Stocks across Europe extended their weekly declines, alongside stateside pre-market equity index futures ahead of the US open, after a slew of trade-related headlines continued to reverberate the White House’s threat to intensify its trade dispute with China.
Monday’s session had seen the S&P 500 end -0.41% lower, following a reaction to comments made by President Trump, who wrote on Twitter that he would raise tariffs on $200 billion of Chinese goods to 25% from 10% on Friday, amid talks that had been progressing “too slowly”.
The benchmark index had however scored a hollow victory, having clawed back from much of its -1.6% intra-day low, amid optimism that a Chinese delegation was “preparing to travel to the US for the trade talks”, this week during May 9 and 10.
Amongst yesterday’s heaviest decliners were; Material (-1.43%), Industrial (-0.96%) and Technology (-0.77%) sectors; with the broadly defensive Healthcare sector (+0.51%) acting as much of yesterday’s counterweight.
In today’s economic calendar; US Job Openings data for March is scheduled for release at 10:00am EST.
In today’s corporate news, earnings reports are expected from; Lyft (LYFT), Allergan (AGN), Electronic Arts (EA), Sprint (S), Emerson Electric (EMR), Dean Foods (DF), SeaWorld (SEAS), Lumentum Holdings (LITE), Papa John’s (PZZA) and Wynn Resorts (WYNN).
TODAY’S TOP HEADLINES
China & Trade: Top China Trade Negotiator to Visit US to Face Tariff Threat. (Bloomberg)
China’s top trade negotiator, Liu He, will visit the US this week for a new round of high-wire talks, in a sign Beijing is battling to keep negotiations on track after President Donald Trump ratcheted up pressure with plans to raise tariffs on Chinese goods.
Today’s Economical Announcements.
10:00AM – ★★★ – JOLTs Job Openings (Mar) (Previous: 7.087M)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Aramark (ARMK): [EARNINGS] Missed estimates by 4 cents a share, with adjusted quarterly profit of 45 cents per share. Revenue was essentially in line with expectations. Its full-year forecast was also slightly short of analysts’ forecasts.
Mallinckrodt (MNK): [EARNINGS] Earned an adjusted $1.94 per share for its first quarter, 24 cents a share above consensus forecasts. Revenue also topped estimates, helped by a return to growth for its specialty generics business. The company also raised its full-year forecast.
AIG (AIG): [EARNINGS] Earned an adjusted $1.58 per share for the first quarter, well above the $1.06 a share consensus estimate. Revenue came in above forecasts, and its general insurance operation saw an underwriting profit for the first time in a decade.
Ferrari (RACE): [EARNINGS] Reported a 22% jump in net profit during the first quarter from a year earlier, helped by sales growth for its Portofino sports car line.
Regeneron Pharmaceuticals (REGN): [EARNINGS] Reported adjusted quarterly profit of $4.45 per share, short of the $5.46 a share consensus estimate. The drugmaker’s revenue also missed forecasts, hurt by a surge in expenses.
Gluu Mobile (GLUU): [EARNINGS] Earned an adjusted 5 cents per share for the first quarter, matching forecasts. Revenue came in above estimates. However, Gluu also gave weaker-than-expected guidance for both the second quarter and the full year.
Hertz Global (HTZ): [EARNINGS] Reported a quarterly loss of 99 cents per share, smaller than the $1.33 per share loss that analysts had been predicting. The car rental company’s revenue was essentially in line with estimates.
Boeing (BA): [DOWNGRADE] Downgraded to “equal weight” from “overweight” at Barclays, which thinks passengers will try to avoid flying 737 Max jets for longer than anticipated.
Pioneer Natural (PXD): [EARNINGS] Reported adjusted quarterly profit of $1.83 per share, beating consensus estimates by 22 cents a share, though revenue was below forecasts. The energy producer also announced it sold various assets to focus solely on its operations in the Permian basin.
PepsiCo (PEP): [NEWS] Will invest about $4 billion in Mexico over the next year in conjunction with Mexican partner Grupo Gepp, with part of that investment going to a new $109 million plant.
Allergan (AGN): [EARNINGS] Beat estimates by 24 cents a share, with adjusted quarterly profit of $3.79 per share. Revenue exceeded forecasts, helped by sales growth for existing products like Botox and Juviderm. The company also raised its full-year forecast amid what it calls a rapidly progressing product pipeline.
Anadarko Petroleum (APC): [NEWS] Anadarko said Occidental Petroleum’s (OXY) $38 billion takeover bid is superior to the deal it had in place to be bought by Chevron (CVX). Anadarko has notified Chevron that it is determining the deal, with Chevron now having four days to respond with another offer should it decide to do so.
Mosaic (MOS): [EARNINGS] Beat estimates by a penny a share, with adjusted quarterly profit of 25 cents per share. Revenue came in above analysts’ forecasts. The better-than-expected results occurred despite poor weather, which boosted Mosaic’s costs.
GAINERS: SBGI, PODD, BLDR, LPLA, CCS
DECLINERS: AMG, PETS, GES, BGS
Landcadia Holdings II (LCAHU) (Price: 10) (Est. Vol: $275.0M)
Trevi Therapeutics (TRVI) (Price: 10) (Est. Vol: $55.0M)