aurora Cannabis (ACB): [EARNINGS] Lost five cents per share for its fiscal third quarter, matching forecasts, while revenue fell below analyst estimates. Aurora saw a surge in revenue from a year earlier, helped by the same factors that helped Tilray.
Zillow Group (ZG): [UPGRADE] Upgraded to “buy” from “neutral” at Guggenheim, based on optimism about Zillow’s “Offers” home sale service.
Restaurant Brands International (QSR): [NEWS] The company’s Tim Hortons chain will be testing three breakfast options made with Beyond Meat’s meatless patty.
Biogen (BIIB): [NEWS] Biogen reached an agreement to sell its spinal muscle atrophy treatment Spinraza to England’s National Health Service for an undisclosed price.
Xilinx (XLNX): [GUIDANCE] Forecast fiscal 2020 revenue was posted above forecasts at $3.45 billion to $3.6 billion. The specialty chip maker is currently rolling out new semiconductors for use in 5G equipment
McDonald’s (MCD): [NEWS] The restaurant chain will let its franchisees decide which breakfast items to serve on an all-day basis, in an effort to simplify operations and reduce wait times for customers.
Legg Mason (LM): [NEWS] May be the target of an activist campaign by Nelson Peltz’s Trian management, according to the Wall Street Journal.
Amdocs (DOX): [EARNINGS] Reported adjusted quarterly profit of $1.06 per share, beating estimates by three cents. Revenue also beat forecasts, and the company also raised its full-year forecast.
DECLINERS: UNIT, GGG, IRDM
Bricktown Restaurant (BEER) (Low: 7, High: 9) (Est. Vol: $15.0M)
Postal Realty Trust (PSTL) (Low: 19, High: 21) (Est. Vol: $100.0M)