New York looks set to commence the week slightly negative, with the upcoming Federal Reserve meeting weighing on the mounting debate surrounding global economic slowdown.
This week’s trading will be headlined by the two-day Fed policy meeting which begins on Tuesday and ends with a decision on interest rates and a press conference on Wednesday.
This follows suit to Friday’s session which saw Wall Street fade lower as US stocks latched on to a negative lead from Asian markets. Data from China stirred growth outlook concerns impinged by Washington’s trade war with Beijing; these concerns triggered a decline across the broader market, positioning all three major US indices in correction territory for the first time since March 2016.
The S&P 500 finished at its lowest level since early April as growth-oriented sectors such as; Technology (-2.45%), Energy (-2.28%) and Financials (-0.98%) led the market lower.
Healthcare was the worst-daily-performer, down -3.37%, as Johnson & Johnson (JNJ: -10%) staged its largest one-day drop in years after Reuters reported the company had known for decades about the presence of asbestos in its baby powder.
The blue-chip Dow Jones closed -1.97% lower, while the tech-heavy Nasdaq recorded a -2.43% decline.
In today’s economic calendar, investors will likely refer to NY Empire State Manufacturing Index figures at 8:30am EST, followed by AHB Housing Market data at 10am EST.
In the earnings front; Oracle (ORCL), Red Hat (RHT) and Steelcase (SCS) are all expected to publish their latest quarterly earnings today.
TODAY’S TOP HEADLINES:
Politics: Republicans, Democrats at an Impasse on Border Wall as Shutdown Nears. (The WSJ)
The charged politics around funding a wall along the southern border has both parties struggling to keep the government funded as the clock ticks toward a partial shutdown at week’s end.
Canada: Justin Trudeau is trying to get Canada out of a multibillion-dollar Saudi arms deal. (CNBC)
Canadian Prime Minister Justin Trudeau is trying to pull Canada out of a multibillion-dollar arms deal with the Saudis, he said in an interview aired Sunday.
Energy & Oil: Turkish foreign minister criticizes Saudis; says ‘didn’t share anything’ on Khashoggi murder. (CNBC)
Turkey still hasn’t received actionable information on the murder of Saudi journalist Jamal Khashoggi, its foreign minister Mevlut Cavusoglu told CNBC Sunday.
Today’s Economical Announcements
08:30AM – NY Empire State Manufacturing (Dec) (Previous: 23.30)
10:00AM – NAHB Housing Market Index (Dec) (Previous: 60)
STOCKS IN THE SPOTLIGHT:
Pre-Market Movers & News Related Stocks
Best Buy (BBY): [DOWNGRADE] Bank of America downgraded Best Buy to “underperform” from “neutral,” noting overall deceleration in industry growth trends as well as its continued caution on key areas for the electronics retailer, such as TVs.
Jack In The Box (JACK): [NEWS] The restaurant chain said it is exploring a number of strategic and financial natives to maximize shareholder value, including a possible sale.
PG&E (PCG): California regulators say the utility company falsified natural gas pipeline safety records for years.
Lululemon (LULU): [UPGRADE] Upgraded to “buy” from “hold” at Stifel Nicolaus, which said it sees positive sales momentum at the athletic apparel maker that puts it on target for double-digit revenue growth.
Goldman Sachs (GS): [NEWS] Is the target of criminal charges in Malaysia stemming from the 1MDB scandal.
HCA (HCA), Humana (HUM), UnitedHealth (UNH): [NEWS] Health-care stocks are on watch after a federal judge ruled the Affordable Care Act as unconstitutional in a case that is seen as likely to go all the way to the U.S. Supreme Court.
Boeing (BA): [NEWS] Announced a finalized joint venture with Embraer first announced in July, in which Boeing will pay $4.2 billion for an 80 percent stake.
Bristol-Myers Squibb (BMY): [NEWS] Near a deal to sell its French over-the-counter drug business to Japan’s Taisho Pharmaceutical for $1.6 billion, according to a Bloomberg report.
Alphabet (GOOGL): [NEWS] The company’s Google unit announced a $1 billion investment to establish a new campus known as Google Hudson Square in New York City.
Amazon.com (AMZN): [NEWS] Is sharpening its focus on the bottom line and making moves to remove unprofitable items from its site, according to The Wall Street Journal.
EQT (EQT): [NEWS] EQT’s board is asking to meet with major shareholders Toby and Derek Rice for talks after the two threatened a board challenge, according to a Reuters report.
Stanley Black & Decker (SWK): [UPGRADE] Upgraded to “buy” from “hold” at Deutsche Bank, saying it continues to like the company’s fundamentals and is now less concerned than it was previously about the possible impact of tariffs.
Sherwin-Williams (SHW): [UPGRADE] Upgraded to “overweight” from “neutral” at JPMorgan Chase, which thinks coatings companies will benefit from positive pricing momentum.
GAINERS: SCG, PG
LOSERS: JNJ, COST, ENDP