New York pre-market equity index futures are negative heading into Friday’s open as investors weigh-in the progress of trade talks between Washington and Beijing, while awaiting a reading on US jobs.
In the latest round of talks between the world’s two largest economies, China had promised to “substantially” expand purchases of US agriculture, energy, industrial products and services – with both sides now planning further discussions to reach a breakthrough with only a month to go before the Trump administration is set to ratchet up tariffs.
In a statement, the White House didn’t list any new commitments by either side, saying only that progress had been made and “much work remains to be done”.
The White House reiterated its threat to raise tariffs by March 1, unless a “satisfactory outcome” is reached.
These moves in pre-market trading come after the Wall Street had ended January in style, with a gain on Thursday helping the S&P 500 rule off on its best January gain since 1987, positive +7.9%, continuing the market’s strong recovery from late December.
The benchmark, S&P 500, advanced +0.88% higher to end the month; leveraged by strong reactions to company results, including; Charter Communications (CHTR: +14%), General Electric (GE: +11.7%) and Facebook (FB: +10.8%).
Meanwhile, the Dow Jones Industrial Average edged -0.02% lower on Thursday, weighed down by a -9.2% drop in DowDuPont (DWDP) after its revenue missed analysts’ forecasts.
The Nasdaq Composite, however, jumped +1.4%, as Facebook (FB) led a rally in tech stocks.
In terms of today’s US economic data, Monthly Employment data will be released 8.30am ET, followed by an ISM Manufacturing PMI figure at 10am EST.
In earnings; XOM, CVX, MRK, KKR, CI, JCI, HON, ITW, D, WY, ZBH, BERY, AON, BAH and SPG are amongst the major earnings releases scheduled before market open.
TODAY’S TOP HEADLINES:
Trade & China: Trump Gives Upbeat Assessment of Trade Talks with China. (The WSJ)
The US and China moved closer to settling their trade dispute, with President Trump saying he expects to meet again with Chinese President Xi Jinping to resolve the conflict that has rattled the global economy.
Politics: Trump, in Interview, Calls Wall Talks ‘Waste of Time’ and Dismisses Investigations. (The NYT)
A defiant President Trump declared on Thursday that he has all but given up on negotiating with Congress over his border wall and will build it on his own even as he dismissed any suggestions of wrongdoing in the investigations that have ensnared his associates.
ECONOMIC CALENDAR:
Today’s Economical Announcements
08:30AM – ★★★ – Nonfarm Payrolls (Jan) (Previous: 312,000)
08:30AM – ★★★ – Unemployment Rate (Jan) (Previous: 3.9%)
10:00AM – ★★★ – ISM Manufacturing PMI (Jan) (Previous: 54.3)
STOCKS IN THE SPOTLIGHT:
Pre-Market Movers & News Related Stocks
Amazon.com (AMZN): [EARNINGS] Beat Reported quarterly earnings of $6.04 per share, beating the consensus estimate of $5.68 a share. Revenue also beat forecasts amid a record holiday quarter, however Amazon gave a weaker-than-expected current-quarter sales forecast.
Symantec (SYMC): [EARNINGS] Beat analysts’ forecasts by 5 cents a share, with adjusted quarterly profit of 44 cents per share. Revenue also came in above forecasts on a strong performance by the company’s consumer business.
Deckers Outdoor (DECK): [EARNINGS] Beat Earned $6.59 per share for its latest quarter, well above the consensus estimate of $5.30 per share. Revenue was above forecasts and the maker of Ugg boots also raised its full-year forecast.
Cigna (CI): [EARNINGS] Beat estimates by 4 cents a share, with adjusted quarterly profit of $2.46 per share. Revenue came in above estimates.
Yum China (YUMC): [EARNINGS] Beat Came in 4 cents a share ahead of estimates, with adjusted quarterly profit of 12 cents per share. Revenue was essentially in line with forecasts.
CVS Health (CVS): [NEWS] CVS and other pharmacy benefit managers may come under pressure after the White House proposed a rule that would end rebates that PBMs receive from drug makers.
Cypress Semiconductor (CY): [EARNINGS] Beat Reported adjusted quarterly profit of 35 cents per share, 2 cents a share above estimates. Revenue also beat forecasts.
Merck (MRK): [EARNINGS] Beat Earned an adjusted $1.04 per share for the fourth quarter, beating estimates by a penny a share. Revenue came in very slightly above forecasts.
Honeywell (HON): [EARNINGS] Beat Reported adjusted fourth quarter profit of $1.91 per share, 2 cents a share above estimates. Revenue came in above forecasts. Honeywell also issued a stronger-than-expected full-year earnings outlook.
United Technologies (UTX): [REVIEW] Goldman Sachs added the stock to its “Conviction Buy” list, noting strength in the aerospace aftermarket and the defense sector as well as other positive factors.
Apple (AAPL): [NEWS] Apple blocked Alphabet’s Google unit from running its internally built iOS apps, following reports that Google had been running a voluntary app that let it track user activity.
MOMENTUM STOCKS:
GAINERS: CHTR, NOW, GE, FB, SEND
LOSERS: CNX, DWDP, HRB
TODAY’S IPOs:
Gores Metropoulos (GMHIU) (Price: 10) Shares: 37.5M)