US stocks turned higher on Tuesday, as investors reacted to comments from European Central Bank President, Mario Draghi, who had given his clearest indication yet that the ECB will launch another round of economic stimulus, should indicators of “lingering softness” in the economy fail to subside.
Speaking at the ECB’s flagship annual conference in Sintra, Portugal, Mr Draghi also laid the foundation for a potential re-opening of the ECB's controversial quantitative easing program, telling a conference, on Tuesday, that the bank has room to buy more bonds in order to stoke inflation in the currency area.
The dovish guidance comes as the US Federal Reserve prepares to discuss whether to cut interest rates in response to signs that the global trade war is hitting growth, with policymakers due to meet in Washington today.
These moves in pre-market trading look to extend upon yesterday’s gains, where Wall Street drifted cautiously higher ahead of this week’s string of central bank meetings.
Advances in Energy (+0.84%), Healthcare (+0.45%) and Real Estate (+0.30%) shares helped the benchmark S&P 500 index climb just +0.04% higher in New York, with Materials (-0.92%) and Financials (-0.92%) being the session’s main laggards.
Ahead, in today’s economic calendar, Tuesday includes; Building Permits and Housing Starts for May at 8:30am EST.
In earnings; Adobe (ADBE), Jabil (JBL) and La-Z-Boy (LZB) are amongst the major companies scheduled to report today.
TODAY'S TOP HEADLINES
Europe & Economy: Euro falls sharply as ECB’s Draghi clears path for more stimulus. (CNBC)
European Central Bank President, Mario Draghi, defended the tools that the institute has available on Tuesday, saying that it could cut interest rates again or provide further asset purchases if inflation doesn’t reach its target.
Energy & Oil: Saudis Push to Renew OPEC’s Oil-Export Curbs, Despite Tanker Attacks. (The WSJ)
Saudi Arabia is cutting its oil output and is asking other producers for restraint in production, according to officials in the group, as signs of slowing global demand for crude outweigh threats of war and worries about supply disruptions in the Middle East.
Today's Economical Announcements.
08:30AM - ★★★ - Building Permits (May) (Previous: 1.290M)
08:30AM - ★★☆ - Housing Starts (May) (Previous: 1.2235M)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Facebook (FB): [NEWS] Facebook announced a new digital currency called “Libra,” with a projected launch date in the first half of 2020. The move is designed to expand Facebook’s presence in e-commerce and global payments.
Alibaba (BABA): [NEWS] Announced a major management overhaul, highlighted by putting Chief Financial Officer Maggie Wu in charge of the China e-commerce giant’s strategic investments.
Boeing (BA): [NEWS] Recorded no new jet orders on the first day of the Paris Air Show, as it tries to restore customer confidence following the grounding of the 737 Max jet.
Oracle (ORCL): [DOWNGRADE] Downgraded to “neutral” from “outperform” at Macquarie Research, which thinks the business software giant is underinvesting in its future.
MoneyGram (MGI): [NEWS] Blockchain firm Ripple bought a $30 million stake in the payments company. Ripple bought MoneyGram shares for $4.10 per share, compared to Monday’s close of $1.45.
Pinterest (PINS): [RATING] Rated “outperform” in new coverage at Wedbush, which considers Pinterest as fundamentally different than other social media platforms in its ability to lead to sales of products and services.
AT&T (T): [NEWS] The company’s WarnerMedia unit is near a large production deal with “Star Wars: The Force Awakens” director J.J. Abrams, according to people familiar with the matter who spoke to the Los Angeles Times.
Bank of America (BAC): [UPGRADE] Upgraded to “outperform” from “market perform” at BMO Capital, which cites both valuation and its belief that consensus estimates for the bank are too low.
Comcast (CMCSA), Charter Communications (CHTR): [NEWS] The cable operators and rival Cox Communications announced a joint program to advance targeted advertising technology.
CBS (CBS), E.W. Scripps (SSP), Fox (FOXA), Tegna (TGNA): [NEWS] The TV station operators, along with Cox Enterprises, settled with the Justice Department in a case involving alleged sharing of competitively sensitive information related to local ad sales.
Caesars Entertainment (CZR): [NEWS] Caesars shareholder Carl Icahn believes the casino operator’s board is demanding too much in buyout talks with Eldorado Resorts (ERI), according to a report in the New York Post.
GAINERS: CJ, IOVA, BYND, PAYS, DOCU, VTR
DECLINERS: HIBB, BHVN, ALGN, ECL, TSN, PPC, DOW
WE WILL SHOW YOU THE WAY!