Stocks around the world rose on Thursday, as stronger-than-expected Chinese trade data, paired with a fixing of the yuan, helped ease fears surrounding a worrisome trade conflict.
China's exports in July rose +3.3% from last year while imports slowed by -5.6% amid weakening domestic demand following a broad consumer push for made-in-China goods.
The stronger export data, as well as gains in Asian equities, offset concerns linked to China's latest yuan peg, which is now set at a 7.0039 per dollar midpoint.
The currency fixing was stronger than anticipated and appeared to ease concerns that Beijing would provoke a reaction from Donald Trump, following recent developments, on Wednesday, which had seen the president falsely claim that China had "admitted" to manipulating its currency as he told reporters in Washington that the country was "killing" the United States "with unfair trade deals".
These pre-market moves look to help extend upon yesterday’s trend higher, where investors pushed back against deepening concerns over the global growth.
The session marked a momentous recovery-day for the leading S&P 500 index, which had ended the session up +0.06%, after fighting back from a decline of as much as -2% at the opening bell.
Support by Technology stocks (+0.62%) saw the Nasdaq Composite close +0.54% higher, while the Dow Jones Industrial Average settled flat, -0.02%, into the close.
Ahead, the today’s economic calendar, Thursday includes; Weekly Jobless Claims at 8:30am EST, followed by Wholesale Inventories for June at 10am EST.
In corporate news; Viacom (VIAB), Kraft Heinz (KHC), Activision Blizzard (ATVI), Uber (UBER), Booking Holdings (BKNG), Cardinal Health (CAH), CBS (CBS), Yelp (YELP), AMC Entertainment (AMC), Symantec (SYMC), New Age Beverages (NBEV), DXC Technology (DXC), Dropbox (DBX), Keurig Dr Pepper (KDP) and Overstock.com (OSTK) are amongst today’s major earnings-reporters.
TODAY'S TOP HEADLINES
China & Economy: China’s exports unexpectedly rise in July. (CNBC)
China on Thursday reported trade data that was better than expected despite mounting economic pressure from elevated US tariffs.
China & Currency: China Sets Yuan Fixing Stronger Than Expected. (Bloomberg)
The yuan steadied on Thursday after China’s central bank set the daily fixing stronger than analysts expected, providing some reassurance to traders rattled by a tumultuous week in markets.
Today's Economical Announcements.
08:30AM - ★☆☆ - Weekly Jobless Claims (Previous: 215,000)
10:00AM - ★☆☆ - Wholesale Inventories (Jun) (Previous: 0.2%)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Roku (ROKU): [EARNINGS] Reported a quarterly loss of 8 cents per share, smaller than the 22 cents a share loss anticipated by analysts. The video streaming device maker also saw revenue beat estimates, as it added 1.4 million net new accounts during the quarter.
Symantec (SYMC): [NEWS] Is near a deal to sell its enterprise unit to chip maker Broadcom (AVGO), according to The Wall Street Journal. The division could be valued at about $10 billion, according to people familiar with the matter.
Zillow (ZG): [EARNINGS] Lost 14 cents per share for its latest quarter, a penny a share less than expected. The real estate website operator’s revenue exceeded estimates, however the shares are under pressure on lower-than-expected guidance, particular for Zillow’s Premier Agent business.
Advanced Micro Devices (AMD): Released its newest chip for data centers and said it won Alphabet’s Google unit (GOOGL) and Twitter (TWTR) as customers for the chip.
Lyft (LYFT): [EARNINGS] Lost 68 cents per share for the second quarter, less than half the $1.74 per share loss predicted by analysts. The ride-hailing service’s revenue came in well above estimates, as active riders increased by 41% compared to a year earlier.
Party City (PRTY): [EARNINGS] Fell 14 cents a share shy of consensus forecasts, with adjusted quarterly profit of 22 cents per share. Revenue also missed forecasts. The company also gave a lower-than-expected full-year forecast, as it sees an impact from on ongoing helium shortage and higher freight costs. Separately, Party City agreed to sell its Canadian business to Canadian Tire for $131 million.
Booking Holdings (BKNG): [EARNINGS] Earned an adjusted $23.59 per share for its latest quarter, compared to a consensus estimate of $22.71 a share. The parent of Priceline and other online travel services saw revenue beat estimates as well, in what the company called a solid start to the summer travel season.
Cardinal Health (CAH): [EARNINGS] Beat estimates by 18 cents a share, with adjusted quarterly earnings of $1.11 per share. Revenue beat forecasts as well. The company said it “still has work to do” but is now positioned for growth in an evolving health-care environment.
Viacom (VIAB): [EARNINGS] Reported adjusted quarterly profit of $1.20 per share, 13 cents a share above estimates. Revenue also topped forecasts, helped by a return to growth for domestic ad sales.
Vitamin Shoppe (VSI): [BUYOUT] Agreed to be bought by Liberty Tax for $208 million in cash, or $6.50 per share. The price represents a 43% premium to yesterday’s closing price for Vitamin Shoppe.
TripAdvisor (TRIP): [EARNINGS] Fell 6 cents a share short of forecasts, with adjusted quarterly profit of 45 cents per share. The travel website operator’s revenue also came in short of analysts’ expectations.
Salesforce.com (CRM): [BUYOUT] Is buying Israel-based software developer ClickSoftware for $1.35 billion in cash and stock.
Fox Corp. (FOXA): [EARNINGS] Beat estimates by 3 cents a share, with adjusted quarterly profit of 62 cents per share. The media company’s revenue also beat estimates, boosted by higher fees from cable and satellite operators as well as other program distributors.
Norwegian Cruise Line (NCLH): [EARNINGS] Came in 4 cents a share above estimates, with adjusted quarterly profit of $1.30 per share. Revenue also beat estimates. Norwegian said demand was “robust,” but issued a full-year earnings forecast slightly below consensus as it sees an impact from the cancellation of Cuba sailings.
Kontoor Brands (KTB): [EARNINGS] Reported adjusted quarterly profit of 96 cents per share, compared to a consensus estimate of 67 cents a share. Revenue was also above forecasts, although sales were impacted by the bankruptcy of a major customer as well as a stronger dollar. The report was Kontoor’s first since being spun off from VF Corp. earlier this year.
InterActiveCorp (IAC): [EARNINGS] Earned an adjusted $1.19 per share for its latest quarter, with the internet holding company’s revenue slightly above Wall Street forecasts. Separately, IAC said it is considering distributing its stakes in Match Group and ANGI Homeservices to shareholders.
GAINERS: WW, MTCH, GH, ALNY, FLT, CVS, KR, USFD
DECLINERS: AXGN, INGN, BECN, SUPN
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